Krispy Kreme, Inc. (NASDAQ:DNUT) Stock Has Average Price Target of $4.45 According to Brokerages

Key Points

• Analyst sentiment is cautious: Five firms give Krispy Kreme a consensus “Reduce” rating—two sell, two hold and one buy—with an average 12-month price target of $4.45.
• The stock traded at $4.08, within its 12-month range of $2.81 to $5.03. Citigroup raised its price target to $4.80 and rated the shares neutral, while other firms made mixed rating changes.
• Krispy Kreme beat quarterly earnings and revenue estimates, reporting EPS of $0.06 and revenue of $328.76 million, but revenue fell 12.4% year over year.

Shares of Krispy Kreme, Inc. (NASDAQ:DNUT - Get Free Report) have been assigned a consensus recommendation of "Reduce" from the five research firms that are currently covering the firm, MarketBeat reports. Two investment analysts have rated the stock with a sell recommendation, two have assigned a hold recommendation and one has issued a buy recommendation on the company. The average 1-year price target among analysts that have issued ratings on the stock in the last year is $4.45.

A number of brokerages have weighed in on DNUT. Wall Street Zen raised shares of Krispy Kreme from a "sell" rating to a "hold" rating in a report on Saturday. Evercore set a $4.00 price objective on shares of Krispy Kreme in a report on Friday, August 7th. Citigroup upped their price objective on shares of Krispy Kreme from $4.00 to $4.80 and gave the company a "neutral" rating in a research report on Monday. Weiss Ratings cut shares of Krispy Kreme from a "sell (d-)" rating to a "sell (e+)" rating in a research note on Friday, October 16th. Finally, Zacks Research upgraded shares of Krispy Kreme from a "strong sell" rating to a "hold" rating in a research note on Tuesday, October 27th.

Institutional Trading of Krispy Kreme

A number of institutional investors and hedge funds have recently modified their holdings of DNUT. Allworth Financial LP boosted its stake in Krispy Kreme by 83.7% during the second quarter. Allworth Financial LP now owns 7,031 shares of the company's stock worth $25,000 after buying an additional 3,204 shares in the last quarter. AXQ Capital LP lifted its holdings in shares of Krispy Kreme by 44.5% during the 2nd quarter. AXQ Capital LP now owns 22,600 shares of the company's stock worth $80,000 after acquiring an additional 6,955 shares during the period. State of Alaska Department of Revenue bought a new position in shares of Krispy Kreme during the 3rd quarter worth about $27,000. Coastal Bridge Advisors LLC acquired a new stake in shares of Krispy Kreme during the 2nd quarter valued at about $37,000. Finally, Ground Swell Capital LLC acquired a new stake in shares of Krispy Kreme during the 3rd quarter valued at about $32,000. 81.72% of the stock is currently owned by institutional investors.

Krispy Kreme Stock Performance

NASDAQ:DNUT traded down $0.10 during mid-day trading on Monday, hitting $4.08. 1,578,075 shares of the company's stock traded hands, compared to its average volume of 2,705,462. The firm has a 50 day moving average of $3.14 and a two-hundred day moving average of $3.34. Krispy Kreme has a 12 month low of $2.81 and a 12 month high of $5.03. The firm has a market capitalization of $702.53 million, a price-to-earnings ratio of -7.69 and a beta of 1.29. The company has a current ratio of 0.36, a quick ratio of 0.29 and a debt-to-equity ratio of 1.28.

Krispy Kreme (NASDAQ:DNUT - Get Free Report) last issued its quarterly earnings results on Thursday, November 5th. The company reported $0.06 EPS for the quarter, topping the consensus estimate of $0.01 by $0.05. The company had revenue of $328.76 million for the quarter, compared to the consensus estimate of $311.41 million. Krispy Kreme had a negative return on equity of 0.28% and a negative net margin of 5.94%. The company's revenue for the quarter was down 12.4% on a year-over-year basis. During the same period in the previous year, the business posted $0.01 EPS. On average, equities analysts forecast that Krispy Kreme will post -0.06 earnings per share for the current fiscal year.

About Krispy Kreme

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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