Stock Traders Buy High Volume of Call Options on Krispy Kreme (NASDAQ:DNUT)

Krispy Kreme, Inc. (NASDAQ:DNUT) saw some unusual options trading activity on Tuesday. Traders bought 5,012 call options on the company. This is an increase of approximately 454% compared to the typical daily volume of 905 call options.

Krispy Kreme Stock Performance

Shares of DNUT stock opened at $5.97 on Thursday. The firm has a 50 day moving average of $9.04 and a two-hundred day moving average of $10.37. The stock has a market capitalization of $1.01 billion, a PE ratio of 35.12, a P/E/G ratio of 3.24 and a beta of 1.34. The company has a quick ratio of 0.28, a current ratio of 0.35 and a debt-to-equity ratio of 0.67. Krispy Kreme has a 52 week low of $5.95 and a 52 week high of $17.84.

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

Krispy Kreme Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, May 7th. Investors of record on Wednesday, April 23rd will be paid a dividend of $0.035 per share. The ex-dividend date of this dividend is Wednesday, April 23rd. This represents a $0.14 dividend on an annualized basis and a dividend yield of 2.35%. Krispy Kreme’s payout ratio is 82.35%.

Analysts Set New Price Targets

A number of equities research analysts have weighed in on the stock. JPMorgan Chase & Co. dropped their price target on shares of Krispy Kreme from $14.00 to $13.00 and set an “overweight” rating for the company in a research report on Tuesday, November 12th. Piper Sandler lowered their price objective on shares of Krispy Kreme from $18.00 to $12.00 and set an “overweight” rating for the company in a research report on Wednesday. Morgan Stanley lowered Krispy Kreme from an “equal weight” rating to an “underweight” rating and cut their target price for the company from $12.00 to $6.00 in a research report on Wednesday. Finally, Truist Financial restated a “buy” rating and set a $12.00 price target (down from $15.00) on shares of Krispy Kreme in a research report on Wednesday. One investment analyst has rated the stock with a sell rating, two have given a hold rating, five have assigned a buy rating and one has given a strong buy rating to the company’s stock. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $13.13.

Institutional Trading of Krispy Kreme

Several hedge funds have recently added to or reduced their stakes in DNUT. Blue Trust Inc. increased its position in shares of Krispy Kreme by 28.3% in the 3rd quarter. Blue Trust Inc. now owns 8,064 shares of the company’s stock valued at $87,000 after purchasing an additional 1,779 shares during the last quarter. Walkner Condon Financial Advisors LLC acquired a new stake in shares of Krispy Kreme during the 3rd quarter worth about $346,000. Versor Investments LP purchased a new stake in Krispy Kreme during the third quarter worth approximately $411,000. Sargent Investment Group LLC acquired a new position in Krispy Kreme in the third quarter valued at approximately $215,000. Finally, Connable Office Inc. increased its stake in Krispy Kreme by 98.3% in the third quarter. Connable Office Inc. now owns 29,968 shares of the company’s stock valued at $322,000 after purchasing an additional 14,859 shares during the last quarter. Institutional investors and hedge funds 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.