Q3 EPS Estimates for Karat Packaging Cut by William Blair

Key Points

• William Blair has revised its Q3 2025 earnings per share (EPS) estimate for Karat Packaging down to $0.43 from $0.44, maintaining a full-year earnings estimate of $1.66 per share.
• Truist Financial has upgraded its price target on Karat Packaging from $28.00 to $31.00 and maintains a "hold" rating.
• Karat Packaging's stock has shown a 0.8% increase, with a current market price of $26.64 and a market capitalization of $534.93 million.

Karat Packaging Inc. (NASDAQ:KRT - Free Report) - Equities researchers at William Blair dropped their Q3 2025 earnings per share estimates for Karat Packaging in a report released on Tuesday, August 5th. William Blair analyst R. Merkel now forecasts that the company will post earnings of $0.43 per share for the quarter, down from their previous estimate of $0.44. 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 Q1 2026 earnings at $0.23 EPS, Q2 2026 earnings at $0.55 EPS, Q3 2026 earnings at $0.56 EPS, Q4 2026 earnings at $0.31 EPS and FY2026 earnings at $1.66 EPS.

KRT has been the topic of several other research reports. Truist Financial boosted their target price on Karat Packaging from $28.00 to $31.00 and gave the stock a "hold" rating in a report on Monday, May 12th. Wall Street Zen cut Karat Packaging from a "strong-buy" rating to a "buy" rating in a report on Saturday.

Karat Packaging Stock Performance

Shares of NASDAQ KRT traded down $1.68 during midday trading on Wednesday, hitting $25.06. 123,391 shares of the company's stock were exchanged, compared to its average volume of 68,955. The company has a debt-to-equity ratio of 0.29, a current ratio of 2.86 and a quick ratio of 1.53. The stock's 50 day moving average price is $28.19 and its 200-day moving average price is $28.53. The firm has a market cap of $503.20 million, a P/E ratio of 15.76 and a beta of 1.11. Karat Packaging has a twelve month low of $23.00 and a twelve month high of $33.89.

Karat Packaging Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, August 27th. Shareholders of record on Wednesday, August 20th will be issued a $0.45 dividend. The ex-dividend date of this dividend is Wednesday, August 20th. This represents a $1.80 annualized dividend and a dividend yield of 7.2%. Karat Packaging's dividend payout ratio is currently 120.00%.

Insider Activity

In other Karat Packaging news, CEO Alan Yu sold 750,000 shares of the company's stock in a transaction on Thursday, June 12th. The stock was sold at an average price of $27.00, for a total value of $20,250,000.00. Following the transaction, the chief executive officer owned 6,203,805 shares of the company's stock, valued at approximately $167,502,735. This represents a 10.79% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Corporate insiders own 66.20% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of KRT. GAMMA Investing LLC raised its stake in Karat Packaging by 4,151.4% during the 1st quarter. GAMMA Investing LLC now owns 1,488 shares of the company's stock valued at $40,000 after purchasing an additional 1,453 shares during the period. Janney Montgomery Scott LLC raised its stake in Karat Packaging by 8.5% during the 1st quarter. Janney Montgomery Scott LLC now owns 37,599 shares of the company's stock valued at $999,000 after purchasing an additional 2,933 shares during the period. Citadel Advisors LLC raised its stake in Karat Packaging by 91.1% during the 4th quarter. Citadel Advisors LLC now owns 34,344 shares of the company's stock valued at $1,039,000 after purchasing an additional 16,371 shares during the period. Northern Trust Corp raised its stake in Karat Packaging by 5.2% during the 4th quarter. Northern Trust Corp now owns 56,330 shares of the company's stock valued at $1,705,000 after purchasing an additional 2,762 shares during the period. Finally, Bank of America Corp DE raised its stake in Karat Packaging by 15.9% during the 4th quarter. Bank of America Corp DE now owns 9,550 shares of the company's stock valued at $289,000 after purchasing an additional 1,307 shares during the period. Institutional investors 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.