[Form 4] Karat Packaging Inc. Insider Trading Activity
Filing Impact
Filing Sentiment
Form Type
4
Rhea-AI Filing Summary
Karat Packaging Inc. director Eric K. Chen acquired 1,000 shares of common stock on May 7, 2026 through the vesting and conversion of restricted stock units (RSUs). This was an exercise of derivative securities at a price of $0.00 per share, reflecting stock-based compensation rather than an open-market purchase.
These 1,000 vested RSUs each converted into one share of common stock, consistent with the grant terms. After this transaction, Chen directly holds 7,000 shares of Karat Packaging common stock. The RSUs stem from a grant of 2,000 RSUs awarded on May 7, 2024, scheduled to vest in two equal annual installments beginning May 7, 2025.
Positive
- None.
Negative
- None.
Insider Trade Summary
1,000 shares exercised/converted
Mixed
2 txns
Insider
Chen Eric K
Role
null
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Exercise | Restricted Stock Units | 1,000 | $0.00 | -- |
| Exercise | Common Stock | 1,000 | $0.00 | -- |
Holdings After Transaction:
Restricted Stock Units — 0 shares (Direct, null);
Common Stock — 7,000 shares (Direct, null)
Footnotes (1)
- Represents shares of Karat Packaging Inc.'s common stock received upon the vesting of restricted stock units ("RSUs"). Each RSU represents a contingent right to receive one share of Karat Packaging Inc.'s common stock. On May 7, 2024, the reporting person was granted 2,000 RSUs. These RSUs were scheduled to vest in two equal, annual installments beginning on May 7, 2025.
Key Figures
Shares acquired via RSU vesting: 1,000 shares
Holdings after transaction: 7,000 shares
Original RSU grant size: 2,000 RSUs
+2 more
5 metrics
Shares acquired via RSU vesting
1,000 shares
Common stock received on May 7, 2026
Holdings after transaction
7,000 shares
Total common stock directly held by Eric K. Chen
Original RSU grant size
2,000 RSUs
Grant made on May 7, 2024 in two annual installments
Exercise/transaction price
$0.00 per share
Price for common shares received from RSU vesting
Derivative exercise transactions
1 transaction, 1,000 shares
Exercise or conversion of derivative security (RSUs)
Key Terms
Restricted Stock Units, RSUs, derivative security, vest
4 terms
Restricted Stock Units financial
"Represents shares of Karat Packaging Inc.'s common stock received upon the vesting of restricted stock units ("RSUs")."
Restricted stock units are a type of company reward where employees are promised shares of stock, but they only fully own these shares after meeting certain conditions, like staying with the company for a set time. They matter because they can become valuable assets and are often used to motivate employees to help the company succeed.
RSUs financial
"Each RSU represents a contingent right to receive one share of Karat Packaging Inc.'s common stock."
RSUs, or restricted stock units, are a form of company shares given to employees as part of their compensation. They are typically awarded with certain restrictions, such as a waiting period before they can be fully owned or sold, similar to earning a gift that becomes fully yours over time. For investors, RSUs can impact a company's stock offerings and reflect how much the company relies on stock-based incentives to attract and retain talent.
derivative security financial
"transaction_code_description": "Exercise or conversion of derivative security""
A derivative security is a financial contract whose value comes from the price or performance of something else, such as a stock, bond, commodity, or market index. For investors it acts like an insurance policy or a wager: it can be used to protect against losses, lock in prices, or amplify gains and losses, so it can change a portfolio’s risk and potential return without owning the underlying asset directly.
vest financial
"These RSUs were scheduled to vest in two equal, annual installments beginning on May 7, 2025."
A vest is the process by which an employee earns the right to receive certain benefits or ownership interests, such as stock or retirement funds, over time. It’s similar to earning a reward gradually, ensuring that the benefit becomes fully yours only after a set period or meeting specific conditions. This makes it important for investors because it determines when they can actually claim or use those benefits.
