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

Shares of Karat Packaging Inc. (NASDAQ:KRT - Get Free Report) saw unusually-strong trading volume on Friday . Approximately 45,493 shares traded hands during 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 Analyst Weigh In

Several equities research analysts have recently weighed in on the company. Truist Financial increased their price target on Karat Packaging from $28.00 to $31.00 and gave the stock a "hold" rating in a report on Monday, May 12th. Wall Street Zen upgraded Karat Packaging from a "buy" rating to a "strong-buy" rating in a research note on Saturday.

Karat Packaging Price Performance

The firm has a market capitalization of $540.07 million, a P/E ratio of 19.21 and a beta of 1.19. The stock's 50 day simple moving average is $28.12 and its 200 day simple moving average is $29.23. The company has a debt-to-equity ratio of 0.29, a quick ratio of 1.82 and a current ratio of 3.12.

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

Karat Packaging Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, May 23rd. Stockholders of record on Friday, May 16th were paid a dividend of $0.45 per share. The ex-dividend date of this dividend was Friday, May 16th. This represents a $1.80 annualized dividend and a dividend yield of 6.69%. Karat Packaging's dividend payout ratio is currently 120.00%.

Insider Activity at Karat Packaging

In related 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 value of $20,250,000.00. Following the completion of the transaction, the chief executive officer now owns 6,203,805 shares of the company's stock, valued at $167,502,735. The trade was a 10.79% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. 66.20% of the stock is currently owned by corporate insiders.

Institutional Trading of Karat Packaging

Hedge funds and other institutional investors have recently made changes to their positions in the business. GAMMA Investing LLC boosted its stake in Karat Packaging by 4,151.4% in the 1st quarter. GAMMA Investing LLC now owns 1,488 shares of the company's stock worth $40,000 after purchasing an additional 1,453 shares in the last quarter. Deutsche Bank AG grew its position in Karat Packaging by 773.6% during 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 during the period. Comerica Bank raised its stake in shares of Karat Packaging by 107.8% during 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 last quarter. Wells Fargo & Company MN boosted its stake in shares of Karat Packaging by 20.8% in the fourth quarter. Wells Fargo & Company MN now owns 5,538 shares of the company's stock worth $168,000 after buying an additional 955 shares during the last quarter. Finally, BNP Paribas Financial Markets acquired a new stake in shares of Karat Packaging during the 4th quarter worth approximately $231,000. Hedge funds and other institutional investors 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.