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

Karat Packaging Inc. (NASDAQ:KRT) declared 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 dividend on an annualized basis and a dividend yield of 4.89%. 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 dividend payout ratio of 56.1% meaning its dividend is sufficiently covered by earnings. Equities 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 $0.74 on Thursday, reaching $28.61. 22,548 shares of the company’s stock traded hands, compared to its average volume of 46,165. The stock’s 50 day simple moving average is $28.13 and its two-hundred day simple moving average is $25.13. The stock has a market cap of $571.34 million, a PE ratio of 17.71 and a beta of 1.06. Karat Packaging has a 52-week low of $14.30 and a 52-week high of $30.94. The company has a current ratio of 3.49, a quick ratio of 1.88 and a debt-to-equity ratio of 0.30.

Karat Packaging (NASDAQ:KRT) last released its earnings results on Thursday, March 14th. The company reported $0.24 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 the consensus estimate of $95.51 million. On average, analysts forecast that Karat Packaging will post 1.92 earnings per share for the current fiscal year.

Analysts Set New Price Targets

Several analysts have issued reports on the company. Stifel Nicolaus restated a “buy” rating and issued a $32.00 target price (up from $30.00) on shares of Karat Packaging in a research note on Friday, March 15th. Truist Financial boosted their target price on shares of Karat Packaging from $24.00 to $33.00 and gave the company a “buy” rating in a 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.