Karat Packaging (NASDAQ:KRT) Shares Down 3% on Disappointing Earnings

Karat Packaging Inc. (NASDAQ:KRT - Get Free Report) shares were down 3% during mid-day trading on Friday after the company announced weaker than expected quarterly earnings. The company traded as low as $27.82 and last traded at $28.08. Approximately 18,801 shares changed hands during trading, a decline of 51% from the average daily volume of 38,572 shares. The stock had previously closed at $28.95.

The company reported $0.29 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.43 by ($0.14). Karat Packaging had a return on equity of 19.84% and a net margin of 6.78%. The firm had revenue of $101.65 million for the quarter, compared to analyst estimates of $102.27 million.

Karat Packaging Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, February 28th. Stockholders of record on Monday, February 24th were paid a dividend of $0.45 per share. This represents a $1.80 dividend on an annualized basis and a dividend yield of 6.39%. This is a positive change from Karat Packaging's previous quarterly dividend of $0.40. The ex-dividend date was Monday, February 24th. Karat Packaging's payout ratio is 120.81%.

Analyst Upgrades and Downgrades

A number of research analysts have recently issued reports on KRT shares. Stifel Nicolaus boosted their price target on shares of Karat Packaging from $32.00 to $36.00 and gave the stock a "buy" rating in a research note on Wednesday, December 11th. William Blair downgraded shares of Karat Packaging from an "outperform" rating to a "market perform" rating in a report on Thursday, January 2nd.

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Institutional Trading of Karat Packaging

A number of institutional investors have recently added to or reduced their stakes in KRT. US Bancorp DE purchased a new stake in Karat Packaging during the third quarter worth about $30,000. Janney Montgomery Scott LLC boosted its holdings in Karat Packaging by 4.2% during the third quarter. Janney Montgomery Scott LLC now owns 28,488 shares of the company's stock worth $738,000 after buying an additional 1,148 shares in the last quarter. Charles Schwab Investment Management Inc. lifted its holdings in shares of Karat Packaging by 5.6% in the third quarter. Charles Schwab Investment Management Inc. now owns 19,720 shares of the company's stock valued at $511,000 after purchasing an additional 1,053 shares in the last quarter. Janus Henderson Group PLC lifted its holdings in shares of Karat Packaging by 7.1% in the third quarter. Janus Henderson Group PLC now owns 26,567 shares of the company's stock valued at $688,000 after purchasing an additional 1,760 shares in the last quarter. Finally, Jacobs Levy Equity Management Inc. lifted its holdings in shares of Karat Packaging by 52.1% in the third quarter. Jacobs Levy Equity Management Inc. now owns 54,333 shares of the company's stock valued at $1,407,000 after purchasing an additional 18,612 shares in the last quarter. Hedge funds and other institutional investors own 25.20% of the company's stock.

Karat Packaging Stock Down 2.1 %

The company has a market cap of $564.08 million, a PE ratio of 20.12 and a beta of 1.08. The company has a quick ratio of 1.82, a current ratio of 3.12 and a debt-to-equity ratio of 0.29. The firm's fifty day simple moving average is $30.16 and its 200-day simple moving average is $28.87.

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.