Karat Packaging Inc. (NASDAQ:KRT) Sees Large Increase in Short Interest

Karat Packaging Inc. (NASDAQ:KRT) was the target of a large growth in short interest during the month of May. As of May 29th, there was short interest totaling 279,601 shares, a growth of 59.4% from the May 14th total of 175,403 shares. Based on an average daily volume of 125,943 shares, the short-interest ratio is currently 2.2 days. Currently, 3.3% of the shares of the company are short sold.

Analysts Set New Price Targets

Several research firms have recently weighed in on KRT. Wall Street Zen raised Karat Packaging from a “hold” rating to a “buy” rating in a report on Saturday, June 13th. The Goldman Sachs Group downgraded Karat Packaging to a “neutral” rating in a report on Thursday, June 4th. Bank of America set a $24.00 price target on Karat Packaging and gave the company an “underperform” rating in a research report on Friday, March 13th. Zacks Research cut Karat Packaging from a “strong-buy” rating to a “hold” rating in a research report on Tuesday, May 12th. Finally, Weiss Ratings restated a “hold (c+)” rating on shares of Karat Packaging in a research report on Thursday, June 11th. Two investment analysts have rated the stock with a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, the company currently has a consensus rating of “Hold” and an average price target of $31.50.

Institutional Investors Weigh In On Karat Packaging

A number of institutional investors have recently added to or reduced their stakes in KRT. Bank of Montreal Can purchased a new stake in Karat Packaging in the 4th quarter valued at approximately $5,216,000. KTF Investments LLC purchased a new stake in Karat Packaging in the 4th quarter valued at approximately $5,075,000. Polar Asset Management Partners Inc. purchased a new stake in Karat Packaging in the 3rd quarter valued at approximately $5,039,000. Marshall Wace LLP purchased a new stake in Karat Packaging in the 2nd quarter valued at approximately $4,312,000. Finally, CWA Asset Management Group LLC purchased a new stake in Karat Packaging in the 4th quarter valued at approximately $2,398,000. Hedge funds and other institutional investors own 25.20% of the company’s stock.

Karat Packaging Stock Performance

Shares of KRT stock opened at $29.25 on Thursday. The stock has a market capitalization of $583.95 million, a PE ratio of 18.51, a price-to-earnings-growth ratio of 1.48 and a beta of 0.90. Karat Packaging has a 52-week low of $20.61 and a 52-week high of $30.93. The stock’s 50-day moving average price is $28.40 and its 200 day moving average price is $25.95. The company has a quick ratio of 1.15, a current ratio of 2.29 and a debt-to-equity ratio of 0.15.

Karat Packaging (NASDAQ:KRT) last issued its quarterly earnings results on Thursday, May 7th. The company reported $0.34 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.32 by $0.02. The firm had revenue of $116.95 million for the quarter, compared to analysts’ expectations of $112.98 million. Karat Packaging had a return on equity of 19.87% and a net margin of 6.61%. As a group, equities research analysts forecast that Karat Packaging will post 1.78 EPS for the current year.

Karat Packaging Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Thursday, May 28th. Shareholders of record on Thursday, May 21st were issued a $0.45 dividend. This represents a $1.80 dividend on an annualized basis and a yield of 6.2%. The ex-dividend date of this dividend was Thursday, May 21st. Karat Packaging’s payout ratio is currently 113.92%.

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.