Karat Packaging Inc. (NASDAQ:KRT) to Issue Dividend Increase - $0.45 Per Share

Karat Packaging Inc. (NASDAQ:KRT - Get Free Report) announced a quarterly dividend on Thursday, February 13th,RTT News reports. Shareholders of record on Monday, February 24th will be paid a dividend of 0.45 per share on Friday, February 28th. This represents a $1.80 dividend on an annualized basis and a yield of 5.59%. The ex-dividend date of this dividend is Monday, February 24th. This is a positive change from Karat Packaging's previous quarterly dividend of $0.40.

Karat Packaging has a payout ratio of 81.6% indicating that its dividend is currently covered by earnings, but may not be in the future if the company's earnings tumble. Research analysts expect Karat Packaging to earn $1.80 per share next year, which means the company should continue to be able to cover its $1.60 annual dividend with an expected future payout ratio of 88.9%.

Karat Packaging Stock Performance

Karat Packaging stock traded up $1.46 during midday trading on Monday, reaching $32.18. 37,268 shares of the company's stock were exchanged, compared to its average volume of 28,562. The stock's 50-day simple moving average is $30.41 and its 200 day simple moving average is $28.26. The firm has a market cap of $644.37 million, a price-to-earnings ratio of 22.99 and a beta of 1.08. The company has a debt-to-equity ratio of 0.29, a quick ratio of 1.82 and a current ratio of 3.12. Karat Packaging has a 52 week low of $23.10 and a 52 week high of $33.14.

Wall Street Analyst Weigh In

Several brokerages recently commented on KRT. William Blair downgraded shares of Karat Packaging from an "outperform" rating to a "market perform" rating in a report on Thursday, January 2nd. Stifel Nicolaus lifted their target price on shares of Karat Packaging from $32.00 to $36.00 and gave the stock a "buy" rating in a report on Wednesday, December 11th.

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.