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

Karat Packaging Inc. (NASDAQ:KRT) shares were down 3% during trading on Friday following a dissappointing earnings announcement. The stock traded as low as $27.82 and last traded at $28.08. Approximately 18,801 shares traded hands during mid-day trading, a decline of 51% from the average daily volume of 38,572 shares. The stock had previously closed at $28.95.

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

Karat Packaging Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, February 28th. Investors of record on Monday, February 24th were issued a dividend of $0.45 per share. The ex-dividend date of this dividend was Monday, February 24th. This represents a $1.80 dividend on an annualized basis and a dividend yield of 6.45%. This is a positive change from Karat Packaging’s previous quarterly dividend of $0.40. Karat Packaging’s dividend payout ratio (DPR) is currently 128.57%.

Analysts Set New Price Targets

Several brokerages have weighed in on KRT. William Blair downgraded Karat Packaging from an “outperform” rating to a “market perform” rating in a research note on Thursday, January 2nd. Stifel Nicolaus lifted their price objective on shares of Karat Packaging from $32.00 to $36.00 and gave the company a “buy” rating in a research report on Wednesday, December 11th.

Hedge Funds Weigh In On Karat Packaging

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. American Century Companies Inc. boosted its stake in shares of Karat Packaging by 3.4% in the fourth quarter. American Century Companies Inc. now owns 187,549 shares of the company’s stock valued at $5,675,000 after buying an additional 6,224 shares in the last quarter. Geode Capital Management LLC lifted its holdings in Karat Packaging by 2.0% in the fourth quarter. Geode Capital Management LLC now owns 182,271 shares of the company’s stock valued at $5,517,000 after acquiring an additional 3,626 shares during the period. Dimensional Fund Advisors LP boosted its position in shares of Karat Packaging by 9.5% during the 4th quarter. Dimensional Fund Advisors LP now owns 145,946 shares of the company’s stock worth $4,416,000 after purchasing an additional 12,676 shares in the last quarter. Millennium Management LLC grew its stake in shares of Karat Packaging by 108.5% during the 4th quarter. Millennium Management LLC now owns 84,038 shares of the company’s stock worth $2,543,000 after purchasing an additional 43,740 shares during the period. Finally, Russell Investments Group Ltd. grew its stake in shares of Karat Packaging by 28.0% during the 4th quarter. Russell Investments Group Ltd. now owns 79,645 shares of the company’s stock worth $2,410,000 after purchasing an additional 17,419 shares during the period. Institutional investors and hedge funds own 25.20% of the company’s stock.

Karat Packaging Price Performance

The company has a debt-to-equity ratio of 0.29, a quick ratio of 1.82 and a current ratio of 3.12. The stock’s fifty day moving average price is $30.23 and its 200-day moving average price is $28.77. The firm has a market cap of $558.57 million, a PE ratio of 19.93 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.