Karat Packaging Q3 EPS Forecast Lowered by William Blair

Karat Packaging Inc. (NASDAQ:KRT) – Equities research analysts at William Blair dropped their Q3 2025 earnings per share (EPS) estimates for Karat Packaging in a research note issued on Tuesday, August 5th. William Blair analyst R. Merkel now anticipates that the company will post earnings of $0.43 per share for the quarter, down from their prior 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.

Other analysts have also recently issued research reports about the stock. Truist Financial raised their target price on shares of Karat Packaging from $28.00 to $31.00 and gave the stock a “hold” rating in a research note on Monday, May 12th. Wall Street Zen upgraded shares of Karat Packaging from a “buy” rating to a “strong-buy” rating in a research report on Sunday, July 20th.

Karat Packaging Stock Performance

Shares of KRT opened at $26.96 on Wednesday. The firm has a market cap of $541.36 million, a PE ratio of 17.97 and a beta of 1.11. The company’s 50 day simple moving average is $28.42 and its 200-day simple moving average is $28.61. The company has a current ratio of 2.86, a quick ratio of 1.53 and a debt-to-equity ratio of 0.29. Karat Packaging has a 12-month low of $23.00 and a 12-month high of $33.89.

Karat Packaging Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, August 27th. Investors of record on Wednesday, August 20th will be given a $0.45 dividend. This represents a $1.80 annualized dividend and a dividend yield of 6.7%. Karat Packaging’s dividend payout ratio is presently 120.00%.

Insider Activity at Karat Packaging

In other news, CEO Alan Yu sold 112,500 shares of the firm’s stock in a transaction that occurred on Friday, June 27th. The shares were sold at an average price of $27.00, for a total transaction of $3,037,500.00. Following the completion of the transaction, the chief executive officer directly owned 6,091,305 shares of the company’s stock, valued at $164,465,235. This trade represents a 1.81% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. 66.20% of the stock is owned by corporate insiders.

Institutional Trading of Karat Packaging

Several hedge funds and other institutional investors have recently added to or reduced their stakes in KRT. GAMMA Investing LLC raised its position in Karat Packaging by 4,151.4% in the first 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 boosted its stake in shares of Karat Packaging by 8.5% in the first 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 lifted its stake in shares of Karat Packaging by 91.1% in the fourth quarter. Citadel Advisors LLC now owns 34,344 shares of the company’s stock worth $1,039,000 after acquiring an additional 16,371 shares in the last quarter. Northern Trust Corp boosted its stake in shares of 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 buying an additional 2,762 shares during the last quarter. Finally, Bank of America Corp DE grew its holdings 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 worth $289,000 after acquiring an additional 1,307 shares in the last quarter. Hedge funds and other 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.