Karat Packaging (NASDAQ:KRT) Rating Increased to Buy at Wall Street Zen

Karat Packaging (NASDAQ:KRT) was upgraded by research analysts at Wall Street Zen from a “hold” rating to a “buy” rating in a research report issued to clients and investors on Saturday.

KRT has been the topic of several other reports. Weiss Ratings reissued a “hold (c+)” rating on shares of Karat Packaging in a research report on Thursday, January 22nd. Zacks Research raised Karat Packaging from a “strong sell” rating to a “hold” rating in a research report on Monday, January 5th. Finally, Bank of America set a $24.00 target price on Karat Packaging and gave the company an “underperform” rating in a research note on Friday. Three analysts have rated the stock with a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, Karat Packaging has a consensus rating of “Reduce” and a consensus price target of $27.50.

Karat Packaging Price Performance

KRT opened at $26.92 on Friday. The company has a quick ratio of 1.09, a current ratio of 2.14 and a debt-to-equity ratio of 0.14. Karat Packaging has a 52-week low of $20.61 and a 52-week high of $32.68. The company has a 50 day moving average of $24.65 and a two-hundred day moving average of $23.95. The company has a market cap of $541.09 million, a P/E ratio of 17.26, a P/E/G ratio of 1.24 and a beta of 1.09.

Karat Packaging (NASDAQ:KRT) last issued its earnings results on Thursday, March 12th. The company reported $0.34 EPS for the quarter, beating analysts’ consensus estimates of $0.28 by $0.06. The business had revenue of $115.62 million for the quarter, compared to the consensus estimate of $113.95 million. Karat Packaging had a net margin of 6.73% and a return on equity of 19.49%. On average, analysts expect that Karat Packaging will post 1.66 earnings per share for the current year.

Hedge Funds Weigh In On Karat Packaging

A number of institutional investors have recently added to or reduced their stakes in KRT. Bank of Montreal Can acquired a new stake in shares of Karat Packaging during the fourth quarter valued at about $5,216,000. KTF Investments LLC acquired a new position in shares of Karat Packaging in the fourth quarter worth about $5,075,000. Polar Asset Management Partners Inc. purchased a new position in Karat Packaging in the third quarter valued at about $5,039,000. Ranger Investment Management L.P. boosted its holdings in Karat Packaging by 105.7% in the second quarter. Ranger Investment Management L.P. now owns 320,556 shares of the company’s stock valued at $9,027,000 after purchasing an additional 164,716 shares during the last quarter. Finally, Marshall Wace LLP acquired a new stake in Karat Packaging during the 2nd quarter valued at approximately $4,312,000. Institutional investors and hedge funds own 25.20% of the company’s stock.

Karat Packaging News Roundup

Here are the key news stories impacting Karat Packaging this week:

• Positive Sentiment: Q4 2025 results beat expectations — Karat reported $0.34 EPS (vs. ~$0.28 consensus) and revenue of $115.6M, topping estimates and showing year‑over‑year top‑line growth. This beat is the primary near‑term catalyst for investor optimism. GlobeNewswire: Q4 & Full-Year 2025 Results
• Positive Sentiment: Management guided to low double‑digit sales growth for full‑year 2026 and highlighted expansion of its paper‑bag manufacturing footprint — a growth/strategic initiative that supports longer‑term revenue expansion. Seeking Alpha: 2026 Growth & Paper Bag Expansion
• Positive Sentiment: Operating and net income improved year‑over‑year (operating profit and net income increased, ROE remains strong), supporting the view that core profitability is intact despite input cost pressure. Yahoo Finance: Q4 Highlights
• Neutral Sentiment: Investors are parsing management commentary from the earnings call and transcript for color on demand trends, pricing pass‑through and timing of paper‑bag capacity additions. (See transcript for details.) Earnings Call Transcript
• Negative Sentiment: First‑quarter 2026 revenue guidance came in below street expectations ($111.9M–$114.0M vs. ~$116.4M consensus), which is a near‑term headwind and could cap upside if the company underdelivers on quarterly cadence. MarketBeat: Guidance Summary
• Negative Sentiment: Operating cash flow weakened sharply (cash from operations down ~88% YoY to ~$1.0M) and cash balances declined while capex increased — a liquidity and cash‑flow dynamic investors will watch as the company funds expansion. QuiverQuant: Earnings & Cash Flow

Karat Packaging Company Profile

Karat Packaging Technologies, Inc (NASDAQ: KRT) is a U.S.-based provider of premium packaging solutions for consumer goods and industrial products. The company specializes in the design, manufacture and delivery of high-quality litho-laminated folding cartons, tubes and flexible packaging. Karat Packaging operates an integrated production model that combines prepress, printing, converting and finishing capabilities to support the branding and shelf-appeal needs of its customers.

The company serves a diverse range of end markets, including food and beverage, confectionery, health and beauty, pharmaceuticals, specialty chemicals and promotional packaging.