Karat Packaging (NASDAQ:KRT) Cut to “Strong Sell” at Zacks Research

Zacks Research downgraded shares of Karat Packaging (NASDAQ:KRT) from a hold rating to a strong sell rating in a research report report published on Monday morning,Zacks.com reports.

Several other research firms also recently issued reports on KRT. Wall Street Zen downgraded shares of Karat Packaging from a “buy” rating to a “hold” rating in a research note on Saturday, November 8th. Weiss Ratings lowered Karat Packaging from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Wednesday, October 8th. Finally, Bank of America raised Karat Packaging from a “neutral” rating to a “buy” rating and set a $31.00 price target for the company in a report on Thursday, October 9th. Two equities research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of “Hold” and a consensus price target of $32.67.

Karat Packaging Stock Performance

Shares of NASDAQ:KRT opened at $21.95 on Monday. The business’s 50-day simple moving average is $24.26 and its 200 day simple moving average is $26.69. The company has a market cap of $441.20 million, a P/E ratio of 14.63, a PEG ratio of 1.62 and a beta of 1.09. The company has a debt-to-equity ratio of 0.14, a quick ratio of 1.40 and a current ratio of 2.14. Karat Packaging has a one year low of $21.25 and a one year high of $33.89.

Karat Packaging (NASDAQ:KRT) last issued its quarterly earnings data on Thursday, November 6th. The company reported $0.37 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.37. The company had revenue of $124.52 million during the quarter, compared to the consensus estimate of $124.09 million. Karat Packaging had a net margin of 6.67% and a return on equity of 18.98%. Karat Packaging has set its FY 2025 guidance at EPS. Q4 2025 guidance at EPS. On average, sell-side analysts forecast that Karat Packaging will post 1.66 earnings per share for the current fiscal year.

Karat Packaging Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, November 28th. Investors of record on Friday, November 21st will be issued a $0.45 dividend. This represents a $1.80 annualized dividend and a yield of 8.2%. The ex-dividend date of this dividend is Friday, November 21st. Karat Packaging’s payout ratio is currently 120.00%.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the company. Vanguard Group Inc. raised its position in shares of Karat Packaging by 12.0% during the 3rd quarter. Vanguard Group Inc. now owns 477,450 shares of the company’s stock valued at $12,037,000 after acquiring an additional 51,179 shares in the last quarter. Wasatch Advisors LP increased its stake in Karat Packaging by 3.3% during the second quarter. Wasatch Advisors LP now owns 330,961 shares of the company’s stock valued at $9,320,000 after purchasing an additional 10,617 shares during the last quarter. Ranger Investment Management L.P. increased its stake in Karat Packaging by 0.6% during the third quarter. Ranger Investment Management L.P. now owns 322,536 shares of the company’s stock valued at $8,131,000 after purchasing an additional 1,980 shares during the last quarter. Acadian Asset Management LLC raised its holdings in shares of Karat Packaging by 13.7% during the second quarter. Acadian Asset Management LLC now owns 279,361 shares of the company’s stock worth $7,863,000 after purchasing an additional 33,627 shares during the period. Finally, De Lisle Partners LLP raised its holdings in shares of Karat Packaging by 53.6% during the second quarter. De Lisle Partners LLP now owns 229,143 shares of the company’s stock worth $6,444,000 after purchasing an additional 80,000 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.