Karat Packaging (NASDAQ:KRT) Posts Quarterly Earnings Results, Hits Expectations

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

Karat Packaging Stock Performance

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

Karat Packaging Announces Dividend

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

Wall Street Analyst Weigh In

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

Hedge Funds Weigh In On Karat Packaging

Several institutional investors have recently bought and sold shares of KRT. Jane Street Group LLC purchased a new stake in Karat Packaging in the first quarter worth $219,000. Occudo Quantitative Strategies LP bought a new position in shares of Karat Packaging during the 2nd quarter worth $278,000. Brevan Howard Capital Management LP purchased a new stake in Karat Packaging in the 2nd quarter worth about $322,000. Rhumbline Advisers increased its holdings in Karat Packaging by 14.6% in the 3rd 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 last quarter. Finally, Bank of America Corp DE raised its stake in Karat Packaging by 51.2% in the 2nd quarter. Bank of America Corp DE now owns 12,509 shares of the company’s stock valued at $352,000 after acquiring an additional 4,236 shares during the period. Hedge funds and other institutional investors own 25.20% of the company’s stock.

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.