Short Interest in Karat Packaging Inc. (NASDAQ:KRT) Expands By 7.1%

Karat Packaging Inc. (NASDAQ:KRT) saw a significant growth in short interest during the month of May. As of May 31st, there was short interest totalling 137,700 shares, a growth of 7.1% from the May 15th total of 128,600 shares. Based on an average trading volume of 42,900 shares, the days-to-cover ratio is currently 3.2 days. Currently, 2.0% of the shares of the company are sold short.

Karat Packaging Stock Performance

Shares of KRT opened at $28.57 on Tuesday. Karat Packaging has a 1 year low of $16.90 and a 1 year high of $30.94. The company has a debt-to-equity ratio of 0.30, a current ratio of 3.33 and a quick ratio of 1.69. The stock’s fifty day moving average price is $27.98 and its two-hundred day moving average price is $26.55. The firm has a market cap of $570.83 million, a PE ratio of 19.30 and a beta of 1.07.

Karat Packaging (NASDAQ:KRT) last announced its quarterly earnings data on Thursday, May 9th. The company reported $0.40 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.44 by ($0.04). Karat Packaging had a net margin of 7.31% and a return on equity of 21.94%. The firm had revenue of $95.61 million during the quarter, compared to the consensus estimate of $99.76 million. During the same quarter in the prior year, the firm posted $0.45 earnings per share. On average, equities research analysts forecast that Karat Packaging will post 1.95 EPS for the current year.

Karat Packaging Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, May 24th. Shareholders of record on Friday, May 17th were given a dividend of $0.35 per share. The ex-dividend date was Thursday, May 16th. This represents a $1.40 annualized dividend and a dividend yield of 4.90%. This is an increase from Karat Packaging’s previous quarterly dividend of $0.30. Karat Packaging’s dividend payout ratio is currently 94.59%.

Wall Street Analysts Forecast Growth

A number of brokerages have issued reports on KRT. Truist Financial upped their price objective on Karat Packaging from $24.00 to $33.00 and gave the company a “buy” rating in a research note on Friday, March 15th. Stifel Nicolaus restated a “buy” rating and set a $32.00 price objective (up previously from $30.00) on shares of Karat Packaging in a report on Friday, March 15th.

Hedge Funds Weigh In On Karat Packaging

Large investors have recently made changes to their positions in the stock. McGlone Suttner Wealth Management Inc. bought a new position in Karat Packaging in the 4th quarter worth about $29,000. Copeland Capital Management LLC bought a new position in shares of Karat Packaging in the fourth quarter valued at approximately $31,000. Financial Management Professionals Inc. purchased a new position in Karat Packaging during the fourth quarter valued at approximately $39,000. Tower Research Capital LLC TRC increased its holdings in Karat Packaging by 103.2% during the 4th quarter. Tower Research Capital LLC TRC now owns 1,723 shares of the company’s stock worth $43,000 after acquiring an additional 875 shares during the period. Finally, SG Americas Securities LLC purchased a new stake in Karat Packaging in the 1st quarter worth approximately $115,000. 25.20% of the stock is owned by institutional investors.

Karat Packaging Company Profile

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.