Karat Packaging Inc. (NASDAQ:KRT) Raises Dividend to $0.47 Per Share

Karat Packaging Inc. (NASDAQ:KRT) announced a quarterly dividend on Tuesday, August 4th. Investors of record on Friday, August 21st will be paid a dividend of 0.47 per share on Friday, August 28th. This represents a c) annualized dividend and a dividend yield of 4.4%. The ex-dividend date of this dividend is Friday, August 21st. This is a 4.4% increase from Karat Packaging’s previous quarterly dividend of $0.45.

Karat Packaging has a dividend payout ratio of 97.8% indicating that its dividend is currently covered by earnings, but may not be in the future if the company’s earnings decline. Research analysts expect Karat Packaging to earn $2.39 per share next year, which means the company should continue to be able to cover its $1.80 annual dividend with an expected future payout ratio of 75.3%.

Karat Packaging Trading Up 0.3%

Shares of KRT stock opened at $42.48 on Thursday. The stock’s fifty day moving average is $33.71 and its two-hundred day moving average is $29.13. The company has a debt-to-equity ratio of 0.15, a quick ratio of 1.15 and a current ratio of 2.29. The firm has a market capitalization of $847.82 million, a P/E ratio of 26.83, a PEG ratio of 1.78 and a beta of 0.82. Karat Packaging has a fifty-two week low of $20.61 and a fifty-two week high of $43.00.

Karat Packaging (NASDAQ:KRT) last announced its earnings results on Thursday, May 7th. The company reported $0.34 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.32 by $0.02. Karat Packaging had a net margin of 6.61% and a return on equity of 19.87%. The company had revenue of $116.95 million for the quarter, compared to analysts’ expectations of $112.98 million. Research analysts expect that Karat Packaging will post 1.78 earnings per share for the current fiscal year.

Analysts Set New Price Targets

Several research firms have recently weighed in on KRT. Zacks Research downgraded Karat Packaging from a “strong-buy” rating to a “hold” rating in a report on Tuesday, May 12th. Lake Street Capital reiterated a “buy” rating and set a $39.00 target price on shares of Karat Packaging in a research note on Friday, May 8th. Wall Street Zen downgraded Karat Packaging from a “buy” rating to a “hold” rating in a research note on Saturday, July 25th. William Blair upgraded Karat Packaging from a “market perform” rating to an “outperform” rating in a research note on Thursday, June 4th. Finally, Bank of America boosted their target price on Karat Packaging from $23.00 to $34.00 and gave the company an “underperform” rating in a report on Tuesday, July 14th. Three investment analysts have rated the stock with a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus price target of $36.50.

About Karat Packaging

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.