Krispy Kreme (NASDAQ:DNUT) Trading Down 6.2% – Here’s Why

Shares of Krispy Kreme, Inc. (NASDAQ:DNUT) fell 6.2% during mid-day trading on Tuesday . The stock traded as low as $4.04 and last traded at $4.02. 1,863,022 shares were traded during trading, a decline of 41% from the average session volume of 3,137,751 shares. The stock had previously closed at $4.28.

Analyst Upgrades and Downgrades

DNUT has been the topic of several recent research reports. Truist Financial reiterated a “buy” rating and set a $12.00 price objective (down from $15.00) on shares of Krispy Kreme in a research report on Wednesday, February 26th. Piper Sandler reduced their price target on Krispy Kreme from $18.00 to $12.00 and set an “overweight” rating on the stock in a research report on Wednesday, February 26th. Finally, Morgan Stanley lowered shares of Krispy Kreme from an “equal weight” rating to an “underweight” rating and lowered their price target for the company from $12.00 to $6.00 in a report on Wednesday, February 26th. One analyst has rated the stock with a sell rating, one has assigned a hold rating, five have assigned a buy rating and one has assigned a strong buy rating to the company. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus price target of $12.29.

Krispy Kreme Price Performance

The stock has a market cap of $689.72 million, a PE ratio of 23.82, a P/E/G ratio of 3.24 and a beta of 1.47. The company has a current ratio of 0.35, a quick ratio of 0.28 and a debt-to-equity ratio of 0.67. The business has a fifty day simple moving average of $6.21 and a two-hundred day simple moving average of $8.89.

Krispy Kreme (NASDAQ:DNUT) last announced its earnings results on Tuesday, February 25th. The company reported $0.01 EPS for the quarter, missing analysts’ consensus estimates of $0.10 by ($0.09). Krispy Kreme had a net margin of 1.64% and a return on equity of 0.53%. The business had revenue of $404.00 million for the quarter, compared to the consensus estimate of $413.18 million. During the same quarter last year, the firm posted $0.09 EPS. The business’s quarterly revenue was down 10.4% on a year-over-year basis. Research analysts forecast that Krispy Kreme, Inc. will post 0.07 earnings per share for the current year.

Krispy Kreme Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, May 7th. Stockholders of record on Wednesday, April 23rd will be issued a dividend of $0.035 per share. The ex-dividend date of this dividend is Wednesday, April 23rd. This represents a $0.14 annualized dividend and a dividend yield of 3.46%. Krispy Kreme’s payout ratio is presently 700.00%.

Institutional Investors Weigh In On Krispy Kreme

Several institutional investors and hedge funds have recently made changes to their positions in DNUT. GAMMA Investing LLC raised its stake in shares of Krispy Kreme by 1,440.9% in the first quarter. GAMMA Investing LLC now owns 9,338 shares of the company’s stock worth $46,000 after purchasing an additional 8,732 shares during the last quarter. Spartan Fund Management Inc. boosted its holdings in shares of Krispy Kreme by 150.0% during the 4th quarter. Spartan Fund Management Inc. now owns 5,000 shares of the company’s stock valued at $50,000 after acquiring an additional 3,000 shares during the last quarter. Central Pacific Bank Trust Division bought a new stake in shares of Krispy Kreme in the fourth quarter worth approximately $71,000. First Hawaiian Bank purchased a new position in shares of Krispy Kreme during the fourth quarter valued at approximately $111,000. Finally, Ameriprise Financial Inc. bought a new position in Krispy Kreme during the fourth quarter valued at approximately $128,000. Institutional investors own 81.72% of the company’s stock.

About Krispy Kreme

Krispy Kreme, Inc, together with its subsidiaries, produces doughnuts in the United States, the United Kingdom, Ireland, Australia, New Zealand, Mexico, Canada, Japan, and internationally. The company operates through three segments: U.S., International, and Market Development. The company offers doughnut experiences through hot light theater and fresh shops, delivered fresh daily branded cabinets and merchandising units within grocery and convenience stores, quick service restaurants, club memberships, drug stores, and ecommerce, as well as through its branded sweet treat line comprising Krispy Kreme branded sweet treats.