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

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

Institutional Trading of Karat Packaging

Several hedge funds have recently made changes to their positions in the business. State of Alaska Department of Revenue purchased a new position in Karat Packaging during the third quarter worth $27,000. Clearstead Advisors LLC raised its stake in shares of Karat Packaging by 188.8% during the fourth quarter. Clearstead Advisors LLC now owns 1,493 shares of the company’s stock valued at $34,000 after acquiring an additional 976 shares in the last quarter. CWM LLC boosted its holdings in shares of Karat Packaging by 378.4% in the third quarter. CWM LLC now owns 1,641 shares of the company’s stock valued at $41,000 after purchasing an additional 1,298 shares during the period. Quarry LP bought a new position in Karat Packaging in the third quarter worth approximately $70,000. Finally, Deutsche Bank AG increased its holdings in Karat Packaging by 142.8% during the 4th quarter. Deutsche Bank AG now owns 3,861 shares of the company’s stock worth $87,000 after purchasing an additional 2,271 shares during the period. 25.20% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Ratings Changes

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

Karat Packaging Price Performance

Shares of KRT traded down $0.11 during midday trading on Friday, hitting $27.60. 62,179 shares of the company traded hands, compared to its average volume of 88,925. The stock has a market cap of $550.90 million, a price-to-earnings ratio of 17.69, a PEG ratio of 1.07 and a beta of 1.09. The firm has a 50 day moving average of $25.34 and a 200-day moving average of $24.11. The company has a debt-to-equity ratio of 0.15, a quick ratio of 1.13 and a current ratio of 2.30. Karat Packaging has a 52 week low of $20.61 and a 52 week high of $32.68.

Karat Packaging (NASDAQ:KRT) last posted its earnings results on Thursday, March 12th. The company reported $0.34 EPS for the quarter, topping analysts’ consensus estimates of $0.28 by $0.06. Karat Packaging had a return on equity of 19.63% and a net margin of 6.73%.The company had revenue of $115.62 million for the quarter, compared to the consensus estimate of $113.95 million. On average, analysts forecast that Karat Packaging will post 1.66 EPS for the current fiscal year.

Karat Packaging Dividend Announcement

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

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.