Karat Packaging Inc. (NASDAQ:KRT) Shareholders to Get $0.47 Quarterly Dividend

Karat Packaging Inc. (NASDAQ:KRT) declared a quarterly dividend on Wednesday, November 4th. Stockholders of record on Thursday, November 19th will be paid a dividend of $0.47 per share on Friday, November 27th. This represents a $1.88 dividend on an annualized basis and a dividend yield of 3.5%. The ex-dividend date is Thursday, November 19th.

Karat Packaging has a payout ratio of 102.2% indicating that the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Research analysts expect Karat Packaging to earn $2.25 per share next year, which means the company should continue to be able to cover its $1.88 annual dividend with an expected future payout ratio of 83.6%.

Karat Packaging Stock Performance

Shares of KRT stock traded up $1.46 on Wednesday, hitting $53.63. 146,706 shares of the stock were exchanged, compared to its average volume of 116,795. The company has a current ratio of 2.25, a quick ratio of 1.25 and a debt-to-equity ratio of 0.13. The firm has a market capitalization of $1.07 billion, a PE ratio of 21.45, a P/E/G ratio of 1.46 and a beta of 0.79. Karat Packaging has a one year low of $20.61 and a one year high of $56.06. The firm’s 50 day moving average is $51.72 and its two-hundred day moving average is $35.99.

Karat Packaging (NASDAQ:KRT) last released its quarterly earnings data on Thursday, August 6th. The company reported $1.48 EPS for the quarter, topping the consensus estimate of $0.47 by $1.01. The company had revenue of $136.30 million during the quarter, compared to the consensus estimate of $135.46 million. Karat Packaging had a net margin of 10.18% and a return on equity of 30.62%. Sell-side analysts expect that Karat Packaging will post 2.63 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Karat Packaging

Hedge funds and other institutional investors have recently modified their holdings of the company. BlackRock Inc. purchased a new position in shares of Karat Packaging during the 2nd quarter valued at about $19,840,000. Ranger Investment Management L.P. purchased a new position in shares of Karat Packaging during the second quarter worth approximately $11,129,000. CWA Asset Management Group LLC raised its stake in shares of Karat Packaging by 35.9% during the third quarter. CWA Asset Management Group LLC now owns 185,066 shares of the company’s stock worth $9,725,000 after acquiring an additional 48,906 shares in the last quarter. De Lisle Partners LLP bought a new stake in shares of Karat Packaging in the 2nd quarter worth approximately $7,307,000. Finally, Dimensional Fund Advisors LP lifted its holdings in shares of Karat Packaging by 8.6% in the 1st quarter. Dimensional Fund Advisors LP now owns 218,437 shares of the company’s stock worth $6,098,000 after acquiring an additional 17,326 shares during the last quarter. 25.20% of the stock is currently owned by hedge funds and other institutional investors.

About Karat Packaging

Karat Packaging Inc is a foodservice packaging company that manufactures and distributes disposable products for restaurants, cafés, convenience stores, supermarkets, institutional foodservice providers and other businesses. The company is headquartered in Chino, California, and serves customers primarily across North America through its distribution and manufacturing operations.

Its product portfolio includes paper and plastic cups, food containers, lids, cutlery, straws, gloves, napkins, bags and other supplies used for food preparation, packaging and takeout service.