Carlyle Group Inc. Buys New Stake in Krispy Kreme, Inc. $DNUT

Key Points

• Carlyle Group purchased 340,748 Krispy Kreme shares worth approximately $1.2 million, giving it a 0.20% stake. Hedge funds and other institutional investors collectively own 81.72% of DNUT.
• Krispy Kreme reported quarterly revenue of $331 million, exceeding estimates of $303.35 million, but revenue fell 12.8% year over year and the company posted a $0.03 per-share loss.
• Analyst sentiment remains cautious: DNUT has an average “Reduce” rating and a $4.33 price target, while the stock recently traded at $3.20. Director Bernardo Hees and other insiders bought a combined 880,190 shares over the past three months.

Carlyle Group Inc. purchased a new position in shares of Krispy Kreme, Inc. (NASDAQ:DNUT - Free Report) during the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission. The firm purchased 340,748 shares of the company's stock, valued at approximately $1,203,000. Krispy Kreme makes up 0.0% of Carlyle Group Inc.'s portfolio, making the stock its 12th biggest holding. Carlyle Group Inc. owned about 0.20% of Krispy Kreme at the end of the most recent quarter.

Other institutional investors and hedge funds have also recently bought and sold shares of the company. Prudential Financial Inc. acquired a new position in Krispy Kreme in the second quarter valued at $32,000. Russell Investments Group Ltd. increased its position in shares of Krispy Kreme by 1,229.5% during the third quarter. Russell Investments Group Ltd. now owns 8,469 shares of the company's stock worth $33,000 after purchasing an additional 7,832 shares in the last quarter. Captrust Financial Advisors purchased a new stake in shares of Krispy Kreme in the 2nd quarter valued at about $34,000. Apollon Wealth Management LLC purchased a new stake in shares of Krispy Kreme in the 1st quarter valued at about $35,000. Finally, Raymond James Financial Inc. acquired a new stake in shares of Krispy Kreme in the 2nd quarter valued at about $37,000. 81.72% of the stock is owned by hedge funds and other institutional investors.

Krispy Kreme Price Performance

Krispy Kreme stock opened at $3.20 on Tuesday. Krispy Kreme, Inc. has a 12 month low of $2.88 and a 12 month high of $5.11. The company has a debt-to-equity ratio of 1.28, a current ratio of 0.36 and a quick ratio of 0.29. The business has a 50 day simple moving average of $3.43 and a 200-day simple moving average of $3.41. The stock has a market capitalization of $551.68 million, a PE ratio of -5.71 and a beta of 1.27.

Krispy Kreme (NASDAQ:DNUT - Get Free Report) last issued its quarterly earnings results on Thursday, August 6th. The company reported ($0.03) earnings per share for the quarter, hitting the consensus estimate of ($0.03). The firm had revenue of $331.00 million during the quarter, compared to the consensus estimate of $303.35 million. Krispy Kreme had a negative return on equity of 1.17% and a negative net margin of 6.16%.The company's revenue for the quarter was down 12.8% on a year-over-year basis. During the same period last year, the company earned ($0.15) earnings per share. Equities analysts predict that Krispy Kreme, Inc. will post -0.07 earnings per share for the current year.

Analyst Upgrades and Downgrades

DNUT has been the subject of several research analyst reports. Evercore set a $4.00 price objective on Krispy Kreme in a report on Friday, August 7th. Zacks Research cut shares of Krispy Kreme from a "hold" rating to a "strong sell" rating in a report on Thursday, August 6th. Weiss Ratings downgraded shares of Krispy Kreme from a "sell (d)" rating to a "sell (e+)" rating in a research report on Tuesday, August 11th. Finally, Wall Street Zen cut shares of Krispy Kreme from a "hold" rating to a "sell" rating in a research note on Saturday, August 8th. Two equities research analysts have rated the stock with a Buy rating and four have issued a Sell rating to the company. According to data from MarketBeat.com, the stock has an average rating of "Reduce" and an average target price of $4.33.

Insider Transactions at Krispy Kreme

In other Krispy Kreme news, Director Bernardo Hees bought 235,875 shares of Krispy Kreme stock in a transaction on Tuesday, June 2nd. The stock was bought at an average price of $3.39 per share, with a total value of $799,616.25. Following the completion of the acquisition, the director owned 1,229,037 shares in the company, valued at $4,166,435.43. The trade was a 23.75% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Insiders acquired a total of 880,190 shares of company stock valued at $2,973,833 in the last three months. Corporate insiders own 1.60% of the company's stock.

Krispy Kreme Profile

Krispy Kreme Doughnuts, Inc NASDAQ: DNUT is a global retailer and wholesaler renowned for its signature Original Glazed doughnut and a variety of other sweet treats. The company operates through a combination of company-owned stores, franchise outlets and strategic partnerships with supermarkets, convenience stores and other foodservice channels. In addition to its doughnut portfolio, Krispy Kreme offers freshly brewed coffee, assorted beverages and proprietary seasonal items designed to drive traffic and foster brand loyalty.

Founded in 1937 in Winston-Salem, North Carolina, by Vernon Rudolph, Krispy Kreme has grown from a single local shop to a multinational brand.

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