Karat Packaging Inc. (NASDAQ:KRT) Receives Consensus Rating of “Reduce” from Brokerages

Shares of Karat Packaging Inc. (NASDAQ:KRT) have been given a consensus recommendation of “Reduce” by the six ratings firms that are presently covering the stock, Marketbeat Ratings reports. Two research analysts have rated the stock with a sell rating, three have issued a hold rating and one has issued a buy rating on the company. The average 12-month price objective among brokers that have issued a report on the stock in the last year is $29.6667.

Several brokerages recently commented on KRT. Wall Street Zen downgraded shares of Karat Packaging from a “buy” rating to a “hold” rating in a research report on Saturday, November 8th. Bank of America cut shares of Karat Packaging from a “buy” rating to an “underperform” rating and cut their price target for the company from $27.00 to $22.00 in a report on Monday, November 17th. Weiss Ratings lowered shares of Karat Packaging from a “buy (b-)” rating to a “hold (c+)” rating in a report on Wednesday, October 8th. Finally, Zacks Research cut Karat Packaging from a “hold” rating to a “strong sell” rating in a research report on Monday, November 10th.

Karat Packaging Stock Performance

Karat Packaging stock opened at $21.12 on Friday. Karat Packaging has a twelve month low of $20.61 and a twelve month high of $33.89. The company has a quick ratio of 1.09, a current ratio of 2.14 and a debt-to-equity ratio of 0.14. The company has a market capitalization of $424.51 million, a P/E ratio of 14.08, a PEG ratio of 1.57 and a beta of 1.09. The stock’s 50 day moving average is $23.79 and its 200 day moving average is $26.45.

Karat Packaging (NASDAQ:KRT) last released its earnings results on Thursday, November 6th. The company reported $0.37 EPS for the quarter, hitting the consensus estimate of $0.37. Karat Packaging had a return on equity of 18.98% and a net margin of 6.67%.The business had revenue of $124.52 million for the quarter, compared to the consensus estimate of $124.09 million. Karat Packaging has set its FY 2025 guidance at EPS. Q4 2025 guidance at EPS. On average, equities research analysts predict that Karat Packaging will post 1.66 earnings per share for the current fiscal year.

Karat Packaging Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, November 28th. Investors of record on Friday, November 21st will be given a dividend of $0.45 per share. The ex-dividend date of this dividend is Friday, November 21st. This represents a $1.80 annualized dividend and a dividend yield of 8.5%. Karat Packaging’s dividend payout ratio (DPR) is 120.00%.

Hedge Funds Weigh In On Karat Packaging

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Jacobs Levy Equity Management Inc. grew its stake in shares of Karat Packaging by 20.0% in the third quarter. Jacobs Levy Equity Management Inc. now owns 91,856 shares of the company’s stock worth $2,316,000 after acquiring an additional 15,331 shares during the period. PharVision Advisers LLC purchased a new stake in Karat Packaging in the third quarter worth approximately $394,000. Polymer Capital Management US LLC grew its position in Karat Packaging by 23.9% in the 3rd quarter. Polymer Capital Management US LLC now owns 12,503 shares of the company’s stock worth $315,000 after purchasing an additional 2,410 shares during the period. Quarry LP bought a new stake in Karat Packaging in the 3rd quarter worth approximately $70,000. Finally, Qube Research & Technologies Ltd lifted its holdings in shares of Karat Packaging by 49.5% during the 3rd quarter. Qube Research & Technologies Ltd now owns 43,940 shares of the company’s stock valued at $1,108,000 after buying an additional 14,556 shares during the period. 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.