Karat Packaging (KRT) 10% Owner Cheng Marvin Sells 4,500 Shares

What Happened
Cheng Marvin, a 10% owner of Karat Packaging, reported the sale of 4,500 shares of the company’s common stock on August 20, 2026. The shares were sold in open-market transactions at a weighted-average price of $47.33 per share, generating about $212,985 in proceeds. This Form 4 reflects the sale of 4,500 shares that had been gifted to his spouse on December 22, 2022.

Key Details

• Transaction date: August 20, 2026 (reported on Form 4 filed Aug 21, 2026) — filing appears timely (next business day).
• Transaction type: Sale (S) — open market/private sale.
• Shares sold: 4,500 at a weighted-average price of $47.33; total proceeds ≈ $212,985.
• Price range footnote: sales occurred at prices between $47.25 and $47.50; the reported $47.33 is a weighted average.
• Ownership after sale: The filing notes the sale was of shares previously gifted to the reporting person's spouse (7,500 gifted on Dec 22, 2022); 4,500 of those were sold, leaving 3,000 of the gifted shares with the spouse. The filing excerpt provided does not state total shares owned by the reporting person after this transaction.
• No 10b5-1 plan, tax-withholding, or late-filing flag was reported in the provided details.

Context

• This is a sale, which is often routine (liquidity or personal reasons) and not necessarily a negative signal about the company.
• The shares sold were held by the reporting person’s spouse as a prior gift — gifts and subsequent spouse sales typically reflect personal transactions rather than insider views on company prospects.
• As a 10% owner (not necessarily an executive transaction), this filing reflects significant ownership status but the sale itself was executed by the spouse.