Capital One Financial Cuts Krispy Kreme (NASDAQ:DNUT) Price Target to $4.00

Key Points

• Capital One Financial has reduced the price target for Krispy Kreme (NASDAQ:DNUT) from $6.00 to $4.00, while maintaining an "equal weight" rating on the stock.
• Krispy Kreme shares have declined 4.0%, trading down to $3.68, and the company reported a quarterly loss of ($0.15) earnings per share, missing estimates.
• Analyst ratings for Krispy Kreme show mixed opinions, with a consensus rating of "Hold" and an average price target of $6.45.

Krispy Kreme (NASDAQ:DNUT - Get Free Report) had its price objective cut by stock analysts at Capital One Financial from $6.00 to $4.00 in a report issued on Thursday,Briefing.com Automated Import reports. The brokerage presently has an "equal weight" rating on the stock. Capital One Financial's price target indicates a potential upside of 8.84% from the stock's current price.

Several other research firms have also commented on DNUT. Bank of America reduced their price target on shares of Krispy Kreme from $7.00 to $6.00 and set a "buy" rating for the company in a report on Friday, July 18th. JPMorgan Chase & Co. reissued an "underweight" rating on shares of Krispy Kreme in a research report on Wednesday, August 27th. Zacks Research downgraded shares of Krispy Kreme from a "hold" rating to a "strong sell" rating in a research report on Monday, August 25th. BNP Paribas Exane downgraded shares of Krispy Kreme from an "outperform" rating to a "neutral" rating and set a $3.50 price objective on the stock. in a report on Monday, July 21st. Finally, Morgan Stanley lowered their price target on shares of Krispy Kreme from $3.00 to $2.50 and set an "overweight" rating on the stock in a report on Monday, July 14th. Three equities research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and two have issued a Sell rating to the company. According to MarketBeat, the company has a consensus rating of "Hold" and an average price target of $6.45.

Krispy Kreme Stock Down 4.0%

Shares of DNUT traded down $0.16 on Thursday, hitting $3.68. 826,267 shares of the stock traded hands, compared to its average volume of 5,309,015. The company has a market capitalization of $629.16 million, a PE ratio of -1.39 and a beta of 1.34. The business has a 50 day simple moving average of $3.48 and a 200 day simple moving average of $3.62. Krispy Kreme has a one year low of $2.50 and a one year high of $12.68. The company has a debt-to-equity ratio of 1.24, a quick ratio of 0.26 and a current ratio of 0.34.

Krispy Kreme (NASDAQ:DNUT - Get Free Report) last released its earnings results on Thursday, August 7th. The company reported ($0.15) earnings per share for the quarter, missing analysts' consensus estimates of ($0.05) by ($0.10). The firm had revenue of $379.77 million for the quarter, compared to analysts' expectations of $382.25 million. Krispy Kreme had a negative net margin of 29.33% and a negative return on equity of 5.55%. The firm's quarterly revenue was down 13.5% compared to the same quarter last year. During the same quarter last year, the firm posted $0.05 EPS. As a group, equities analysts forecast that Krispy Kreme will post 0.07 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Krispy Kreme

Institutional investors have recently made changes to their positions in the stock. Millennium Management LLC boosted its stake in Krispy Kreme by 522.1% during the first quarter. Millennium Management LLC now owns 2,093,416 shares of the company's stock valued at $10,300,000 after buying an additional 1,756,932 shares in the last quarter. Federated Hermes Inc. purchased a new stake in Krispy Kreme in the 1st quarter worth about $8,271,000. Clearline Capital LP purchased a new stake in Krispy Kreme in the 1st quarter worth about $3,459,000. Balyasny Asset Management L.P. purchased a new stake in Krispy Kreme in the 2nd quarter worth about $1,567,000. Finally, Divisadero Street Capital Management LP purchased a new stake in shares of Krispy Kreme during the 2nd quarter worth about $1,455,000. 81.72% of the stock is currently owned by hedge funds and other institutional investors.

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.

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