Acadian Asset Management LLC Grows Stock Position in Karat Packaging Inc. $KRT

Key Points

• Acadian Asset Management LLC increased its stake in Karat Packaging by 9.0%, now owning 245,734 shares worth approximately $6.53 million.
• Research firms recently set a consensus price target of $31.67 for Karat Packaging, with one analyst rating it as a Buy and three as Hold.
• The company announced a quarterly dividend of $0.45 per share, reflecting an annualized yield of 7.5%, despite a high payout ratio of 113.21%.

Acadian Asset Management LLC lifted its stake in Karat Packaging Inc. (NASDAQ:KRT - Free Report) by 9.0% during the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm owned 245,734 shares of the company's stock after buying an additional 20,262 shares during the period. Acadian Asset Management LLC owned approximately 1.22% of Karat Packaging worth $6,529,000 as of its most recent SEC filing.

A number of other hedge funds also recently bought and sold shares of the business. GAMMA Investing LLC grew its holdings in shares of Karat Packaging by 4,151.4% during the 1st quarter. GAMMA Investing LLC now owns 1,488 shares of the company's stock worth $40,000 after acquiring an additional 1,453 shares during the period. Deutsche Bank AG boosted its position in shares of Karat Packaging by 773.6% in the 4th quarter. Deutsche Bank AG now owns 1,590 shares of the company's stock worth $48,000 after purchasing an additional 1,408 shares in the last quarter. Comerica Bank lifted its position in Karat Packaging by 107.8% in the 4th quarter. Comerica Bank now owns 5,262 shares of the company's stock valued at $159,000 after acquiring an additional 2,730 shares in the last quarter. BNP Paribas Financial Markets bought a new position in Karat Packaging in the 4th quarter valued at approximately $231,000. Finally, Jane Street Group LLC bought a new position in Karat Packaging in the 1st quarter valued at approximately $219,000. Hedge funds and other institutional investors own 25.20% of the company's stock.

Analysts Set New Price Targets

Several research firms have recently weighed in on KRT. Bank of America started coverage on Karat Packaging in a report on Wednesday, August 13th. They set a "neutral" rating and a $28.00 price target on the stock. Wall Street Zen lowered Karat Packaging from a "strong-buy" rating to a "buy" rating in a research note on Saturday, August 9th. One research analyst has rated the stock with a Buy rating and three have given a Hold rating to the company's stock. According to data from MarketBeat.com, Karat Packaging has a consensus rating of "Hold" and a consensus target price of $31.67.

Karat Packaging Stock Down 3.3%

Shares of NASDAQ:KRT opened at $23.95 on Friday. The company has a market cap of $481.16 million, a price-to-earnings ratio of 15.06, a PEG ratio of 1.32 and a beta of 1.11. The company has a 50-day moving average price of $26.56 and a 200 day moving average price of $27.53. Karat Packaging Inc. has a 12 month low of $23.00 and a 12 month high of $33.89. The company has a current ratio of 2.68, a quick ratio of 1.40 and a debt-to-equity ratio of 0.29.

Karat Packaging Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Wednesday, August 27th. Stockholders of record on Wednesday, August 20th were given a dividend of $0.45 per share. The ex-dividend date of this dividend was Wednesday, August 20th. This represents a $1.80 dividend on an annualized basis and a dividend yield of 7.5%. Karat Packaging's dividend payout ratio (DPR) is 113.21%.

Insider Activity at Karat Packaging

In other news, CEO Alan Yu sold 112,500 shares of the firm's stock in a transaction that occurred on Friday, June 27th. The shares were sold at an average price of $27.00, for a total transaction of $3,037,500.00. Following the transaction, the chief executive officer directly owned 6,091,305 shares of the company's stock, valued at approximately $164,465,235. This trade represents a 1.81% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Company insiders own 66.20% of the company's stock.

Karat Packaging Profile

Karat Packaging Inc, together with its subsidiaries, engages in the manufacture and distribution of single-use disposable products in plastic, paper, biopolymer-based, and other compostable forms used in various restaurant and foodservice settings. It provides food and take-out containers, bags, tableware, cups, lids, cutlery, straws, specialty beverage ingredients, equipment, gloves, and other products under the Karat Earth brand.

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