Short Interest in Karat Packaging Inc. (NASDAQ:KRT) Drops By 30.1%

Key Points

• Short interest in Karat Packaging fell 30.1% in March to 147,593 shares (about 2.2% of the stock), leaving a days-to-cover ratio of 1.9 days.
• Karat beat quarterly expectations (EPS $0.34 vs. $0.28; revenue $115.62M) and offers a 6.5% dividend

Karat Packaging Inc. (NASDAQ:KRT - Get Free Report) was the recipient of a significant decrease in short interest during the month of March. As of March 13th, there was short interest totaling 147,593 shares, a decrease of 30.1% from the February 26th total of 211,131 shares. Based on an average daily trading volume, of 77,257 shares, the days-to-cover ratio is currently 1.9 days. Currently, 2.2% of the company's stock are short sold.

Institutional Trading of Karat Packaging

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in KRT. Wellington Management Group LLP purchased a new position in Karat Packaging during the fourth quarter valued at approximately $711,000. Polymer Capital Management US LLC increased its stake in shares of Karat Packaging by 15.3% in the fourth quarter. Polymer Capital Management US LLC now owns 14,421 shares of the company's stock worth $325,000 after purchasing an additional 1,918 shares in the last quarter. Inspire Investing LLC raised its position in shares of Karat Packaging by 13.6% during the 4th quarter. Inspire Investing LLC now owns 20,784 shares of the company's stock valued at $469,000 after purchasing an additional 2,496 shares during the period. Engineers Gate Manager LP raised its position in shares of Karat Packaging by 13.2% during the 4th quarter. Engineers Gate Manager LP now owns 27,167 shares of the company's stock valued at $613,000 after purchasing an additional 3,170 shares during the period. Finally, Polar Asset Management Partners Inc. lifted its stake in shares of Karat Packaging by 57.1% during the 4th quarter. Polar Asset Management Partners Inc. now owns 314,100 shares of the company's stock valued at $7,089,000 after buying an additional 114,204 shares in the last quarter. 25.20% of the stock is owned by hedge funds and other institutional investors.

Karat Packaging Stock Performance

KRT traded down $0.11 during mid-day trading on Friday, reaching $27.60. 62,179 shares of the company traded hands, compared to its average volume of 88,925. The company's fifty day moving average price is $25.34 and its 200-day moving average price is $24.11. The stock has a market capitalization of $550.90 million, a P/E ratio of 17.69, a P/E/G ratio of 1.07 and a beta of 1.09. The company has a quick ratio of 1.13, a current ratio of 2.30 and a debt-to-equity ratio of 0.15. Karat Packaging has a 52-week low of $20.61 and a 52-week high of $32.68.

Karat Packaging (NASDAQ:KRT - Get Free Report) last released its quarterly earnings results on Thursday, March 12th. The company reported $0.34 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.28 by $0.06. The firm had revenue of $115.62 million for the quarter, compared to the consensus estimate of $113.95 million. Karat Packaging had a return on equity of 19.63% and a net margin of 6.73%. On average, sell-side analysts expect that Karat Packaging will post 1.66 EPS for the current year.

Karat Packaging Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Friday, February 27th. Investors of record on Friday, February 20th were issued a $0.45 dividend. The ex-dividend date of this dividend was Friday, February 20th. This represents a $1.80 dividend on an annualized basis and a dividend yield of 6.5%. Karat Packaging's dividend payout ratio (DPR) is presently 115.38%.

Analysts Set New Price Targets

A number of brokerages recently weighed in on KRT. Wall Street Zen upgraded shares of Karat Packaging from a "buy" rating to a "strong-buy" rating in a report on Sunday, March 22nd. Zacks Research raised Karat Packaging from a "hold" rating to a "strong-buy" rating in a report on Friday, March 20th. Weiss Ratings restated a "hold (c+)" rating on shares of Karat Packaging in a research note on Thursday, January 22nd. Finally, Bank of America set a $24.00 price target on Karat Packaging and gave the company an "underperform" rating in a report on Friday, March 13th. One equities research analyst has rated the stock with a Strong Buy rating, two have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the company has an average rating of "Hold" and an average target price of $27.50.

About Karat Packaging

Karat Packaging Technologies, Inc NASDAQ: KRT is a U.S.-based provider of premium packaging solutions for consumer goods and industrial products. The company specializes in the design, manufacture and delivery of high-quality litho-laminated folding cartons, tubes and flexible packaging. Karat Packaging operates an integrated production model that combines prepress, printing, converting and finishing capabilities to support the branding and shelf-appeal needs of its customers.

The company serves a diverse range of end markets, including food and beverage, confectionery, health and beauty, pharmaceuticals, specialty chemicals and promotional packaging.

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