Insider Buying: Krispy Kreme (NASDAQ:DNUT) Director Buys 235,875 Shares of Stock

Key Points

• Director Bernardo Hees bought 235,875 Krispy Kreme shares on June 2 at an average price of $3.39, a transaction worth about $799,616. The purchase lifted his direct stake to 1,229,037 shares, marking a 23.75% increase in ownership.
• The director has been aggressively buying stock throughout late May and early June, including several additional purchases of 150,000, 170,596, 73,640, and 200,989 shares. The repeated insider buying suggests confidence in Krispy Kreme’s prospects despite recent weakness in the shares.
• Krispy Kreme continues to face operating and market pressure, with shares trading around $3.27, below both the 50-day and 200-day moving averages. The company recently missed earnings per share estimates and reported negative margins, while analysts currently rate the stock a consensus Hold.

Krispy Kreme, Inc. (NASDAQ:DNUT - Get Free Report) Director Bernardo Hees acquired 235,875 shares of the company's stock in a transaction that occurred on Tuesday, June 2nd. The stock was purchased at an average cost of $3.39 per share, with a total value of $799,616.25. Following the completion of the purchase, the director directly owned 1,229,037 shares in the company, valued at $4,166,435.43. This represents a 23.75% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink.

Bernardo Hees also recently made the following trade(s):

• On Thursday, June 4th, Bernardo Hees bought 150,000 shares of Krispy Kreme stock. The shares were bought at an average price of $3.29 per share, for a total transaction of $493,500.00.
• On Wednesday, June 3rd, Bernardo Hees bought 170,596 shares of Krispy Kreme stock. The shares were bought at an average price of $3.35 per share, for a total transaction of $571,496.60.
• On Monday, June 1st, Bernardo Hees bought 73,640 shares of Krispy Kreme stock. The shares were bought at an average price of $3.44 per share, for a total transaction of $253,321.60.
• On Thursday, May 28th, Bernardo Hees bought 200,989 shares of Krispy Kreme stock. The shares were bought at an average price of $3.42 per share, for a total transaction of $687,382.38.
• On Wednesday, May 27th, Bernardo Hees bought 22,114 shares of Krispy Kreme stock. The shares were bought at an average price of $3.38 per share, for a total transaction of $74,745.32.
• On Tuesday, May 26th, Bernardo Hees bought 1,974 shares of Krispy Kreme stock. The shares were bought at an average price of $3.30 per share, for a total transaction of $6,514.20.

Krispy Kreme Price Performance

NASDAQ:DNUT traded down $0.03 during trading hours on Thursday, reaching $3.27. 1,754,618 shares of the company traded hands, compared to its average volume of 2,398,985. The firm's 50-day moving average is $3.48 and its 200-day moving average is $3.64. The stock has a market cap of $563.75 million, a P/E ratio of -1.09 and a beta of 1.27. The company has a debt-to-equity ratio of 1.31, a current ratio of 0.42 and a quick ratio of 0.36. Krispy Kreme, Inc. has a 1-year low of $2.50 and a 1-year high of $5.73.

Krispy Kreme (NASDAQ:DNUT - Get Free Report) last announced 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). The company had revenue of $367.03 million for the quarter, compared to analyst estimates of $359.42 million. Krispy Kreme had a negative net margin of 33.36% and a negative return on equity of 4.34%. Krispy Kreme's quarterly revenue was down 2.2% compared to the same quarter last year. During the same quarter last year, the company posted ($0.05) EPS. Equities research analysts expect that Krispy Kreme, Inc. will post -0.07 earnings per share for the current fiscal year.

Key Headlines Impacting Krispy Kreme

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

• Positive Sentiment: Director Bernardo Hees bought 150,000 shares on June 4, adding to a series of recent insider purchases and signaling confidence in Krispy Kreme's outlook. SEC Form 4 filing
• Positive Sentiment: Bernardo Hees also bought 170,596 shares on June 3, increasing his ownership in the company, which reinforces the bullish insider-buying trend. SEC Form 4 filing
• Positive Sentiment: The company is getting extra media attention around National Donut Day, with articles highlighting Krispy Kreme free-doughnut giveaways and promotions that could drive customer traffic and near-term sales. Yahoo Lifestyle article
• Neutral Sentiment: Several outlets are covering broader National Donut Day deals across multiple chains, which may boost awareness for Krispy Kreme but also highlights the competitive promotional environment. MSN article
• Negative Sentiment: The insider purchases do not change the company’s underlying operating challenges, and Krispy Kreme has recently reported weak profitability and negative margins, which may keep upside in check.

Analysts Set New Price Targets

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

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in DNUT. AQR Capital Management LLC purchased a new position in shares of Krispy Kreme in the 1st quarter worth $217,000. Millennium Management LLC raised its position in shares of Krispy Kreme by 522.1% in the 1st quarter. Millennium Management LLC now owns 2,093,416 shares of the company's stock worth $10,300,000 after buying an additional 1,756,932 shares during the period. Creative Planning raised its position in shares of Krispy Kreme by 568.2% in the 2nd quarter. Creative Planning now owns 67,074 shares of the company's stock worth $195,000 after buying an additional 57,036 shares during the period. Legal & General Group Plc raised its position in shares of Krispy Kreme by 44.0% in the 2nd quarter. Legal & General Group Plc now owns 137,268 shares of the company's stock worth $399,000 after buying an additional 41,929 shares during the period. Finally, Prudential Financial Inc. purchased a new position in shares of Krispy Kreme in the 2nd quarter worth $32,000. 81.72% of the stock is owned by hedge funds and other institutional investors.

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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