Karat Packaging Inc. (NASDAQ:KRT) Raises Dividend to $0.40 Per Share

Karat Packaging Inc. (NASDAQ:KRT) declared a quarterly dividend on Wednesday, November 6th, Zacks reports. Stockholders of record on Wednesday, November 20th will be paid a dividend of 0.40 per share on Friday, November 29th. This represents a $1.60 dividend on an annualized basis and a dividend yield of 5.44%. The ex-dividend date of this dividend is Wednesday, November 20th. This is an increase from Karat Packaging’s previous quarterly dividend of $0.35.

Karat Packaging has a payout ratio of 66.4% indicating that its dividend is sufficiently covered by earnings. Analysts expect Karat Packaging to earn $2.09 per share next year, which means the company should continue to be able to cover its $1.40 annual dividend with an expected future payout ratio of 67.0%.

Karat Packaging Price Performance

KRT traded down $0.25 on Thursday, hitting $29.40. 4,119 shares of the company were exchanged, compared to its average volume of 42,547. Karat Packaging has a fifty-two week low of $17.23 and a fifty-two week high of $30.94. The company has a debt-to-equity ratio of 0.29, a quick ratio of 1.62 and a current ratio of 3.05. The firm has a market capitalization of $588.29 million, a P/E ratio of 21.18 and a beta of 1.03. The business’s fifty day moving average is $26.01 and its 200 day moving average is $27.25.

Karat Packaging (NASDAQ:KRT) last released its quarterly earnings data on Thursday, August 8th. The company reported $0.49 earnings per share for the quarter, missing the consensus estimate of $0.60 by ($0.11). The firm had revenue of $112.60 million during the quarter, compared to analysts’ expectations of $114.03 million. Karat Packaging had a net margin of 6.90% and a return on equity of 19.79%. During the same period in the previous year, the business earned $0.68 earnings per share. As a group, sell-side analysts anticipate that Karat Packaging will post 1.84 EPS for the current year.

Analyst Ratings Changes

Separately, Truist Financial downgraded Karat Packaging from a “buy” rating to a “hold” rating and cut their price target for the stock from $34.00 to $28.00 in a research note on Friday, August 9th.

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.