UBS Group AG Sells 558,197 Shares of Krispy Kreme, Inc. $DNUT

Key Points

• UBS Group AG cut its Krispy Kreme stake sharply in the fourth quarter, selling 558,197 shares and reducing its holdings by 47.1% to 625,724 shares worth about $2.5 million.
• Analyst sentiment remains mixed to cautious, with Krispy Kreme carrying an average Hold rating and a consensus price target of $4.63 after recent rating changes from several firms.
• Recent earnings were weaker than expected, as the company posted a loss of $0.05 per share versus estimates for a $0.03 loss, even though revenue came in slightly above forecasts at $367.03 million.

UBS Group AG decreased its holdings in shares of Krispy Kreme, Inc. (NASDAQ:DNUT - Free Report) by 47.1% in the fourth quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 625,724 shares of the company's stock after selling 558,197 shares during the period. UBS Group AG owned about 0.37% of Krispy Kreme worth $2,515,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also recently added to or reduced their stakes in DNUT. Russell Investments Group Ltd. increased its holdings 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 buying an additional 7,832 shares in the last quarter. FNY Investment Advisers LLC acquired a new stake in shares of Krispy Kreme during the fourth quarter worth approximately $40,000. Prudential Financial Inc. acquired a new stake in shares of Krispy Kreme during the second quarter worth approximately $32,000. Captrust Financial Advisors acquired a new stake in shares of Krispy Kreme during the second quarter worth approximately $34,000. Finally, Raymond James Financial Inc. acquired a new stake in shares of Krispy Kreme during the second quarter worth approximately $37,000. Institutional investors own 81.72% of the company's stock.

Analyst Ratings Changes

Several research firms have recently weighed in on DNUT. Zacks Research lowered shares of Krispy Kreme from a "strong-buy" rating to a "hold" rating in a report on Friday, May 15th. Weiss Ratings reaffirmed a "sell (d)" rating on shares of Krispy Kreme in a report on Friday, March 27th. Wall Street Zen raised shares of Krispy Kreme from a "sell" rating to a "hold" rating in a report on Sunday, May 17th. Finally, Capital One Financial raised shares of Krispy Kreme from an "equal weight" rating to an "overweight" rating and set a $6.00 price objective for the company in a report on Thursday, March 26th. Three equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and three have assigned a Sell rating to the company. According to data from MarketBeat.com, Krispy Kreme presently has an average rating of "Hold" and a consensus price target of $4.63.

Krispy Kreme Price Performance

DNUT opened at $3.37 on Wednesday. The company has a fifty day moving average price of $3.49 and a two-hundred day moving average price of $3.67. The company has a debt-to-equity ratio of 1.31, a quick ratio of 0.36 and a current ratio of 0.42. Krispy Kreme, Inc. has a 52 week low of $2.50 and a 52 week high of $5.73. The firm has a market capitalization of $580.99 million, a PE ratio of -1.13 and a beta of 1.32.

Krispy Kreme (NASDAQ:DNUT - Get Free Report) last released its earnings results on Thursday, May 7th. The company reported ($0.05) EPS for the quarter, missing analysts' consensus estimates of ($0.03) by ($0.02). Krispy Kreme had a negative return on equity of 4.34% and a negative net margin of 33.36%.The business had revenue of $367.03 million for the quarter, compared to analyst estimates of $359.42 million. During the same period in the prior year, the firm posted ($0.05) EPS. Krispy Kreme's revenue was down 2.2% on a year-over-year basis. As a group, analysts anticipate that Krispy Kreme, Inc. will post -0.01 earnings per share for the current year.

Krispy Kreme News Summary

Here are the key news stories impacting Krispy Kreme this week:

• Positive Sentiment: Krispy Kreme launched a limited-edition He-Man / Masters of the Universe doughnut lineup, a promotional partnership that could support store traffic and brand visibility. Krispy Kreme Announces New Lineup Inspired by Upcoming He-Man Movie
• Positive Sentiment: Additional coverage of the new movie-themed doughnuts reinforces the promotional push and may help keep investor attention on sales-driving marketing activity. Krispy Kreme Launches Limited-Edition He-Man Doughnuts Inspired by New Movie
• Positive Sentiment: The Masters of the Universe doughnut collection may provide a near-term merchandising lift if the tie-in resonates with customers and supports incremental purchases. Krispy Kreme Debuts New “Masters of the Universe ”Doughnut Collection — See All 3 Flavors
• Neutral Sentiment: Several outlets reported details on a $1.6 million class-action settlement, including eligibility and claim deadlines, which keeps legal issues in the spotlight but does not appear large enough to materially change the company’s financial outlook. Krispy Kreme $1.6 Million Settlement: Americans Get June Deadline To Apply
• Negative Sentiment: The class-action payout tied to a data breach is a reputational and legal overhang, even though the settlement size is modest relative to Krispy Kreme’s overall valuation. Krispy Kreme customers may be eligible for a $3,500 class action payout after massive data breach

About Krispy Kreme

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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