William Blair Reduces Earnings Estimates for Karat Packaging

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 dropped their Q2 2025 EPS 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 $0.58 per share for the quarter, down from their previous estimate 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 research analysts have also issued reports on the stock. Wall Street Zen lowered shares of Karat Packaging from a "strong-buy" rating to a "buy" rating in a research note on Saturday. Truist Financial raised their price target on Karat Packaging from $28.00 to $31.00 and gave the stock a "hold" rating in a research note on Monday, May 12th.

Karat Packaging Trading Up 1.3%

Shares of Karat Packaging stock traded up $0.32 during trading on Thursday, reaching $25.38. The company's stock had a trading volume of 27,698 shares, compared to its average volume of 59,915. Karat Packaging has a 52-week low of $23.00 and a 52-week high of $33.89. The company has a market cap of $509.45 million, a price-to-earnings ratio of 15.96 and a beta of 1.11. The firm's 50-day moving average is $28.19 and its two-hundred day moving average is $28.51. The company has a quick ratio of 1.53, a current ratio of 2.86 and a debt-to-equity ratio of 0.29.

Institutional Investors Weigh In On Karat Packaging

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. GAMMA Investing LLC raised its holdings in shares of Karat Packaging by 4,151.4% during the 1st quarter. GAMMA Investing LLC now owns 1,488 shares of the company's stock worth $40,000 after acquiring an additional 1,453 shares during the period. Deutsche Bank AG increased its stake in Karat Packaging by 773.6% during the fourth quarter. Deutsche Bank AG now owns 1,590 shares of the company's stock worth $48,000 after purchasing an additional 1,408 shares during the period. Copeland Capital Management LLC grew its position 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 buying an additional 767 shares in the last quarter. Comerica Bank grew its position in shares of Karat Packaging by 107.8% during the fourth quarter. Comerica Bank now owns 5,262 shares of the company's stock worth $159,000 after buying an additional 2,730 shares in the last quarter. Finally, Wells Fargo & Company MN grew its position in shares of Karat Packaging by 20.8% during the fourth quarter. Wells Fargo & Company MN now owns 5,538 shares of the company's stock worth $168,000 after buying an additional 955 shares in the last quarter. Institutional investors and hedge funds own 25.20% of the company's stock.

Insider Activity at Karat Packaging

In other Karat Packaging news, CEO Alan Yu sold 750,000 shares of the stock in a transaction dated Thursday, June 12th. The shares were sold at an average price of $27.00, for a total transaction of $20,250,000.00. Following the completion of the sale, the chief executive officer directly 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 SEC, which can be accessed through this hyperlink. Insiders own 66.20% of the company's stock.

Karat Packaging Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, August 27th. Stockholders 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 7.1%. Karat Packaging's dividend payout ratio is presently 113.21%.

About Karat Packaging

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.