Q2 EPS Estimates for Karat Packaging Cut by William Blair

Key Points

• William Blair lowered its earnings per share estimate for Karat Packaging for Q2 2025 from $0.59 to $0.58, while the consensus estimate for the full year is $1.66.
• The company recently declared a quarterly dividend of $0.45, representing a yield of 6.7% and an annualized dividend of $1.80, with a payout ratio of 120%.
• Institutional investors have increased their holdings in Karat Packaging, with Copeland Capital Management raising its position by 58.3% in the second quarter.

Karat Packaging Inc. (NASDAQ:KRT - Free Report) - Analysts at William Blair cut their Q2 2025 earnings per share (EPS) estimates for shares of Karat Packaging in a research note issued on Tuesday, August 5th. William Blair analyst R. Merkel now expects that the company will post earnings of $0.58 per share for the quarter, down from their prior forecast of $0.59. 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 FY2025 earnings at $1.51 EPS.

Several other equities analysts have also recently issued reports on KRT. Wall Street Zen cut Karat Packaging from a "strong-buy" rating to a "buy" rating in a research report on Saturday. Truist Financial boosted their target price on Karat Packaging from $28.00 to $31.00 and gave the stock a "hold" rating in a research report on Monday, May 12th.

Karat Packaging Stock Performance

KRT traded down $1.68 on Thursday, hitting $25.06. 123,391 shares of the company traded hands, compared to its average volume of 68,955. The company has a 50 day moving average of $28.19 and a 200-day moving average of $28.53. The company has a quick ratio of 1.53, a current ratio of 2.86 and a debt-to-equity ratio of 0.29. The stock has a market capitalization of $503.20 million, a PE ratio of 15.76 and a beta of 1.11. Karat Packaging has a 12-month low of $23.00 and a 12-month high of $33.89.

Karat Packaging Dividend Announcement

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

Insider Buying and Selling at Karat Packaging

In other Karat Packaging news, CEO Alan Yu sold 112,500 shares of the stock in a transaction on Friday, June 27th. The stock was sold at an average price of $27.00, for a total transaction of $3,037,500.00. Following the sale, the chief executive officer owned 6,091,305 shares in the company, valued at approximately $164,465,235. This represents a 1.81% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. 66.20% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Karat Packaging

Large investors have recently bought and sold shares of the stock. Copeland Capital Management LLC boosted its holdings in shares of Karat Packaging by 58.3% during the second quarter. Copeland Capital Management LLC now owns 2,083 shares of the company's stock worth $59,000 after purchasing an additional 767 shares during the last quarter. Wells Fargo & Company MN raised its position in shares of Karat Packaging by 20.8% in the 4th quarter. Wells Fargo & Company MN now owns 5,538 shares of the company's stock worth $168,000 after buying an additional 955 shares during the period. Independent Advisor Alliance raised its position in shares of Karat Packaging by 2.8% in the 1st quarter. Independent Advisor Alliance now owns 38,654 shares of the company's stock worth $1,027,000 after buying an additional 1,059 shares during the period. Rhumbline Advisers raised its position in shares of Karat Packaging by 10.3% in the 1st quarter. Rhumbline Advisers now owns 11,668 shares of the company's stock worth $310,000 after buying an additional 1,088 shares during the period. Finally, Bank of America Corp DE raised its position in shares of Karat Packaging by 15.9% in the 4th quarter. Bank of America Corp DE now owns 9,550 shares of the company's stock worth $289,000 after buying an additional 1,307 shares during the period. 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.