Trexquant Investment LP Grows Position in Karat Packaging Inc. $KRT

Key Points

• Trexquant Investment LP increased its stake in Karat Packaging Inc. by 112.3% in the first quarter, owning a total of 24,698 shares valued at approximately $656,000.
• Karat Packaging recently declared a quarterly dividend of $0.45 per share, resulting in an annualized dividend yield of 7.1%.
• Wall Street analysts have a consensus rating of "Hold" on Karat Packaging, with an average target price of $31.67.

Trexquant Investment LP increased its holdings in shares of Karat Packaging Inc. (NASDAQ:KRT - Free Report) by 112.3% during the first quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 24,698 shares of the company's stock after acquiring an additional 13,062 shares during the period. Trexquant Investment LP owned approximately 0.12% of Karat Packaging worth $656,000 as of its most recent SEC filing.

Several other large investors also recently bought and sold shares of the company. American Century Companies Inc. grew its holdings in Karat Packaging by 13.2% in the first quarter. American Century Companies Inc. now owns 212,340 shares of the company's stock valued at $5,644,000 after purchasing an additional 24,791 shares during the last quarter. Dimensional Fund Advisors LP grew its holdings in Karat Packaging by 9.5% in the fourth quarter. Dimensional Fund Advisors LP now owns 145,946 shares of the company's stock valued at $4,416,000 after purchasing an additional 12,676 shares during the last quarter. Russell Investments Group Ltd. grew its holdings in Karat Packaging by 11.8% in the first quarter. Russell Investments Group Ltd. now owns 89,028 shares of the company's stock valued at $2,366,000 after purchasing an additional 9,383 shares during the last quarter. Millennium Management LLC grew its holdings in Karat Packaging by 108.5% in the fourth quarter. Millennium Management LLC now owns 84,038 shares of the company's stock valued at $2,543,000 after purchasing an additional 43,740 shares during the last quarter. Finally, Jacobs Levy Equity Management Inc. grew its holdings in Karat Packaging by 7.6% in the fourth quarter. Jacobs Levy Equity Management Inc. now owns 58,461 shares of the company's stock valued at $1,769,000 after purchasing an additional 4,128 shares during the last quarter. Institutional investors and hedge funds own 25.20% of the company's stock.

Insiders Place Their Bets

In related news, CEO Alan Yu sold 750,000 shares of the stock in a transaction dated Thursday, June 12th. The stock was sold at an average price of $27.00, for a total transaction of $20,250,000.00. Following the transaction, the chief executive officer directly owned 6,203,805 shares in the company, valued at approximately $167,502,735. This represents a 10.79% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Company insiders own 66.10% of the company's stock.

Analyst Upgrades and Downgrades

Several analysts have weighed in on KRT shares. Wall Street Zen lowered Karat Packaging from a "strong-buy" rating to a "buy" rating in a report on Saturday, August 9th. Bank of America started coverage on Karat Packaging in a research report on Wednesday, August 13th. They issued a "neutral" rating and a $28.00 price objective on the stock. One equities research analyst has rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of "Hold" and an average price target of $31.67.

Karat Packaging Trading Down 0.0%

NASDAQ KRT traded down $0.01 during trading hours on Wednesday, hitting $24.47. 76,021 shares of the company's stock were exchanged, compared to its average volume of 61,503. The business's 50 day moving average is $26.84 and its 200-day moving average is $27.66. Karat Packaging Inc. has a 12-month low of $23.00 and a 12-month high of $33.89. The firm has a market capitalization of $491.60 million, a P/E ratio of 15.39, a price-to-earnings-growth ratio of 1.35 and a beta of 1.11. The company has a debt-to-equity ratio of 0.29, a quick ratio of 1.40 and a current ratio of 2.68.

Karat Packaging Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, August 27th. Investors of record on Wednesday, August 20th were given a dividend of $0.45 per share. The ex-dividend date was Wednesday, August 20th. This represents a $1.80 annualized dividend and a yield of 7.4%. Karat Packaging's dividend payout ratio is 113.21%.

About Karat Packaging

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.