Karat Packaging Inc. (KRT) to Distribute Quarterly Dividend of $0.35 on May 24th

Karat Packaging Inc. (NASDAQ:KRT) declared a quarterly dividend on Tuesday, May 7th, Zacks reports. Stockholders 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 dividend yield of 4.84%. 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% indicating that 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 Down 1.5 %

Shares of KRT stock traded down $0.44 during trading hours on Thursday, hitting $28.91. 25,640 shares of the company’s stock traded hands, compared to its average volume of 46,190. Karat Packaging has a 12-month low of $14.30 and a 12-month high of $30.94. 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 has a market cap of $577.33 million, a price-to-earnings ratio of 17.71 and a beta of 1.06. The stock’s fifty day simple moving average is $28.13 and its two-hundred day simple moving average is $25.13.

Karat Packaging (NASDAQ:KRT) last released its quarterly 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). The firm had revenue of $95.58 million for the quarter, compared to the consensus estimate of $95.51 million. Karat Packaging had a net margin of 8.00% and a return on equity of 22.54%. On average, analysts expect that Karat Packaging will post 1.92 EPS for the current year.

Analysts Set New Price Targets

Several research analysts recently weighed in on the stock. Truist Financial upped their price target on shares of Karat Packaging from $24.00 to $33.00 and gave the stock a “buy” rating in a research report on Friday, March 15th. Stifel Nicolaus reaffirmed a “buy” rating and set a $32.00 price objective (up from $30.00) on shares of Karat Packaging in a research note 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.