Krispy Kreme (NASDAQ:DNUT) Cut to “Underweight” at Morgan Stanley

Morgan Stanley downgraded shares of Krispy Kreme (NASDAQ:DNUT) from an equal weight rating to an underweight rating in a report published on Wednesday, MarketBeat reports. The firm currently has $6.00 price target on the stock, down from their prior price target of $12.00.

Separately, JPMorgan Chase & Co. lowered their target price on shares of Krispy Kreme from $14.00 to $13.00 and set an “overweight” rating on the stock in a research report on Tuesday, November 12th. One equities research analyst has rated the stock with a sell rating, two have issued a hold rating, five have issued a buy rating and one has assigned a strong buy rating to the company. According to data from MarketBeat.com, Krispy Kreme currently has a consensus rating of “Moderate Buy” and a consensus target price of $13.13.

Krispy Kreme Stock Performance

Shares of Krispy Kreme stock opened at $6.21 on Wednesday. The firm has a market capitalization of $1.06 billion, a P/E ratio of 36.53, a P/E/G ratio of 3.24 and a beta of 1.34. Krispy Kreme has a 52 week low of $5.88 and a 52 week high of $17.84. The company has a quick ratio of 0.28, a current ratio of 0.35 and a debt-to-equity ratio of 0.67. The firm’s 50 day moving average is $8.90 and its two-hundred day moving average is $10.32.

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

Krispy Kreme Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, May 7th. Shareholders of record on Wednesday, April 23rd will be issued a $0.035 dividend. This represents a $0.14 dividend on an annualized basis and a yield of 2.25%. The ex-dividend date of this dividend is Wednesday, April 23rd. Krispy Kreme’s dividend payout ratio (DPR) is currently 82.35%.

Institutional Investors Weigh In On Krispy Kreme

Hedge funds and other institutional investors have recently bought and sold shares of the business. Spartan Fund Management Inc. lifted its holdings in Krispy Kreme by 150.0% in the fourth 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 period. Point72 DIFC Ltd acquired a new position in shares of Krispy Kreme during the 3rd quarter worth $51,000. Central Pacific Bank Trust Division acquired a new position in shares of Krispy Kreme during the 4th quarter worth $71,000. Blue Trust Inc. raised its stake in shares of Krispy Kreme by 28.3% during the 3rd quarter. Blue Trust Inc. now owns 8,064 shares of the company’s stock worth $87,000 after buying an additional 1,779 shares during the last quarter. Finally, First Hawaiian Bank acquired a new position in shares of Krispy Kreme during the 4th quarter worth $111,000. 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.