The stock of Karat Packaging Inc (NASDAQ: KRT) has decreased by -14.73 when compared to last closing price of 30.96. Despite this, the company has experienced a -14.24% fall in its stock price over the last five trading sessions. globenewswire.com reported 2025-06-10 that CHINO, Calif., June 10, 2025 (GLOBE NEWSWIRE) — Karat Packaging Inc. (Nasdaq: KRT) (“Karat” or the “Company”), a specialty distributor and manufacturer of disposable foodservice products and related items, today announced the pricing of its previously announced underwritten secondary offering of 1,500,000 shares of Karat’s common stock by certain members of the Company’s management team (collectively, the “Selling Stockholders”) at a price of $27.00 per share. The underwriters have been granted a 30-day option to purchase up to an additional 225,000 shares of Karat’s common stock from the Selling Stockholders. The offering is expected to close on June 12, 2025, subject to the satisfaction of customary closing conditions. The Company will not receive any proceeds from the sale of shares by the Selling Stockholders.
Is It Worth Investing in Karat Packaging Inc (NASDAQ: KRT) Right Now?
The price-to-earnings ratio for Karat Packaging Inc (NASDAQ: KRT) is above average at 17.60x. The 36-month beta value for KRT is also noteworthy at 1.15. There are mixed opinions on the stock, with 1 analysts rating it as a “buy,” 0 rating it as “overweight,” 2 rating it as “hold,” and 0 rating it as “sell.”
The public float for KRT is 6.90M, and at present, short sellers hold a 1.52% of that float. The average trading volume of KRT on June 12, 2025 was 48.03K shares.
KRT’s Market Performance
KRT stock saw a decrease of -14.24% in the past week, with a monthly decline of -13.98% and a quarterly a decrease of -10.61%. The volatility ratio for the week is 8.05%, and the volatility levels for the last 30 days are 3.94% for Karat Packaging Inc (KRT). The simple moving average for the past 20 days is -14.76% for KRT’s stock, with a -7.38% simple moving average for the past 200 days.
Analysts’ Opinion of KRT
Truist, on the other hand, stated in their research note that they expect to see KRT reach a price target of $28, previously predicting the price at $34. The rating they have provided for KRT stocks is “Hold” according to the report published on August 09th, 2024.
Lake Street gave a rating of “Buy” to KRT, setting the target price at $22 in the report published on January 04th of the previous year.
KRT Trading at -5.77% from the 50-Day Moving Average
After a stumble in the market that brought KRT to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -22.10% of loss for the given period.
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Stock Fundamentals for KRT
Current profitability levels for the company are sitting at:
- 0.09 for the present operating margin
- 0.39 for the gross margin
The net margin for Karat Packaging Inc stands at 0.07. The total capital return value is set at 0.15. Equity return is now at value 19.64, with 10.22 for asset returns.
Based on Karat Packaging Inc (KRT), the company’s capital structure generated 0.4 points at debt to capital in total, while cash flow to debt ratio is standing at 0.49. The debt to equity ratio resting at 0.66. The interest coverage ratio of the stock is 18.04.
Currently, EBITDA for the company is 37.76 million with net debt to EBITDA at 1.09. When we switch over and look at the enterprise to sales, we see a ratio of 1.39. The receivables turnover for the company is 13.29for trailing twelve months and the total asset turnover is 1.38. The liquidity ratio also appears to be rather interesting for investors as it stands at 2.86.
Conclusion
In summary, Karat Packaging Inc (KRT) has had a bad performance as of late. Analysts have mixed opinions on the stock, with some viewing it as a “buy” and others as a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
