Karat Packaging Inc. (NASDAQ:KRT) Sees Large Increase in Short Interest

Key Points

• Karat Packaging Inc. experienced a 100% increase in short interest in September 2023, with 250,000 shares shorted by the end of the month.
• Analyst ratings for KRT show mixed views, with Zacks upgrading it to a "hold" while Bank of America set a target price of $31.00 after upgrading it to "buy."
• The company recently paid a $0.45 quarterly dividend, representing a 7.1% yield, despite having a high dividend payout ratio of 113.21%.

Karat Packaging Inc. (NASDAQ:KRT - Get Free Report) was the target of a significant increase in short interest in the month of September. As of September 30th, there was short interest totaling 250,000 shares, an increase of 100.0% from the September 15th total of 125,000 shares. Approximately 2.9% of the shares of the stock are short sold. Based on an average daily trading volume, of 84,600 shares, the days-to-cover ratio is currently 3.0 days. Based on an average daily trading volume, of 84,600 shares, the days-to-cover ratio is currently 3.0 days. Approximately 2.9% of the shares of the stock are short sold.

Analyst Ratings Changes

KRT has been the subject of several research reports. Zacks Research upgraded Karat Packaging from a "strong sell" rating to a "hold" rating in a report on Monday, October 6th. Wall Street Zen cut Karat Packaging from a "strong-buy" rating to a "buy" rating in a research report on Saturday, August 9th. Bank of America upgraded Karat Packaging from a "neutral" rating to a "buy" rating and set a $31.00 target price on the stock in a report on Thursday, October 9th. Finally, Weiss Ratings lowered Karat Packaging from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Wednesday, October 8th. Two analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. According to MarketBeat, the company presently has an average rating of "Hold" and a consensus price target of $32.67.

Karat Packaging Price Performance

Shares of Karat Packaging stock traded up $0.21 during trading on Monday, reaching $25.36. 138,588 shares of the company's stock were exchanged, compared to its average volume of 113,475. The company has a market cap of $509.48 million, a P/E ratio of 15.95, a PEG ratio of 1.33 and a beta of 1.09. Karat Packaging has a 1-year low of $22.96 and a 1-year high of $33.89. The company has a debt-to-equity ratio of 0.29, a quick ratio of 1.40 and a current ratio of 2.68. The firm's 50-day moving average price is $24.74 and its 200 day moving average price is $26.77.

Karat Packaging Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, August 27th. Stockholders of record on Wednesday, August 20th were paid a $0.45 dividend. The ex-dividend date of this dividend was Wednesday, August 20th. This represents a $1.80 annualized dividend and a dividend yield of 7.1%. Karat Packaging's dividend payout ratio is 113.21%.

Hedge Funds Weigh In On Karat Packaging

Institutional investors have recently modified their holdings of the business. GAMMA Investing LLC increased its position in shares of Karat Packaging by 4,151.4% in the first quarter. GAMMA Investing LLC now owns 1,488 shares of the company's stock worth $40,000 after purchasing an additional 1,453 shares during the last quarter. CWM LLC boosted its position in shares of Karat Packaging by 378.4% in the 3rd quarter. CWM LLC now owns 1,641 shares of the company's stock worth $41,000 after purchasing an additional 1,298 shares in the last quarter. Copeland Capital Management LLC boosted its position in shares of Karat Packaging by 58.3% in the 2nd quarter. Copeland Capital Management LLC now owns 2,083 shares of the company's stock worth $59,000 after purchasing an additional 767 shares in the last quarter. Jane Street Group LLC purchased a new position in Karat Packaging in the 1st quarter worth approximately $219,000. Finally, DAVENPORT & Co LLC purchased a new stake in Karat Packaging during the 2nd quarter valued at $259,000. 25.20% of the stock is owned by institutional investors.

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.

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