William Blair Predicts Lower Earnings for Karat Packaging

Karat Packaging Inc. (NASDAQ:KRT) – Stock analysts at William Blair decreased their Q1 2025 EPS estimates for Karat Packaging in a research report issued to clients and investors on Thursday, January 2nd. William Blair analyst R. Merkel now expects that the company will earn $0.42 per share for the quarter, down from their previous forecast of $0.45. William Blair currently 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 increased their target price on shares of Karat Packaging from $32.00 to $36.00 and gave the stock a “buy” rating in a report on Wednesday, December 11th.

Karat Packaging Stock Up 1.3 %

Shares of KRT stock opened at $30.24 on Monday. Karat Packaging has a 12-month low of $22.51 and a 12-month high of $33.14. The firm has a fifty day moving average of $30.00 and a 200-day moving average of $27.96. The company has a market capitalization of $605.53 million, a price-to-earnings ratio of 21.60 and a beta of 1.08. The company has a quick ratio of 1.82, a current ratio of 3.12 and a debt-to-equity ratio of 0.29.

Karat Packaging Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, November 29th. Investors of record on Wednesday, November 20th were issued 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 of this dividend was Wednesday, November 20th. This represents a $1.60 annualized dividend and a yield of 5.29%. Karat Packaging’s dividend payout ratio is presently 114.29%.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the business. US Bancorp DE acquired a new stake in Karat Packaging in the third quarter valued at $30,000. Copeland Capital Management LLC acquired a new stake in Karat Packaging in the third quarter valued at $49,000. Nisa Investment Advisors LLC lifted its stake in Karat Packaging by 497.7% in the third quarter. Nisa Investment Advisors LLC now owns 3,676 shares of the company’s stock valued at $95,000 after acquiring an additional 3,061 shares during the last quarter. Rhumbline Advisers lifted its stake in Karat Packaging by 4.4% in the second 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 last quarter. Finally, Kings Path Partners LLC acquired a new stake in Karat Packaging in the third quarter valued at $401,000. Institutional investors and hedge funds own 25.20% of the company’s stock.

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.