Krispy Kreme (NASDAQ:DNUT) Reaches New 1-Year Low on Analyst Downgrade

Krispy Kreme, Inc. (NASDAQ:DNUT) reached a new 52-week low on Friday after Citigroup lowered their price target on the stock from $4.75 to $3.60. Citigroup currently has a neutral rating on the stock. Krispy Kreme traded as low as $3.02 and last traded at $3.26, with a volume of 30500178 shares changing hands. The stock had previously closed at $4.33.

Several other brokerages have also recently issued reports on DNUT. Piper Sandler reduced their price target on shares of Krispy Kreme from $18.00 to $12.00 and set an “overweight” rating on the stock in a research report on Wednesday, February 26th. Morgan Stanley cut Krispy Kreme from an “equal weight” rating to an “underweight” rating and reduced their price target for the stock from $12.00 to $6.00 in a research note on Wednesday, February 26th. Finally, Truist Financial lowered Krispy Kreme from a “buy” rating to a “hold” rating in a research report on Thursday. One analyst has rated the stock with a sell rating, three have issued a hold rating, four have assigned a buy rating and one has assigned a strong buy rating to the stock. According to MarketBeat, Krispy Kreme has a consensus rating of “Moderate Buy” and a consensus price target of $10.58.

Insider Buying and Selling

In other Krispy Kreme news, major shareholder Indulgence B.V. Jab sold 694,445 shares of the firm’s stock in a transaction on Wednesday, April 23rd. The shares were sold at an average price of $4.32, for a total value of $3,000,002.40. Following the completion of the transaction, the insider now owns 74,190,990 shares of the company’s stock, valued at approximately $320,505,076.80. This trade represents a 0.93 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. 5.30% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Krispy Kreme

A number of institutional investors have recently modified their holdings of DNUT. Spartan Fund Management Inc. grew its position 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 period. GAMMA Investing LLC raised its stake in shares of Krispy Kreme by 1,440.9% during the 1st quarter. GAMMA Investing LLC now owns 9,338 shares of the company’s stock worth $46,000 after buying an additional 8,732 shares during the period. Malaga Cove Capital LLC acquired a new position in shares of Krispy Kreme during the 1st quarter worth approximately $51,000. First Hawaiian Bank acquired a new stake in shares of Krispy Kreme in the fourth quarter valued at about $111,000. Finally, Teacher Retirement System of Texas purchased a new stake in shares of Krispy Kreme during the first quarter worth about $61,000. Hedge funds and other institutional investors own 81.72% of the company’s stock.

Krispy Kreme Price Performance

The stock’s 50 day moving average is $4.72 and its two-hundred day moving average is $7.99. The company has a debt-to-equity ratio of 0.67, a quick ratio of 0.28 and a current ratio of 0.35. The stock has a market capitalization of $465.90 million, a PE ratio of 16.06, a price-to-earnings-growth ratio of 3.24 and a beta of 1.49.

Krispy Kreme (NASDAQ:DNUT) last released its quarterly earnings data on Thursday, May 8th. The company reported ($0.05) earnings per share for the quarter, hitting analysts’ consensus estimates of ($0.05). The company had revenue of $375.18 million for the quarter, compared to analyst estimates of $383.97 million. Krispy Kreme had a return on equity of 0.53% and a net margin of 1.64%. The firm’s revenue for the quarter was down 15.2% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.07 earnings per share. On average, equities analysts anticipate that Krispy Kreme, Inc. will post 0.07 EPS for the current fiscal year.

Krispy Kreme Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, May 7th. Stockholders of record on Wednesday, April 23rd were paid a $0.035 dividend. The ex-dividend date was Wednesday, April 23rd. This represents a $0.14 dividend on an annualized basis and a dividend yield of 5.13%. Krispy Kreme’s payout ratio is presently -107.69%.

Krispy Kreme Company Profile

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.