Karat Packaging (NASDAQ:KRT) Share Price Crosses Below Two Hundred Day Moving Average After Earnings Miss

Key Points

• Karat Packaging’s third-quarter results missed estimates: EPS was $0.24 versus $0.41 expected, and revenue was $134.74 million versus $140.33 million expected. The company’s full-year and fourth-quarter revenue guidance also came in below analyst forecasts.
• After the earnings announcement, shares fell below their 200-day moving average of $36.31, reaching a low of $33.10 and last trading at $33.54.
• The company declared a quarterly dividend of $0.47 per share ($1.88 annualized), representing a reported 5.6% yield.

Karat Packaging Inc. (NASDAQ:KRT - Get Free Report) shares crossed below its two hundred day moving average during trading on Friday following a dissappointing earnings announcement. The stock has a two hundred day moving average of $36.31 and traded as low as $33.10. Karat Packaging shares last traded at $33.54, with a volume of 689,899 shares.

The company reported $0.24 EPS for the quarter, missing the consensus estimate of $0.41 by ($0.17). The business had revenue of $134.74 million during the quarter, compared to analyst estimates of $140.33 million. Karat Packaging had a net margin of 10.18% and a return on equity of 30.62%.

Karat Packaging Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, November 27th. Investors of record on Thursday, November 19th will be paid a dividend of $0.47 per share. This represents a $1.88 dividend on an annualized basis and a dividend yield of 5.6%. The ex-dividend date is Thursday, November 19th. Karat Packaging's payout ratio is currently 75.20%.

More Karat Packaging News

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

Wall Street Analysts Forecast Growth

A number of equities analysts recently issued reports on KRT shares. Bank of America increased their target price on shares of Karat Packaging from $23.00 to $34.00 and gave the company an "underperform" rating in a research report on Tuesday, July 14th. Wall Street Zen upgraded shares of Karat Packaging from a "hold" rating to a "buy" rating in a research report on Saturday, August 15th. 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. Finally, Weiss Ratings upgraded shares of Karat Packaging from a "buy (b-)" rating to a "buy (b)" rating in a report on Wednesday, August 12th. Three analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, Karat Packaging has an average rating of "Hold" and an average target price of $47.00.

Institutional Trading of Karat Packaging

Institutional investors have recently modified their holdings of the company. Integrated Wealth Concepts LLC purchased a new stake in Karat Packaging during the second quarter valued at about $25,000. USA Financial Formulas acquired a new position in shares of Karat Packaging in the third quarter worth about $46,000. Signaturefd LLC boosted its holdings in shares of Karat Packaging by 126.7% in the third quarter. Signaturefd LLC now owns 1,526 shares of the company's stock worth $80,000 after buying an additional 853 shares during the period. GK Wealth Management LLC purchased a new position in shares of Karat Packaging in the third quarter worth approximately $106,000. Finally, Legal & General Group Plc purchased a new position in shares of Karat Packaging in the second quarter worth approximately $75,000. Institutional investors and hedge funds own 25.20% of the company's stock.

Karat Packaging Price Performance

The stock's fifty day moving average price is $51.53 and its 200-day moving average price is $36.31. The company has a debt-to-equity ratio of 0.13, a current ratio of 2.25 and a quick ratio of 1.25. The firm has a market cap of $668.45 million, a price-to-earnings ratio of 14.21, a price-to-earnings-growth ratio of 1.46 and a beta of 0.79.

About Karat Packaging

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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