William Blair Expects Weaker Earnings for Karat Packaging

Karat Packaging Inc. (NASDAQ:KRT) – Research analysts at William Blair dropped their Q1 2025 earnings estimates for shares of Karat Packaging in a research note issued to investors on Thursday, January 2nd. William Blair analyst R. Merkel now forecasts that the company will earn $0.42 per share for the quarter, down from their previous estimate of $0.45. William Blair has a “Market Perform” rating on the stock. The consensus estimate for Karat Packaging’s current full-year earnings is $1.66 per share. William Blair also issued estimates for Karat Packaging’s Q2 2025 earnings at $0.52 EPS, Q3 2025 earnings at $0.49 EPS, Q4 2025 earnings at $0.37 EPS and FY2025 earnings at $1.80 EPS.

Separately, Stifel Nicolaus upped their price target on shares of Karat Packaging from $32.00 to $36.00 and gave the company a “buy” rating in a report on Wednesday, December 11th.

Karat Packaging Stock Down 2.9 %

NASDAQ:KRT opened at $28.89 on Monday. The company has a debt-to-equity ratio of 0.29, a current ratio of 3.12 and a quick ratio of 1.82. The company’s fifty day moving average price is $30.10 and its 200-day moving average price is $27.97. Karat Packaging has a 1-year low of $22.51 and a 1-year high of $33.14. The firm has a market capitalization of $578.49 million, a P/E ratio of 20.64 and a beta of 1.08.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Rhumbline Advisers grew its position in shares of Karat Packaging by 4.4% during the 2nd quarter. Rhumbline Advisers now owns 9,203 shares of the company’s stock valued at $272,000 after acquiring an additional 387 shares during the period. Charles Schwab Investment Management Inc. grew its holdings in Karat Packaging by 5.6% in the third quarter. Charles Schwab Investment Management Inc. now owns 19,720 shares of the company’s stock valued at $511,000 after purchasing an additional 1,053 shares during the period. Janney Montgomery Scott LLC increased its position in shares of Karat Packaging by 4.2% in the third quarter. Janney Montgomery Scott LLC now owns 28,488 shares of the company’s stock valued at $738,000 after buying an additional 1,148 shares in the last quarter. US Bancorp DE acquired a new position in shares of Karat Packaging during the 3rd quarter worth approximately $30,000. Finally, Ellsworth Advisors LLC lifted its position in shares of Karat Packaging by 6.8% during the 3rd quarter. Ellsworth Advisors LLC now owns 21,783 shares of the company’s stock valued at $564,000 after buying an additional 1,381 shares in the last quarter. Hedge funds and other institutional investors own 25.20% of the company’s stock.

Karat Packaging Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, November 29th. Stockholders of record on Wednesday, November 20th were paid a dividend of $0.40 per share. This is a boost from Karat Packaging’s previous quarterly dividend of $0.35. The ex-dividend date was Wednesday, November 20th. This represents a $1.60 dividend on an annualized basis and a dividend yield of 5.54%. Karat Packaging’s dividend payout ratio (DPR) is presently 114.29%.

Karat Packaging Company Profile

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.