Karat Packaging (NASDAQ:KRT) Stock Price Down 3% After Earnings Miss

Karat Packaging Inc. (NASDAQ:KRT)’s share price fell 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. 18,801 shares changed hands during mid-day trading, a decline of 51% from the average session volume of 38,572 shares. The stock had previously closed at $28.95.

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

Karat Packaging Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, February 28th. Stockholders of record on Monday, February 24th were given a dividend of $0.45 per share. This represents a $1.80 annualized dividend and a dividend yield of 6.35%. The ex-dividend date was Monday, February 24th. This is an increase from Karat Packaging’s previous quarterly dividend of $0.40. Karat Packaging’s payout ratio is currently 128.57%.

Wall Street Analysts Forecast Growth

KRT has been the topic of a number of recent analyst reports. William Blair downgraded shares of Karat Packaging from an “outperform” rating to a “market perform” rating in a research report on Thursday, January 2nd. Stifel Nicolaus raised their price objective on Karat Packaging from $32.00 to $36.00 and gave the stock a “buy” rating in a report on Wednesday, December 11th.

Hedge Funds Weigh In On Karat Packaging

A number of institutional investors have recently modified their holdings of KRT. US Bancorp DE purchased a new position in shares of Karat Packaging during the third quarter worth about $30,000. Deutsche Bank AG lifted its position in Karat Packaging by 773.6% during the 4th quarter. Deutsche Bank AG now owns 1,590 shares of the company’s stock worth $48,000 after acquiring an additional 1,408 shares during the period. Copeland Capital Management LLC grew its stake in shares of Karat Packaging by 38.4% in the 4th quarter. Copeland Capital Management LLC now owns 2,604 shares of the company’s stock valued at $79,000 after purchasing an additional 722 shares during the last quarter. Harel Insurance Investments & Financial Services Ltd. increased its holdings in shares of Karat Packaging by 40.8% in the fourth quarter. Harel Insurance Investments & Financial Services Ltd. now owns 5,180 shares of the company’s stock valued at $157,000 after purchasing an additional 1,500 shares during the period. Finally, Comerica Bank raised its stake in shares of Karat Packaging by 107.8% during the fourth quarter. Comerica Bank now owns 5,262 shares of the company’s stock worth $159,000 after purchasing an additional 2,730 shares during the last quarter. 25.20% of the stock is owned by institutional investors and hedge funds.

Karat Packaging Price Performance

The company has a 50 day moving average price of $30.19 and a 200 day moving average price of $28.78. The company has a debt-to-equity ratio of 0.29, a current ratio of 3.12 and a quick ratio of 1.82. The firm has a market cap of $567.48 million, a PE ratio of 20.24 and a beta of 1.08.

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.