Karat Packaging (NASDAQ:KRT) Stock Rating Lowered by Wall Street Zen

Key Points

• Wall Street Zen downgraded Karat Packaging from “buy” to “hold.” Across analysts, the stock has an average “hold” rating and a $47 price target.
• Karat’s third-quarter results missed expectations: EPS was $0.24 versus $0.41 forecast, and revenue was $134.74 million versus $140.33 million expected. EPS also fell from $0.37 a year earlier.
• Company revenue guidance came in below consensus: both its 2026 full-year and fourth-quarter ranges were lower than analysts’ forecasts, despite reported topline growth and a strengthening pipeline.

Karat Packaging (NASDAQ:KRT - Get Free Report) was downgraded by stock analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a research report issued on Saturday, Wall Street Zen reports.

KRT has been the subject of a number of other reports. Weiss Ratings upgraded shares of Karat Packaging from a "buy (b-)" rating to a "buy (b)" rating in a research note on Wednesday, August 12th. Bank of America raised their price objective on shares of Karat Packaging from $23.00 to $34.00 and gave the company an "underperform" rating in a research note on Tuesday, July 14th. Finally, Lake Street Capital reaffirmed a "buy" rating and issued a $60.00 price target on shares of Karat Packaging in a research note on Monday, September 14th. Three analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat, Karat Packaging presently has an average rating of "Hold" and an average target price of $47.00.

Karat Packaging Stock Down 34.8%

Shares of KRT opened at $33.54 on Friday. Karat Packaging has a 12 month low of $20.61 and a 12 month high of $56.06. The company has a current ratio of 2.25, a quick ratio of 1.25 and a debt-to-equity ratio of 0.13. The stock has a market capitalization of $668.45 million, a PE ratio of 14.21, a P/E/G ratio of 1.46 and a beta of 0.79. The firm's 50 day moving average is $51.53 and its 200-day moving average is $36.31.

Karat Packaging (NASDAQ:KRT - Get Free Report) last announced its quarterly earnings results on Thursday, November 5th. The company reported $0.24 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.41 by ($0.17). Karat Packaging had a return on equity of 30.62% and a net margin of 10.18%. The firm had revenue of $134.74 million during the quarter, compared to the consensus estimate of $140.33 million. Equities research analysts forecast that Karat Packaging will post 2.63 EPS for the current year.

Institutional Trading of Karat Packaging

Several institutional investors have recently added to or reduced their stakes in the company. Integrated Wealth Concepts LLC acquired a new stake in shares of Karat Packaging in the 2nd quarter valued at about $25,000. USA Financial Formulas bought a new position in Karat Packaging during the third quarter worth about $46,000. Signaturefd LLC increased its holdings in Karat Packaging by 126.7% in the third quarter. Signaturefd LLC now owns 1,526 shares of the company's stock valued at $80,000 after purchasing an additional 853 shares during the period. GK Wealth Management LLC bought a new stake in shares of Karat Packaging during the 3rd quarter worth $106,000. Finally, Legal & General Group Plc bought a new position in shares of Karat Packaging in the second quarter worth approximately $75,000. Institutional investors own 25.20% of the company's stock.

Karat Packaging News Summary

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

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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