Karat Packaging (NASDAQ:KRT) Stock Rating Lowered by Wall Street Zen

Key Points

• Karat Packaging's stock rating was downgraded from "strong-buy" to "buy" by Wall Street Zen, reflecting a shift in analyst sentiment.
• Truist Financial increased its price target for Karat Packaging from $28 to $31 while maintaining a "hold" rating on the stock.
• CEO Alan Yu sold 750,000 shares of the company's stock, reducing his ownership by approximately 10.79%, which raised concerns among investors about insider confidence.

Karat Packaging (NASDAQ:KRT - Get Free Report) was downgraded by equities research analysts at Wall Street Zen from a "strong-buy" rating to a "buy" rating in a research report issued to clients and investors on Saturday.

Separately, Truist Financial lifted their price target on 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 Trading Down 6.3%

Shares of KRT opened at $25.06 on Friday. The business's 50-day moving average price is $28.19 and its 200 day moving average price is $28.55. The stock has a market capitalization of $503.20 million, a P/E ratio of 15.76 and a beta of 1.11. Karat Packaging has a 1-year low of $23.00 and a 1-year high of $33.89. The company has a current ratio of 2.86, a quick ratio of 1.53 and a debt-to-equity ratio of 0.29.

Insiders Place Their Bets

In other Karat Packaging news, CEO Alan Yu sold 750,000 shares of Karat Packaging stock in a transaction dated Thursday, June 12th. The stock was sold at an average price of $27.00, for a total transaction of $20,250,000.00. Following the transaction, the chief executive officer owned 6,203,805 shares of the company's stock, valued at $167,502,735. The trade was a 10.79% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. 66.20% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Karat Packaging

Institutional investors and hedge funds have recently bought and sold shares of the business. GAMMA Investing LLC lifted its holdings in shares of Karat Packaging by 4,151.4% during the 1st quarter. GAMMA Investing LLC now owns 1,488 shares of the company's stock valued at $40,000 after buying an additional 1,453 shares during the last quarter. Deutsche Bank AG increased its holdings in 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 buying an additional 1,408 shares during the last quarter. Copeland Capital Management LLC increased its holdings in Karat Packaging by 58.3% in the second quarter. Copeland Capital Management LLC now owns 2,083 shares of the company's stock worth $59,000 after buying an additional 767 shares during the last quarter. Comerica Bank increased its holdings in 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 buying an additional 2,730 shares during the last quarter. Finally, Wells Fargo & Company MN increased its holdings in 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. 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.

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