Karat Packaging (NASDAQ:KRT) Shares Gap Down - What's Next?

Karat Packaging Inc. (NASDAQ:KRT - Get Free Report) gapped down before the market opened on Wednesday . The stock had previously closed at $30.96, but opened at $26.96. Karat Packaging shares last traded at $26.53, with a volume of 159,202 shares.

Analysts Set New Price Targets

A number of brokerages have recently issued reports on KRT. Truist Financial raised their price target on shares of 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 shares of Karat Packaging from a "buy" rating to a "strong-buy" rating in a report on Saturday.

Karat Packaging Price Performance

The stock's fifty day moving average price is $28.12 and its 200-day moving average price is $29.24. The firm has a market cap of $530.84 million, a price-to-earnings ratio of 18.89 and a beta of 1.19. The company has a current ratio of 3.12, a quick ratio of 1.82 and a debt-to-equity ratio of 0.29.

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

Karat Packaging Dividend Announcement

The business 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 was Friday, May 16th. This represents a $1.80 annualized dividend and a yield of 6.81%. Karat Packaging's dividend payout ratio (DPR) is presently 120.00%.

Insider Activity at Karat Packaging

In related news, CEO Alan Yu sold 750,000 shares of Karat Packaging 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 sale, the chief executive officer now owns 6,203,805 shares in the company, valued at approximately $167,502,735. This trade represents a 10.79% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. 66.20% of the stock is owned by insiders.

Hedge Funds Weigh In On Karat Packaging

Several institutional investors have recently modified their holdings of KRT. GAMMA Investing LLC grew its stake 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 acquiring an additional 1,453 shares in the last quarter. Deutsche Bank AG grew its stake in shares of Karat Packaging by 773.6% in the fourth quarter. Deutsche Bank AG now owns 1,590 shares of the company's stock worth $48,000 after acquiring an additional 1,408 shares in the last quarter. Comerica Bank grew its stake in shares of Karat Packaging by 107.8% in the fourth quarter. Comerica Bank now owns 5,262 shares of the company's stock worth $159,000 after acquiring an additional 2,730 shares in the last quarter. Wells Fargo & Company MN grew 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 acquiring an additional 955 shares in the last quarter. Finally, Jane Street Group LLC acquired a new position in shares of Karat Packaging in the first quarter worth $219,000. Institutional investors and hedge funds own 25.20% of the company's stock.

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.