Wellington Management Group LLP Has $7.25 Million Stock Holdings in Karat Packaging Inc. $KRT

Key Points

• Wellington Management Group LLP sold 73,427 shares of Karat Packaging Inc., reducing its holdings by 21.2%, and now owns 272,733 shares valued at approximately $7.25 million.
• Karat Packaging recently announced a quarterly dividend of $0.45 per share, resulting in an annual yield of 7.0%, although its payout ratio stands at 113.21%.
• Several institutional investors have increased their positions in Karat Packaging, with Millennium Management boosting its stake by 108.5% in the last quarter.

Wellington Management Group LLP decreased its holdings in Karat Packaging Inc. (NASDAQ:KRT - Free Report) by 21.2% during the 1st quarter, according to the company in its most recent filing with the SEC. The fund owned 272,733 shares of the company's stock after selling 73,427 shares during the period. Wellington Management Group LLP owned approximately 1.36% of Karat Packaging worth $7,249,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors also recently modified their holdings of the company. GAMMA Investing LLC increased its stake in shares of Karat Packaging by 4,151.4% in the 1st quarter. GAMMA Investing LLC now owns 1,488 shares of the company's stock valued at $40,000 after purchasing an additional 1,453 shares during the last quarter. Janney Montgomery Scott LLC increased its stake in shares of Karat Packaging by 8.5% in the 1st quarter. Janney Montgomery Scott LLC now owns 37,599 shares of the company's stock valued at $999,000 after purchasing an additional 2,933 shares during the last quarter. Citadel Advisors LLC increased its stake in shares of Karat Packaging by 91.1% in the 4th quarter. Citadel Advisors LLC now owns 34,344 shares of the company's stock valued at $1,039,000 after purchasing an additional 16,371 shares during the last quarter. Northern Trust Corp increased its stake in shares of Karat Packaging by 5.2% in the 4th quarter. Northern Trust Corp now owns 56,330 shares of the company's stock valued at $1,705,000 after purchasing an additional 2,762 shares during the last quarter. Finally, Bank of America Corp DE increased its stake in shares of Karat Packaging by 15.9% in the 4th quarter. Bank of America Corp DE now owns 9,550 shares of the company's stock valued at $289,000 after purchasing an additional 1,307 shares during the last quarter. Institutional investors own 25.20% of the company's stock.

Analyst Ratings Changes

Several equities analysts have recently issued reports on KRT shares. Truist Financial lifted their price target on Karat Packaging from $28.00 to $31.00 and gave the company a "hold" rating in a research note on Monday, May 12th. Wall Street Zen lowered Karat Packaging from a "strong-buy" rating to a "buy" rating in a research report on Saturday, August 9th. Finally, Bank of America assumed coverage on Karat Packaging in a research report on Wednesday, August 13th. They set a "neutral" rating and a $28.00 price objective on the stock. One research analyst has rated the stock with a Buy rating and three have given a Hold rating to the company. According to MarketBeat, Karat Packaging presently has an average rating of "Hold" and an average price target of $31.67.

Insider Buying and Selling

In other Karat Packaging news, CEO Alan Yu sold 750,000 shares of Karat Packaging 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 of the company's stock, valued at approximately $167,502,735. The trade was a 10.79% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Insiders own 66.10% of the company's stock.

Karat Packaging Trading Down 1.4%

KRT traded down $0.36 during midday trading on Monday, hitting $25.28. 47,333 shares of the company were exchanged, compared to its average volume of 79,175. The firm has a market capitalization of $507.88 million, a P/E ratio of 15.90, a P/E/G ratio of 1.35 and a beta of 1.11. Karat Packaging Inc. has a 1-year low of $23.00 and a 1-year high of $33.89. The firm's 50 day moving average price is $27.21 and its 200-day moving average price is $27.97. The company has a quick ratio of 1.40, a current ratio of 2.68 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. Shareholders of record on Wednesday, August 20th were issued a dividend of $0.45 per share. The ex-dividend date of this dividend was Wednesday, August 20th. This represents a $1.80 annualized dividend and a yield of 7.1%. Karat Packaging's payout ratio is presently 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.