Karat Packaging (NASDAQ:KRT) Issues Earnings Results

Karat Packaging (NASDAQ:KRT) announced its quarterly earnings results on Thursday. The company reported $0.37 EPS for the quarter, hitting the consensus estimate of $0.37, FiscalAI reports. The company had revenue of $124.52 million during the quarter, compared to analyst estimates of $124.09 million. Karat Packaging had a return on equity of 18.98% and a net margin of 6.67%. Karat Packaging updated its FY 2025 guidance to EPS and its Q4 2025 guidance to EPS.

Karat Packaging Stock Down 6.3%

NASDAQ:KRT traded down $1.50 on Friday, reaching $22.50. The stock had a trading volume of 221,442 shares, compared to its average volume of 115,346. The company has a 50-day moving average of $24.45 and a 200 day moving average of $26.77. The company has a current ratio of 2.68, a quick ratio of 1.40 and a debt-to-equity ratio of 0.29. The stock has a market cap of $452.03 million, a P/E ratio of 15.00, a price-to-earnings-growth ratio of 1.19 and a beta of 1.09. Karat Packaging has a 12-month low of $21.25 and a 12-month high of $33.89.

Karat Packaging Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, November 28th. Shareholders of record on Friday, November 21st will be issued a $0.45 dividend. The ex-dividend date is Friday, November 21st. This represents a $1.80 dividend on an annualized basis and a yield of 8.0%. Karat Packaging’s payout ratio is currently 120.00%.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of KRT. Lazard Asset Management LLC increased its stake in Karat Packaging by 1.9% during the second quarter. Lazard Asset Management LLC now owns 40,390 shares of the company’s stock valued at $1,137,000 after purchasing an additional 770 shares during the last quarter. First Trust Advisors LP grew its position in shares of Karat Packaging by 3.9% during the 2nd quarter. First Trust Advisors LP now owns 22,061 shares of the company’s stock valued at $621,000 after buying an additional 830 shares during the last quarter. State of Tennessee Department of Treasury grew its position in shares of Karat Packaging by 6.7% during the 2nd quarter. State of Tennessee Department of Treasury now owns 18,041 shares of the company’s stock valued at $508,000 after buying an additional 1,138 shares during the last quarter. Rhumbline Advisers raised its stake in Karat Packaging by 14.6% during the third quarter. Rhumbline Advisers now owns 11,437 shares of the company’s stock worth $288,000 after acquiring an additional 1,456 shares during the period. Finally, JPMorgan Chase & Co. boosted its stake in Karat Packaging by 4.8% in the third quarter. JPMorgan Chase & Co. now owns 35,838 shares of the company’s stock valued at $903,000 after acquiring an additional 1,635 shares during the period. Hedge funds and other institutional investors own 25.20% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of analysts recently issued reports on KRT shares. Weiss Ratings downgraded shares of Karat Packaging from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Wednesday, October 8th. Zacks Research raised shares of Karat Packaging from a “strong sell” rating to a “hold” rating in a research report on Monday, October 6th. Bank of America raised shares of Karat Packaging from a “neutral” rating to a “buy” rating and set a $31.00 target price on the stock in a research note on Thursday, October 9th. Finally, Wall Street Zen cut shares of Karat Packaging from a “buy” rating to a “hold” rating in a research report on Saturday. Two investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Hold” and an average target price of $32.67.

About Karat Packaging

Karat Packaging Inc, together with its subsidiaries, engages in the manufacture and distribution of single-use disposable products in plastic, paper, biopolymer-based, and other compostable forms used in various restaurant and foodservice settings. It provides food and take-out containers, bags, tableware, cups, lids, cutlery, straws, specialty beverage ingredients, equipment, gloves, and other products under the Karat Earth brand.