Karat Packaging Inc. Declares Quarterly Dividend of $0.45 (NASDAQ:KRT)

Key Points

• Karat Packaging declared a quarterly dividend of $0.45 per share, payable May 28 to holders of record on May 21, implying a $1.80 annual dividend and a ~6.1% yield.
• The dividend is currently funded at a high payout ratio of 97.8%, though analysts expect $2.24 in earnings per share next year which would lower the projected payout ratio to about 80.4%.
• Last quarter the company beat expectations with $0.34 EPS (vs. $0.28 est.) and $115.6M revenue, and the stock trades near $29.68 with a market cap around $593M and a P/E of ~19.

Karat Packaging Inc. (NASDAQ:KRT - Get Free Report) announced a quarterly dividend on Wednesday, May 6th. Investors of record on Thursday, May 21st will be paid a dividend of 0.45 per share on Thursday, May 28th. This represents a c) dividend on an annualized basis and a dividend yield of 6.1%. The ex-dividend date of this dividend is Thursday, May 21st.

Karat Packaging has a payout ratio of 97.8% meaning its dividend is currently covered by earnings, but may not be in the future if the company's earnings fall. Equities analysts expect Karat Packaging to earn $2.24 per share next year, which means the company should continue to be able to cover its $1.80 annual dividend with an expected future payout ratio of 80.4%.

Karat Packaging Stock Performance

Shares of NASDAQ KRT traded up $0.31 during midday trading on Wednesday, reaching $29.68. 50,304 shares of the company traded hands, compared to its average volume of 75,982. Karat Packaging has a 52 week low of $20.61 and a 52 week high of $32.68. The stock has a 50-day moving average price of $27.14 and a 200 day moving average price of $24.93. The company has a debt-to-equity ratio of 0.15, a current ratio of 2.30 and a quick ratio of 1.13. The company has a market cap of $592.53 million, a price-to-earnings ratio of 19.03, a PEG ratio of 1.13 and a beta of 0.93.

Karat Packaging (NASDAQ:KRT - Get Free Report) last issued its quarterly earnings data on Thursday, March 12th. The company reported $0.34 earnings per share for the quarter, beating analysts' consensus estimates of $0.28 by $0.06. Karat Packaging had a net margin of 6.73% and a return on equity of 19.63%. The business had revenue of $115.62 million for the quarter, compared to analysts' expectations of $113.95 million. Sell-side analysts anticipate that Karat Packaging will post 1.98 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Karat Packaging

Several hedge funds and other institutional investors have recently bought and sold shares of KRT. Goldman Sachs Group Inc. raised its position in Karat Packaging by 19.6% in the first quarter. Goldman Sachs Group Inc. now owns 28,565 shares of the company's stock worth $759,000 after acquiring an additional 4,684 shares in the last quarter. Jane Street Group LLC acquired a new stake in Karat Packaging during the 1st quarter worth about $219,000. JPMorgan Chase & Co. lifted its stake in Karat Packaging by 921.6% during the second quarter. JPMorgan Chase & Co. now owns 34,203 shares of the company's stock valued at $963,000 after buying an additional 30,855 shares in the last quarter. Hsbc Holdings PLC lifted its stake in Karat Packaging by 41.1% during the second quarter. Hsbc Holdings PLC now owns 13,731 shares of the company's stock valued at $379,000 after buying an additional 3,999 shares in the last quarter. Finally, First Trust Advisors LP boosted its holdings in shares of Karat Packaging by 3.9% in the second quarter. First Trust Advisors LP now owns 22,061 shares of the company's stock worth $621,000 after buying an additional 830 shares during the period. 25.20% of the stock is currently owned by institutional investors.

About Karat Packaging

Karat Packaging Technologies, Inc NASDAQ: KRT is a U.S.-based provider of premium packaging solutions for consumer goods and industrial products. The company specializes in the design, manufacture and delivery of high-quality litho-laminated folding cartons, tubes and flexible packaging. Karat Packaging operates an integrated production model that combines prepress, printing, converting and finishing capabilities to support the branding and shelf-appeal needs of its customers.

The company serves a diverse range of end markets, including food and beverage, confectionery, health and beauty, pharmaceuticals, specialty chemicals and promotional packaging.

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