Karat Packaging Inc. (NASDAQ:KRT) Plans Quarterly Dividend of $0.35

Karat Packaging Inc. (NASDAQ:KRT) announced a quarterly dividend on Tuesday, May 7th, Zacks reports. Investors of record on Friday, May 17th will be given a dividend of 0.35 per share on Friday, May 24th. This represents a $1.40 annualized dividend and a yield of 4.88%. The ex-dividend date of this dividend is Thursday, May 16th. This is a boost from Karat Packaging’s previous quarterly dividend of $0.30.

Karat Packaging has a payout ratio of 56.1% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect Karat Packaging to earn $2.07 per share next year, which means the company should continue to be able to cover its $1.20 annual dividend with an expected future payout ratio of 58.0%.

Karat Packaging Stock Performance

Shares of KRT traded down $0.66 during midday trading on Thursday, reaching $28.69. 9,886 shares of the stock were exchanged, compared to its average volume of 45,991. The company has a quick ratio of 1.88, a current ratio of 3.49 and a debt-to-equity ratio of 0.30. The stock’s 50 day simple moving average is $28.13 and its 200 day simple moving average is $25.13. Karat Packaging has a twelve month low of $14.30 and a twelve month high of $30.94. The company has a market cap of $572.94 million, a P/E ratio of 18.12 and a beta of 1.06.

Karat Packaging (NASDAQ:KRT) last announced its earnings results on Thursday, March 14th. The company reported $0.24 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.40 by ($0.16). Karat Packaging had a return on equity of 22.54% and a net margin of 8.00%. The business had revenue of $95.58 million for the quarter, compared to analyst estimates of $95.51 million. On average, sell-side analysts expect that Karat Packaging will post 1.92 earnings per share for the current year.

Analyst Upgrades and Downgrades

KRT has been the topic of a number of research reports. Truist Financial boosted their target price on shares of Karat Packaging from $24.00 to $33.00 and gave the stock a “buy” rating in a report on Friday, March 15th. Stifel Nicolaus restated a “buy” rating and issued a $32.00 price target (up previously from $30.00) on shares of Karat Packaging in a research report on Friday, March 15th.

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.