Hsbc Holdings PLC Invests $24.99 Million in Krispy Kreme, Inc. $DNUT

Key Points

• Hsbc Holdings PLC acquired 7.07 million Krispy Kreme shares worth approximately $24.99 million, giving it a 4.10% stake. Institutional investors collectively own 81.72% of DNUT.
• Krispy Kreme reported quarterly revenue of $331 million, above the $303.35 million consensus estimate, while matching expectations with an EPS loss of $0.03. Revenue declined 12.8% year over year, and analysts project a full-year EPS loss of $0.07.
• The stock opened at $3.42, near its 50- and 200-day moving averages. Analyst sentiment remains cautious, with a consensus “Reduce” rating and a $4.33 price target.

Hsbc Holdings PLC bought a new position in Krispy Kreme, Inc. (NASDAQ:DNUT - Free Report) during the second quarter, according to its most recent disclosure with the SEC. The firm bought 7,069,936 shares of the company's stock, valued at approximately $24,992,000. Hsbc Holdings PLC owned 4.10% of Krispy Kreme as of its most recent filing with the SEC.

Other institutional investors and hedge funds also recently bought and sold shares of the company. BlackRock Inc. bought a new stake in Krispy Kreme during the second quarter valued at about $23,353,000. Marshall Wace LLP bought a new position in shares of Krispy Kreme in the third quarter worth about $11,704,000. Balyasny Asset Management L.P. lifted its position in shares of Krispy Kreme by 419.2% during the 3rd quarter. Balyasny Asset Management L.P. now owns 2,795,546 shares of the company's stock valued at $10,819,000 after buying an additional 2,257,061 shares in the last quarter. Trustees of the University of Pennsylvania purchased a new position in shares of Krispy Kreme during the 4th quarter valued at about $8,077,000. Finally, Millennium Management LLC grew its stake in shares of Krispy Kreme by 522.1% during the 1st quarter. Millennium Management LLC now owns 2,093,416 shares of the company's stock valued at $10,300,000 after acquiring an additional 1,756,932 shares during the period. 81.72% of the stock is currently owned by hedge funds and other institutional investors.

Krispy Kreme Stock Performance

NASDAQ DNUT opened at $3.42 on Friday. The company has a quick ratio of 0.29, a current ratio of 0.36 and a debt-to-equity ratio of 1.28. Krispy Kreme, Inc. has a twelve month low of $2.88 and a twelve month high of $5.11. The business has a 50-day moving average price of $3.36 and a 200-day moving average price of $3.42. The firm has a market cap of $589.61 million, a price-to-earnings ratio of -6.11 and a beta of 1.27.

Krispy Kreme (NASDAQ:DNUT - Get Free Report) last issued its earnings results on Thursday, August 6th. The company reported ($0.03) earnings per share (EPS) for the quarter, meeting the consensus estimate of ($0.03). Krispy Kreme had a negative return on equity of 1.17% and a negative net margin of 6.16%.The company 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 company earned ($0.15) EPS. The firm's quarterly revenue was down 12.8% on a year-over-year basis. As a group, equities research analysts predict that Krispy Kreme, Inc. will post -0.07 EPS for the current fiscal year.

Wall Street Analyst Weigh In

Several equities research analysts recently issued reports on the stock. Zacks Research lowered shares of Krispy Kreme from a "hold" rating to a "strong sell" rating in a report on Thursday, August 6th. Wall Street Zen downgraded shares of Krispy Kreme from a "hold" rating to a "sell" rating in a report on Saturday, August 8th. Evercore set a $4.00 price target on shares of Krispy Kreme in a research report on Friday, August 7th. Finally, Weiss Ratings raised shares of Krispy Kreme from a "sell (e+)" rating to a "sell (d-)" rating in a research note on Wednesday. Two investment analysts have rated the stock with a Buy rating and three have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of "Reduce" and a consensus price target of $4.33.

Insider Transactions at Krispy Kreme

In related news, Director Bernardo Hees acquired 25,002 shares of Krispy Kreme stock in a transaction dated Friday, June 5th. The shares were purchased at an average price of $3.49 per share, for a total transaction of $87,256.98. Following the completion of the transaction, the director directly owned 1,574,635 shares in the company, valued at approximately $5,495,476.15. This represents a 1.61% increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Over the last ninety days, insiders have purchased 655,113 shares of company stock worth $2,205,191. Company insiders own 1.60% of the company's stock.

Krispy Kreme Company 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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