Krispy Kreme (NASDAQ:DNUT) Stock Rating Upgraded by Zacks Research

Key Points

• Zacks Research upgraded Krispy Kreme from “strong sell” to “hold,” though the broader analyst consensus remains “Reduce” with a $4.33 price target.
• Krispy Kreme shares opened at $3.05, up 4.8%, while the company reported quarterly revenue of $331 million and an adjusted loss of $0.03 per share; revenue declined 12.8% year over year.
• Institutional investors own 81.72% of the stock, with HSBC and BlackRock among the major funds that recently established positions.

Krispy Kreme (NASDAQ:DNUT - Get Free Report) was upgraded by analysts at Zacks Research from a "strong sell" rating to a "hold" rating in a research note issued to investors on Tuesday, Zacks reports.

Other analysts also recently issued reports about the company. Evercore set a $4.00 price objective on Krispy Kreme in a research report on Friday, August 7th. Weiss Ratings cut Krispy Kreme from a "sell (d-)" rating to a "sell (e+)" rating in a research report on Friday, October 16th. Finally, Wall Street Zen downgraded Krispy Kreme from a "hold" rating to a "sell" rating in a research note on Saturday, August 8th. One research analyst has rated the stock with a Buy rating, one has given a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, the company currently has an average rating of "Reduce" and a consensus price target of $4.33.

Krispy Kreme Stock Up 4.8%

Shares of DNUT opened at $3.05 on Tuesday. The firm has a 50 day simple moving average of $3.13 and a two-hundred day simple moving average of $3.36. The company has a debt-to-equity ratio of 1.28, a current ratio of 0.36 and a quick ratio of 0.29. Krispy Kreme has a one year low of $2.81 and a one year high of $4.75. The company has a market cap of $525.82 million, a P/E ratio of -5.45 and a beta of 1.25.

Krispy Kreme (NASDAQ:DNUT - Get Free Report) last issued its earnings results on Thursday, August 6th. The company reported ($0.03) earnings per share for the quarter, meeting analysts' consensus estimates of ($0.03). Krispy Kreme had a negative return on equity of 1.17% and a negative net margin of 6.16%. The firm had revenue of $331.00 million for the quarter, compared to the consensus estimate of $303.35 million. During the same quarter last year, the business posted ($0.15) EPS. The company's revenue was down 12.8% compared to the same quarter last year. Research analysts forecast that Krispy Kreme will post -0.06 EPS for the current fiscal year.

Institutional Investors Weigh In On Krispy Kreme

Hedge funds have recently modified their holdings of the company. Hsbc Holdings PLC bought a new stake in Krispy Kreme during the 2nd quarter worth approximately $24,992,000. BlackRock Inc. acquired a new position in Krispy Kreme in the 2nd quarter valued at approximately $23,353,000. AlpInvest Partners B.V. bought a new position in shares of Krispy Kreme during the second quarter valued at $2,231,000. Squarepoint Ops LLC raised its stake in shares of Krispy Kreme by 138.5% during the second quarter. Squarepoint Ops LLC now owns 566,309 shares of the company's stock valued at $1,999,000 after acquiring an additional 328,885 shares during the last quarter. Finally, Lazard Asset Management LLC bought a new position in shares of Krispy Kreme during the first quarter valued at $1,883,000. Institutional investors and hedge funds own 81.72% of the company's stock.

Krispy Kreme Company Profile

Krispy Kreme, Inc is a global doughnut and coffee company best known for its Original Glazed doughnuts. The company sells doughnuts, packaged sweets, coffee and other beverages through Krispy Kreme shops, in-store retail displays and digital ordering channels.

Krispy Kreme operates a hub-and-spoke distribution model that combines doughnut-making hubs and shops with delivery to grocery stores, convenience stores and other retail locations. Its products are also distributed through partnerships and branded locations, allowing the company to expand its reach beyond traditional Krispy Kreme shops.

Founded in 1937 in Winston-Salem, North Carolina, by Vernon Rudolph, Krispy Kreme has grown into an international brand serving customers in the United States and various markets across North America, Europe, Asia and Oceania.

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