Karat Packaging (NASDAQ:KRT) Downgraded to “Underperform” Rating by Bank of America

Bank of America cut shares of Karat Packaging (NASDAQ:KRT) from a buy rating to an underperform rating in a report released on Monday, MarketBeat reports. They currently have $22.00 price objective on the stock, down from their previous price objective of $27.00.

Several other research firms have also recently commented on KRT. Weiss Ratings cut Karat Packaging from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Wednesday, October 8th. Wall Street Zen cut Karat Packaging from a “buy” rating to a “hold” rating in a report on Saturday, November 8th. Finally, Zacks Research lowered Karat Packaging from a “hold” rating to a “strong sell” rating in a report on Monday, November 10th. One equities research analyst has rated the stock with a Buy rating, three have issued a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat, the stock has a consensus rating of “Reduce” and an average target price of $29.67.

Karat Packaging Price Performance

KRT opened at $21.24 on Monday. Karat Packaging has a 1 year low of $21.22 and a 1 year high of $33.89. The stock has a 50-day moving average price of $24.05 and a 200-day moving average price of $26.61. The firm has a market cap of $426.92 million, a PE ratio of 14.16, a P/E/G ratio of 1.65 and a beta of 1.09. The company has a debt-to-equity ratio of 0.14, a current ratio of 2.14 and a quick ratio of 1.09.

Karat Packaging (NASDAQ:KRT) last issued its earnings results on Thursday, November 6th. The company reported $0.37 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.37. The business had revenue of $124.52 million during the quarter, compared to analysts’ expectations 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. Sell-side analysts predict that Karat Packaging will post 1.66 earnings per share for the current fiscal year.

Karat Packaging Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, November 28th. Stockholders of record on Friday, November 21st will be paid a $0.45 dividend. This represents a $1.80 annualized dividend and a dividend yield of 8.5%. The ex-dividend date is Friday, November 21st. Karat Packaging’s dividend payout ratio is 120.00%.

Institutional Trading of Karat Packaging

Several hedge funds have recently bought and sold shares of KRT. Acadian Asset Management LLC lifted its position in shares of Karat Packaging by 9.0% during the 1st quarter. Acadian Asset Management LLC now owns 245,734 shares of the company’s stock valued at $6,529,000 after buying an additional 20,262 shares in the last quarter. Rhumbline Advisers raised its stake in Karat Packaging by 10.3% during the 1st quarter. Rhumbline Advisers now owns 11,668 shares of the company’s stock worth $310,000 after acquiring an additional 1,088 shares during the period. Harel Insurance Investments & Financial Services Ltd. lifted its holdings in Karat Packaging by 148.0% during the second quarter. Harel Insurance Investments & Financial Services Ltd. now owns 25,000 shares of the company’s stock valued at $704,000 after purchasing an additional 14,920 shares in the last quarter. Hsbc Holdings PLC boosted its position in shares of Karat Packaging by 23.0% in the first quarter. Hsbc Holdings PLC now owns 9,732 shares of the company’s stock worth $263,000 after purchasing an additional 1,823 shares during the period. Finally, DAVENPORT & Co LLC bought a new position in shares of Karat Packaging in the second quarter worth approximately $259,000. 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.