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

Key Points

• Karat Packaging Inc. declared a quarterly dividend of $0.45 per share, with a yield of 6.8%, payable to investors on August 27th.
• The company's earnings are projected to not fully cover the dividend in the future, as its payout ratio is currently at 97.8% and may reach 100% based on expected earnings of $1.80 per share next year.
• Karat Packaging's stock price slightly decreased by 0.1%, trading at $26.62, with a market capitalization of $534.43 million and recent insider activity showing CEO Alan Yu selling 112,500 shares.

Karat Packaging Inc. (NASDAQ:KRT - Get Free Report) declared a quarterly dividend on Wednesday, August 6th, RTT News reports. Investors of record on Wednesday, August 20th will be paid a dividend of 0.45 per share on Wednesday, August 27th. This represents a c) dividend on an annualized basis and a yield of 7.2%. The ex-dividend date is Wednesday, August 20th.

Karat Packaging has a dividend 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. Research analysts expect Karat Packaging to earn $1.80 per share next year, which means the company may not be able to cover its $1.80 annual dividend with an expected future payout ratio of 100.0%.

Karat Packaging Stock Down 6.3%

KRT traded down $1.68 on Friday, reaching $25.06. The company's stock had a trading volume of 123,391 shares, compared to its average volume of 68,955. The stock has a 50 day moving average of $28.19 and a two-hundred day moving average of $28.53. The company has a quick ratio of 1.53, a current ratio of 2.86 and a debt-to-equity ratio of 0.29. The company has a market capitalization of $503.20 million, a price-to-earnings ratio of 15.76 and a beta of 1.11. Karat Packaging has a fifty-two week low of $23.00 and a fifty-two week high of $33.89.

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.