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

What Happened

• Cheng Marvin, a 10% owner of Karat Packaging, reported open-market sales totaling 6,000 shares (dispositions) in early September 2026. He sold 4,000 shares on 2026-09-04 and 2,000 shares on 2026-09-08 for aggregate proceeds of roughly $290,500. The 9/4 sale shows a weighted-average price of $48.38 (range $48.25–$48.50); the 9/8 sale was at $48.50 per share. These were sales (not purchases), which are often liquidity events rather than explicit statements about company prospects.

Key Details

• Transactions:
  • 2026-09-04: Sold 4,000 shares, weighted avg price reported $48.38 (sold in multiple trades at $48.25–$48.50), proceeds ≈ $193,500.
  • 2026-09-08: Sold 2,000 shares at $48.50, proceeds = $97,000.
• Total disposed: 6,000 shares for ≈ $290,500.
• Shares owned after transaction: Not disclosed in the supplied Form 4.
• Footnote: The 9/4 price is a weighted average; the seller reports multiple executions at prices between $48.25 and $48.50 and will provide per-trade details on request (see footnote F1).
• Filing timeliness: Form 4 was filed on 2026-09-08 covering the 9/4 and 9/8 trades; this appears to be within the SEC’s two-business-day reporting window (timely).

Context

• As a 10% owner, Cheng Marvin is a major shareholder rather than an ordinary employee trade — such sales can be scheduled liquidity or portfolio rebalancing. Sales do not necessarily indicate negative company outlook; Form 4s are factual reports of transactions, not explanations of motive.