Short Interest in Karat Packaging Inc. (NASDAQ:KRT) Grows By 59.4%

Karat Packaging Inc. (NASDAQ:KRT) was the recipient of a large growth in short interest in 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 trading volume of 125,943 shares, the days-to-cover ratio is presently 2.2 days. Currently, 3.3% of the company’s stock are sold short.

Karat Packaging Stock Up 0.4%

KRT traded up $0.11 during trading on Tuesday, reaching $30.04. 46,278 shares of the stock traded hands, compared to its average volume of 82,334. The stock’s 50-day simple moving average is $28.33 and its two-hundred day simple moving average is $25.85. The company has a debt-to-equity ratio of 0.15, a current ratio of 2.29 and a quick ratio of 1.15. Karat Packaging has a fifty-two week low of $20.61 and a fifty-two week high of $30.93. The stock has a market cap of $599.68 million, a price-to-earnings ratio of 19.02, a price-to-earnings-growth ratio of 1.50 and a beta of 0.90.

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

Karat Packaging Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, May 28th. Investors of record on Thursday, May 21st were paid a $0.45 dividend. The ex-dividend date of this dividend was Thursday, May 21st. This represents a $1.80 annualized dividend and a dividend yield of 6.0%. Karat Packaging’s payout ratio is presently 113.92%.

Hedge Funds Weigh In On Karat Packaging

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Clearstead Advisors LLC grew its position in Karat Packaging by 188.8% in the fourth quarter. Clearstead Advisors LLC now owns 1,493 shares of the company’s stock worth $34,000 after acquiring an additional 976 shares in the last quarter. CWM LLC raised its holdings in shares of Karat Packaging by 61.5% during the 4th quarter. CWM LLC now owns 2,651 shares of the company’s stock valued at $60,000 after purchasing an additional 1,010 shares in the last quarter. Quarry LP acquired a new stake in shares of Karat Packaging in the 3rd quarter valued at $70,000. Deutsche Bank AG lifted its stake in shares of Karat Packaging by 142.8% in the 4th quarter. Deutsche Bank AG now owns 3,861 shares of the company’s stock valued at $87,000 after purchasing an additional 2,271 shares during the last quarter. Finally, State of Wyoming bought a new stake in Karat Packaging in the fourth quarter worth $122,000. Institutional investors own 25.20% of the company’s stock.

Wall Street Analysts Forecast Growth

Several equities analysts have weighed in on the company. Lake Street Capital reaffirmed a “buy” rating and set a $39.00 target price on shares of Karat Packaging in a research note on Friday, May 8th. The Goldman Sachs Group cut shares of Karat Packaging to a “neutral” rating in a report on Thursday, June 4th. Wall Street Zen raised shares of Karat Packaging from a “hold” rating to a “buy” rating in a research report on Saturday. William Blair upgraded shares of Karat Packaging from a “market perform” rating to an “outperform” rating in a research note on Thursday, June 4th. Finally, Bank of America set a $24.00 target price on shares of Karat Packaging and gave the stock an “underperform” rating in a research report on Friday, March 13th. Two equities research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock has an average rating of “Hold” and a consensus target price of $31.50.

Karat Packaging Company Profile

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.