Karat Packaging Inc. (NASDAQ:KRT) Plans Dividend Increase - $0.40 Per Share

Karat Packaging Inc. (NASDAQ:KRT - Get Free Report) declared a quarterly dividend on Wednesday, November 6th,Zacks Dividends reports. Shareholders of record on Wednesday, November 20th will be paid a dividend of 0.40 per share on Friday, November 29th. This represents a $1.60 annualized dividend and a yield of 5.45%. The ex-dividend date of this dividend is Wednesday, November 20th. This is an increase from Karat Packaging's previous quarterly dividend of $0.35.

Karat Packaging has a payout ratio of 66.4% indicating that its dividend is sufficiently covered by earnings. Research analysts expect Karat Packaging to earn $2.09 per share next year, which means the company should continue to be able to cover its $1.40 annual dividend with an expected future payout ratio of 67.0%.

Karat Packaging Stock Performance

Shares of KRT stock traded down $0.30 during mid-day trading on Thursday, hitting $29.35. The stock had a trading volume of 29,963 shares, compared to its average volume of 42,667. Karat Packaging has a fifty-two week low of $17.23 and a fifty-two week high of $30.94. The firm has a market cap of $587.44 million, a PE ratio of 21.00 and a beta of 1.03. The company has a debt-to-equity ratio of 0.29, a current ratio of 3.05 and a quick ratio of 1.62. The company's 50-day simple moving average is $26.01 and its 200-day simple moving average is $27.25.

Karat Packaging (NASDAQ:KRT - Get Free Report) last released its earnings results on Thursday, August 8th. The company reported $0.49 EPS for the quarter, missing the consensus estimate of $0.60 by ($0.11). Karat Packaging had a return on equity of 19.79% and a net margin of 6.90%. The firm had revenue of $112.60 million during the quarter, compared to analyst estimates of $114.03 million. During the same quarter last year, the business posted $0.68 EPS. Sell-side analysts anticipate that Karat Packaging will post 1.84 earnings per share for the current year.

Analyst Upgrades and Downgrades

Separately, Truist Financial cut shares of Karat Packaging from a "buy" rating to a "hold" rating and reduced their target price for the stock from $34.00 to $28.00 in a research note on Friday, August 9th.

About Karat Packaging

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.