Quadrature Capital Acquires 23,018 Shares in Karat Packaging

Quadrature Capital Ltd has acquired a significant stake in Karat Packaging Inc., purchasing 23,018 shares during the second quarter of 2023. This acquisition, valued at approximately $649,000, marks a notable investment in the company listed on the NASDAQ under the ticker symbol KRT.

Several other institutional investors have also recently adjusted their positions in Karat Packaging. For instance, Copeland Capital Management LLC increased its holdings by 58.3%, now owning 2,083 shares worth around $59,000 after acquiring an additional 767 shares. Similarly, Independent Advisor Alliance boosted its stake by 2.8%, bringing its total to 38,654 shares, valued at $1,027,000 following a purchase of 1,059 shares.

Rhumbline Advisers expanded its holdings in Karat Packaging by 10.3% in the first quarter, now owning 11,668 shares valued at $310,000 after purchasing an additional 1,088 shares. Jacobs Levy Equity Management Inc. increased its stake by 2.2%, now holding 59,768 shares valued at $1,589,000. Martingale Asset Management L P raised its holdings by 13.4%, bringing its total to 12,713 shares worth $338,000.

As a result of these transactions, institutional investors now own 25.20% of Karat Packaging’s stock.

Analysts Adjust Ratings and Price Targets

Recent evaluations from several research firms have resulted in mixed ratings for Karat Packaging. Weiss Ratings downgraded the stock from a “buy (B-)” to a “hold (C+)” on October 8, 2023. Zacks Research also reduced its rating from “hold” to “strong sell” on November 10, 2023. Furthermore, Bank of America lowered its rating from “buy” to “underperform,” adjusting its target price from $27.00 to $22.00 on November 17, 2023. Additionally, Wall Street Zen downgraded the stock from a “buy” to a “hold” rating on November 8, 2023.

Currently, one investment analyst has rated Karat Packaging with a Buy, three have assigned a Hold rating, and two have given it a Sell rating. Based on data from MarketBeat, the consensus rating for the company stands at “Reduce,” with an average target price of $29.67.

Karat Packaging’s Market Performance

As of Tuesday, Karat Packaging’s stock opened at $21.87. The company has seen a 52-week low of $20.61 and a 52-week high of $33.89. Financial metrics indicate a quick ratio of 1.09, a current ratio of 2.14, and a debt-to-equity ratio of 0.14. The company boasts a market capitalization of $439.59 million, a price-to-earnings ratio of 14.58, and a PEG ratio of 1.64.

Karat Packaging recently released its quarterly earnings report on November 6, 2023, reporting earnings per share of $0.37, aligning with analysts’ consensus estimates. The company generated revenue of $124.52 million for the quarter, exceeding expectations of $124.09 million. With a return on equity of 18.98% and a net margin of 6.67%, the firm has projected fiscal year 2025 guidance at similar earnings per share levels.

Dividend Announcement

Karat Packaging has also declared a quarterly dividend of $0.45 per share, which was paid on November 28, 2023. Shareholders of record as of November 21, 2023 received this dividend, translating to an annualized payout of $1.80 and yielding approximately 8.2%. The ex-dividend date was also set for November 21, 2023, with a payout ratio noted at 120.00%.

Karat Packaging Inc. operates in the manufacture and distribution of single-use disposable products made from plastic, paper, biopolymers, and other compostable materials, catering to various foodservice environments. Its product range includes food containers, bags, tableware, and cutlery, marketed under the Karat Earth brand.