Karat Packaging (NASDAQ:KRT) Sees Strong Trading Volume - Time to Buy?

Karat Packaging Inc. (NASDAQ:KRT - Get Free Report) shares saw unusually-high trading volume on Friday . Approximately 45,493 shares were traded during mid-day trading, an increase of 3% from the previous session's volume of 44,152 shares.The stock last traded at $26.30 and had previously closed at $26.68.

Wall Street Analysts Forecast Growth

KRT has been the subject of a number of research analyst reports. Wall Street Zen lowered shares of Karat Packaging from a "strong-buy" rating to a "buy" rating in a research note on Friday, June 6th. Truist Financial upped their price target on shares of Karat Packaging from $28.00 to $31.00 and gave the stock a "hold" rating in a research note on Monday, May 12th.

Karat Packaging Price Performance

The company has a current ratio of 3.12, a quick ratio of 1.82 and a debt-to-equity ratio of 0.29. The business's fifty day moving average is $28.12 and its 200 day moving average is $29.25. The firm has a market capitalization of $530.39 million, a P/E ratio of 18.89 and a beta of 1.19.

Karat Packaging (NASDAQ:KRT - Get Free Report) last released its earnings results on Thursday, March 13th. The company reported $0.29 EPS for the quarter, missing analysts' consensus estimates of $0.43 by ($0.14). Karat Packaging had a return on equity of 19.84% and a net margin of 6.78%. The business had revenue of $101.65 million during the quarter, compared to the consensus estimate of $102.27 million. As a group, analysts forecast that Karat Packaging Inc. will post 1.66 EPS for the current year.

Karat Packaging Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, May 23rd. Investors of record on Friday, May 16th were issued a $0.45 dividend. The ex-dividend date of this dividend was Friday, May 16th. This represents a $1.80 dividend on an annualized basis and a dividend yield of 6.81%. Karat Packaging's payout ratio is currently 120.00%.

Insider Activity

In other news, CEO Alan Yu sold 750,000 shares of the business's stock in a transaction that occurred on Thursday, June 12th. The shares were sold at an average price of $27.00, for a total transaction of $20,250,000.00. Following the sale, the chief executive officer now owns 6,203,805 shares in the company, valued at $167,502,735. The trade was a 10.79% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 66.20% of the stock is owned by company insiders.

Institutional Investors Weigh In On Karat Packaging

Large investors have recently made changes to their positions in the company. GAMMA Investing LLC raised its holdings in shares of Karat Packaging by 4,151.4% during the first quarter. GAMMA Investing LLC now owns 1,488 shares of the company's stock valued at $40,000 after acquiring an additional 1,453 shares during the period. Deutsche Bank AG increased its stake in Karat Packaging by 773.6% in the 4th quarter. Deutsche Bank AG now owns 1,590 shares of the company's stock valued at $48,000 after buying an additional 1,408 shares during the period. Comerica Bank increased its stake 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 buying an additional 2,730 shares during the period. Wells Fargo & Company MN increased its stake in Karat Packaging by 20.8% in the 4th quarter. Wells Fargo & Company MN now owns 5,538 shares of the company's stock valued at $168,000 after buying an additional 955 shares during the period. Finally, Jane Street Group LLC acquired a new position in Karat Packaging in the 1st quarter valued at approximately $219,000. Institutional investors and hedge funds own 25.20% of the company's stock.

Karat Packaging Company 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.