Karat Packaging Inc. (KRT) Stock

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Contributor, Benzinga
September 3, 2021
$27.27
-0.46[-1.66%]
Last update: 4:00PM (Delayed 15-Minutes)
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Open27.750Close27.270
Vol / Avg.61.862K / 50.223KMkt Cap544.637M
Day Range26.955 - 28.12752 Wk Range13.010 - 30.940

Karat Packaging Inc. (NASDAQ: KRT), a manufacturer and distributor of eco-friendly food service products, had its IPO on April 15, 2021. The California-based company has been around since 2004 and plans to use the IPO funds for expansion and to pay off debt.

Are you thinking about buying shares of Karat Packaging Inc. (NASDAQ: KRT)? Keep reading to learn how to buy shares of this innovative company.

Karat Packaging Financial History

You can't dive into a ton of financial history on Karat Packaging Inc. (NASDAQ: KRT) since it just went public. However, in 2018, the company had around $175 million in revenue and employed over 500 people by 2019. Karat Packaging sold 3.95 million shares during its IPO, raising over $60 million.

Karat Packaging Potential

Karat Packaging Inc. (NASDAQ: KRT) had a successful IPO, rising by over 15% in value. The company’s focus on producing eco-friendly food service products will attract a lot of millennial retail investor interest. Watch for this stock to potentially make further gains. That being said, if the market significantly corrects from all-time highs, watch for Karat Packaging to break below its IPO price. 

How to Buy Karat Packaging Inc. IPO (KRT) Stock

Karat Packaging Inc. (NASDAQ: KRT) had a successful debut on the NASDAQ exchange on April 15. By the end of the trading day, shares had risen over 15%. If you want to get in on this hot stock, you need to set up your own brokerage account with one of the best online stock brokers

Step-by-step Guide:

  1. Pick a brokerage.

    To buy shares of Karat Packaging, you first need to pick a brokerage to open an account. Begin your search by defining your trading type. To do this, consider your investing time horizon, your income and your risk tolerance.

    Once you define your goals, start the brokerage search process. Consider choosing a brokerage that offers paper trading if you're just learning how to invest, which allows you to trade with fake money.

    Finally, keep in mind that many brokerages offer promotional offers. If you take advantage of these, you may end up with free trading funds or free stocks.

  2. Decide how many shares you want.

    Once you choose a brokerage, you next need to decide how many shares of Karat Packaging you want to buy. Take a look at how much money you have set aside for investing and look at the current share price of Karat. Then, determine the percentage of your funds that you want to tie up in the company.

    You should never put more than a few percent of your account value into any one stock. This is especially true for a high-flying IPO like Karat Packaging. Stay conservative here and consider diversifying into other stocks

  3. Choose your order type.

    Next, choose which order type you want to use to buy shares of Karat Packaging Inc. (NASDAQ: KRT). If you use a market order, your broker will fill the order almost instantly at the National Best Bid and Offer (NBBO) price. Accordingly, market orders are prone to price slippage, especially when used for more volatile stocks.

    On the other hand, using a limit order allows you to set a maximum price you're willing to pay for a stock. As a result, it may take longer to fill your order, but you won't experience price slippage. Using a limit order to buy a new IPO such as Karat Packaging may be a smarter move.

  4. Execute your trade. 

    Once you settle on an order type, you just have to execute your trade. Simply hit the “buy” button and wait for your broker to execute your order. Once the order fills, you will see your shares of Karat Packaging Inc. (NASDAQ: KRT) appear in your brokerage account.

Best Online Stock Brokers

Below is a list of best brokers for your consideration.

To Buy or Not to Buy?

Karat Packaging Inc. (NASDAQ: KRT) had a successful IPO today on the NASDAQ exchange. By the end of the trading day, shares had risen more than 15%. With the increased focus on the environment now that the Democrats control Washington, D.C., Karat Packaging Inc. could see further growth in 2021 and beyond.