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

Key Points

• Karat Packaging declared a quarterly dividend of $0.47 per share, payable November 27 to shareholders of record November 19. That equates to $1.88 annually and a 3.5% yield.
• The dividend currently exceeds earnings, with a reported payout ratio of 102.2%. Analysts expect next year’s earnings to cover the dividend, bringing the projected payout ratio to 83.6%.
• In its latest reported quarter, Karat earned $1.48 per share, beating the $0.47 consensus estimate, and generated $136.3 million in revenue versus expectations of $135.46 million.

Karat Packaging Inc. (NASDAQ:KRT - Get Free Report) declared a quarterly dividend on Wednesday, November 4th. Stockholders of record on Thursday, November 19th will be given a dividend of $0.47 per share on Friday, November 27th. This represents a $1.88 annualized dividend and a dividend yield of 3.5%. The ex-dividend date of this dividend 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. Equities 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 Trading Up 2.8%

Shares of KRT stock traded up $1.46 during mid-day trading on Wednesday, hitting $53.63. The company's stock had a trading volume of 146,706 shares, compared to its average volume of 116,795. The company has a market cap of $1.07 billion, a PE ratio of 21.45, a P/E/G ratio of 1.46 and a beta of 0.79. The company has a debt-to-equity ratio of 0.13, a quick ratio of 1.25 and a current ratio of 2.25. The company's fifty day simple moving average is $51.72 and its 200-day simple moving average is $35.99. Karat Packaging has a 52 week low of $20.61 and a 52 week high of $56.06.

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

Hedge Funds Weigh In On Karat Packaging

A number of hedge funds have recently added to or reduced their stakes in KRT. BlackRock Inc. bought a new stake in Karat Packaging in the 2nd quarter worth about $19,840,000. Ranger Investment Management L.P. bought a new stake in shares of Karat Packaging during the 2nd quarter worth $11,129,000. De Lisle Partners LLP purchased a new position in shares of Karat Packaging in the 2nd quarter worth about $7,307,000. Dimensional Fund Advisors LP boosted 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 buying an additional 17,326 shares during the last quarter. Finally, CWA Asset Management Group LLC grew its position in Karat Packaging by 35.9% during the third quarter. CWA Asset Management Group LLC now owns 185,066 shares of the company's stock valued at $9,725,000 after buying an additional 48,906 shares during the period. Institutional investors and hedge funds own 25.20% of the company's stock.

Karat Packaging Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.