Karat Packaging Inc. (NASDAQ:KRT) to Issue $0.45 Quarterly Dividend

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

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. 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 Trading Up 1.1%

Shares of KRT traded up $0.31 during midday trading on Wednesday, hitting $29.68. The stock had a trading volume of 50,304 shares, compared to its average volume of 75,982. Karat Packaging has a fifty-two week low of $20.61 and a fifty-two week high of $32.68. The business has a 50-day simple moving average of $27.14 and a two-hundred day simple moving average of $24.93. The firm has a market cap of $592.53 million, a P/E ratio of 19.03, a price-to-earnings-growth ratio of 1.13 and a beta of 0.93. The company has a current ratio of 2.30, a quick ratio of 1.13 and a debt-to-equity ratio of 0.15.

Karat Packaging (NASDAQ:KRT) last announced its earnings results on Thursday, March 12th. The company reported $0.34 EPS for the quarter, topping the consensus estimate of $0.28 by $0.06. Karat Packaging had a net margin of 6.73% and a return on equity of 19.63%. The company had revenue of $115.62 million during the quarter, compared to analysts’ expectations of $113.95 million. As a group, equities analysts forecast that Karat Packaging will post 1.98 EPS for the current year.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of the company. Vanguard Group Inc. grew its stake in Karat Packaging by 12.0% in the third quarter. Vanguard Group Inc. now owns 477,450 shares of the company’s stock valued at $12,037,000 after purchasing an additional 51,179 shares in the last quarter. Wasatch Advisors LP grew its stake in shares of Karat Packaging by 3.3% in the 2nd quarter. Wasatch Advisors LP now owns 330,961 shares of the company’s stock valued at $9,320,000 after buying an additional 10,617 shares in the last quarter. Ranger Investment Management L.P. grew its stake in shares of Karat Packaging by 0.6% in the 3rd quarter. Ranger Investment Management L.P. now owns 322,536 shares of the company’s stock valued at $8,131,000 after buying an additional 1,980 shares in the last quarter. Polar Asset Management Partners Inc. grew its stake in shares of Karat Packaging by 57.1% in the 4th quarter. Polar Asset Management Partners Inc. now owns 314,100 shares of the company’s stock valued at $7,089,000 after buying an additional 114,204 shares in the last quarter. Finally, Bank of Montreal Can bought a new stake in shares of Karat Packaging in the 4th quarter valued at approximately $5,216,000. Hedge funds and other institutional investors own 25.20% of the company’s stock.

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.