Karat Packaging (NASDAQ:KRT) Shares Gap Down - Here's What Happened

Karat Packaging Inc. (NASDAQ:KRT - Get Free Report)'s share price gapped down prior to trading 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 traded.

Analysts Set New Price Targets

KRT has been the subject of several analyst reports. Wall Street Zen cut shares of Karat Packaging from a "strong-buy" rating to a "buy" rating in a research note on Friday, June 6th. Truist Financial increased their target price 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 Stock Up 1.1%

The company has a debt-to-equity ratio of 0.29, a current ratio of 3.12 and a quick ratio of 1.82. The business's 50 day moving average price is $28.03 and its 200 day moving average price is $29.31. The firm has a market cap of $535.20 million, a PE ratio of 19.06 and a beta of 1.19.

Karat Packaging (NASDAQ:KRT - Get Free Report) last announced 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 net margin of 6.78% and a return on equity of 19.84%. The firm had revenue of $101.65 million for the quarter, compared to analyst estimates of $102.27 million. On average, equities research analysts expect that Karat Packaging Inc. will post 1.66 earnings per share for the current year.

Karat Packaging Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, May 23rd. Shareholders 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 yield of 6.75%. Karat Packaging's payout ratio is currently 120.00%.

Institutional Investors Weigh In On Karat Packaging

A number of large investors have recently modified their holdings of the business. Rhumbline Advisers increased its holdings in shares of Karat Packaging by 10.3% in the first quarter. Rhumbline Advisers now owns 11,668 shares of the company's stock valued at $310,000 after purchasing an additional 1,088 shares during the last quarter. Strs Ohio acquired a new position in Karat Packaging in the 1st quarter valued at about $260,000. Acadian Asset Management LLC grew its stake in shares of Karat Packaging by 9.0% in the 1st quarter. Acadian Asset Management LLC now owns 245,734 shares of the company's stock valued at $6,529,000 after buying an additional 20,262 shares during the period. Jane Street Group LLC purchased a new stake in shares of Karat Packaging in the 1st quarter valued at approximately $219,000. Finally, Goldman Sachs Group Inc. increased its holdings in shares of Karat Packaging by 19.6% during the 1st quarter. Goldman Sachs Group Inc. now owns 28,565 shares of the company's stock worth $759,000 after buying an additional 4,684 shares during the last quarter. Hedge funds and other institutional investors 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.