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

Karat Packaging Inc. (NASDAQ:KRT)’s stock price dropped 3% on Friday after the company announced weaker than expected quarterly earnings. The stock traded as low as $27.82 and last traded at $28.08. Approximately 18,801 shares changed hands during 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 for the quarter, missing analysts’ consensus estimates of $0.43 by ($0.14). Karat Packaging had a net margin of 6.78% and a return on equity of 19.84%. The business had revenue of $101.65 million during the quarter, compared to the consensus estimate of $102.27 million.

Karat Packaging Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, February 28th. Investors of record on Monday, February 24th were paid a $0.45 dividend. This represents a $1.80 dividend on an annualized basis and a yield of 6.35%. The ex-dividend date was Monday, February 24th. This is a boost from Karat Packaging’s previous quarterly dividend of $0.40. Karat Packaging’s dividend payout ratio is 128.57%.

Wall Street Analysts Forecast Growth

A number of research firms have recently weighed in on KRT. William Blair downgraded Karat Packaging from an “outperform” rating to a “market perform” rating in a report on Thursday, January 2nd. Stifel Nicolaus lifted their target price on Karat Packaging from $32.00 to $36.00 and gave the stock a “buy” rating in a report on Wednesday, December 11th.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the stock. Copeland Capital Management LLC increased its position in shares of Karat Packaging by 38.4% in the fourth quarter. Copeland Capital Management LLC now owns 2,604 shares of the company’s stock worth $79,000 after purchasing an additional 722 shares during the period. Wells Fargo & Company MN grew its position in Karat Packaging by 20.8% in the fourth quarter. Wells Fargo & Company MN now owns 5,538 shares of the company’s stock valued at $168,000 after acquiring an additional 955 shares during the last quarter. Charles Schwab Investment Management Inc. grew its position in Karat Packaging by 5.6% in the third quarter. Charles Schwab Investment Management Inc. now owns 19,720 shares of the company’s stock valued at $511,000 after acquiring an additional 1,053 shares during the last quarter. Janney Montgomery Scott LLC grew its position in Karat Packaging by 4.2% in the third quarter. Janney Montgomery Scott LLC now owns 28,488 shares of the company’s stock valued at $738,000 after acquiring an additional 1,148 shares during the last quarter. Finally, US Bancorp DE bought a new position in Karat Packaging in the third quarter valued at about $30,000. Institutional investors own 25.20% of the company’s stock.

Karat Packaging Stock Performance

The stock has a 50-day simple moving average of $30.19 and a 200-day simple moving average of $28.80. The stock has a market cap of $567.48 million, a P/E ratio of 20.24 and a beta of 1.08. The company has a debt-to-equity ratio of 0.29, a current ratio of 3.12 and a quick ratio of 1.82.

About Karat Packaging

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.