Karat Packaging Inc. (NASDAQ:KRT – Get Free Report)’s stock price passed below its 200-day moving average during trading on Friday following a dissappointing earnings announcement. The stock has a 200-day moving average of $36.31 and traded as low as $33.10. Karat Packaging shares last traded at $33.54, with a volume of 689,899 shares changing hands.
The company reported $0.24 EPS for the quarter, missing the consensus estimate of $0.41 by ($0.17). The business had revenue of $134.74 million for the quarter, compared to analyst estimates of $140.33 million. Karat Packaging had a return on equity of 30.62% and a net margin of 10.18%.
Karat Packaging Announces Dividend
The business also recently declared a quarterly dividend, which will be paid on Friday, November 27th. Investors of record on Thursday, November 19th will be paid a $0.47 dividend. The ex-dividend date of this dividend is Thursday, November 19th. This represents a $1.88 annualized dividend and a yield of 5.6%. Karat Packaging’s payout ratio is currently 75.20%.
Key Karat Packaging News
Here are the key news stories impacting Karat Packaging this week:
- Positive Sentiment: Karat said its pipeline continued to strengthen and reported topline growth; new accounts and supply-chain initiatives may support future performance, though margin pressures remain. Karat Packaging Q3 results
- Positive Sentiment: The company also declared a quarterly dividend of $0.47 per share, which may appeal to income-focused investors.
- Negative Sentiment: Third-quarter adjusted EPS was $0.24, below the cited consensus estimate of $0.41, while revenue of $134.74 million missed the $140.33 million estimate. EPS was also down from $0.37 a year earlier. Q3 earnings report
- Negative Sentiment: FY 2026 revenue guidance of $509.8 million–$519.2 million came in below the $524.7 million consensus. Fourth-quarter guidance of $126.0 million–$128.3 million was likewise below the $131.3 million forecast, reinforcing concerns about near-term growth. Q3 deep dive
Wall Street Analysts Forecast Growth
A number of research firms recently commented on KRT. Lake Street Capital restated a “buy” rating and issued a $60.00 price objective on shares of Karat Packaging in a research report on Monday, September 14th. Wall Street Zen upgraded shares of Karat Packaging from a “hold” rating to a “buy” rating in a research note on Saturday, August 15th. Bank of America upped their target price on Karat Packaging from $23.00 to $34.00 and gave the company an “underperform” rating in a research report on Tuesday, July 14th. Finally, Weiss Ratings raised shares of Karat Packaging from a “buy (b-)” rating to a “buy (b)” rating in a research report on Wednesday, August 12th. Three research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and an average target price of $47.00.
Read Our Latest Stock Report on Karat Packaging
Institutional Investors Weigh In On Karat Packaging
Institutional investors have recently made changes to their positions in the company. Ritholtz Wealth Management raised its stake in shares of Karat Packaging by 5.9% in the third quarter. Ritholtz Wealth Management now owns 31,740 shares of the company’s stock valued at $1,668,000 after acquiring an additional 1,777 shares during the period. State of Wyoming acquired a new position in Karat Packaging during the 3rd quarter valued at approximately $342,000. BOKF NA acquired a new stake in Karat Packaging during the 3rd quarter valued at approximately $444,000. Signaturefd LLC boosted its position in Karat Packaging by 126.7% in the 3rd quarter. Signaturefd LLC now owns 1,526 shares of the company’s stock worth $80,000 after purchasing an additional 853 shares in the last quarter. Finally, Inspire Investing LLC grew its position in shares of Karat Packaging by 199.6% during the 3rd quarter. Inspire Investing LLC now owns 61,286 shares of the company’s stock valued at $3,221,000 after acquiring an additional 40,830 shares during the period. Hedge funds and other institutional investors own 25.20% of the company’s stock.
Karat Packaging Stock Performance
The firm’s fifty day moving average is $51.53 and its 200 day moving average is $36.31. The company has a market cap of $668.45 million, a PE ratio of 14.21, a price-to-earnings-growth ratio of 1.46 and a beta of 0.79. The company has a current ratio of 2.25, a quick ratio of 1.25 and a debt-to-equity ratio of 0.13.
Karat Packaging Company Profile
Karat Packaging Inc is a foodservice packaging company that manufactures and distributes disposable products for restaurants, cafés, convenience stores, supermarkets, institutional foodservice providers and other businesses. The company is headquartered in Chino, California, and serves customers primarily across North America through its distribution and manufacturing operations.
Its product portfolio includes paper and plastic cups, food containers, lids, cutlery, straws, gloves, napkins, bags and other supplies used for food preparation, packaging and takeout service.
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