Krispy Kreme Target of Unusually High Options Trading (NASDAQ:DNUT)

Key Points

• Krispy Kreme (NASDAQ:DNUT) experienced a significant increase in call options trading, with 10,054 call options purchased, representing a 57% rise from the average volume.
• Institutional investors own 81.72% of Krispy Kreme's stock, with several hedge funds increasing their stake, including Spartan Fund Management, which raised its position by 150%.
• Krispy Kreme reported a quarterly earnings loss of ($0.05) per share and a revenue decline of 15.2% year-over-year, falling short of analysts' revenue expectations.

Krispy Kreme, Inc. (NASDAQ:DNUT - Get Free Report) was the target of unusually large options trading activity on Monday. Stock investors purchased 10,054 call options on the company. Thisrepresentsanincreaseof57% compared to the average volume of 6,392 call options.

Wall Street Analysts Forecast Growth

A number of research analysts have recently issued reports on the stock. Citigroup dropped their price target on shares of Krispy Kreme from $4.75 to $3.60 and set a "neutral" rating on the stock in a research note on Friday, May 9th. Bank of America dropped their price target on shares of Krispy Kreme from $7.00 to $6.00 and set a "buy" rating on the stock in a research note on Friday, July 18th. Truist Financial lowered shares of Krispy Kreme from a "buy" rating to a "hold" rating in a research note on Thursday, May 8th. JPMorgan Chase & Co. reissued a "neutral" rating on shares of Krispy Kreme in a report on Wednesday, May 14th. Finally, BNP Paribas raised shares of Krispy Kreme to a "hold" rating in a report on Monday, July 21st. Six investment analysts have rated the stock with a hold rating and three have issued a buy rating to the company's stock. Based on data from MarketBeat, Krispy Kreme currently has an average rating of "Hold" and an average price target of $7.58.

Krispy Kreme Trading Down 4.7%

Shares of Krispy Kreme stock traded down $0.18 during trading hours on Thursday, hitting $3.62. The company's stock had a trading volume of 5,689,767 shares, compared to its average volume of 5,568,167. Krispy Kreme has a 1-year low of $2.50 and a 1-year high of $12.68. The business has a fifty day moving average of $3.13 and a 200 day moving average of $5.04. The company has a market capitalization of $617.79 million, a PE ratio of -27.85 and a beta of 1.29. The company has a quick ratio of 0.28, a current ratio of 0.35 and a debt-to-equity ratio of 0.83.

Krispy Kreme (NASDAQ:DNUT - Get Free Report) last released its quarterly earnings results on Thursday, May 8th. The company reported ($0.05) earnings per share for the quarter, meeting analysts' consensus estimates of ($0.05). The business had revenue of $375.18 million during the quarter, compared to analyst estimates of $383.97 million. Krispy Kreme had a negative net margin of 1.36% and a negative return on equity of 2.13%. The business's revenue was down 15.2% on a year-over-year basis. During the same period last year, the business earned $0.07 EPS. As a group, equities analysts forecast that Krispy Kreme will post 0.07 EPS for the current year.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. Spartan Fund Management Inc. grew its holdings in Krispy Kreme by 150.0% during the 4th quarter. Spartan Fund Management Inc. now owns 5,000 shares of the company's stock worth $50,000 after acquiring an additional 3,000 shares in the last quarter. GAMMA Investing LLC grew its holdings in Krispy Kreme by 1,440.9% during the 1st quarter. GAMMA Investing LLC now owns 9,338 shares of the company's stock worth $46,000 after acquiring an additional 8,732 shares in the last quarter. Vanguard Personalized Indexing Management LLC acquired a new position in Krispy Kreme during the 2nd quarter worth $30,000. Malaga Cove Capital LLC acquired a new position in Krispy Kreme during the 1st quarter worth $51,000. Finally, R Squared Ltd acquired a new position in shares of Krispy Kreme in the 2nd quarter valued at about $31,000. 81.72% of the stock is owned by institutional investors and hedge funds.

About Krispy Kreme

Krispy Kreme, Inc, together with its subsidiaries, produces doughnuts in the United States, the United Kingdom, Ireland, Australia, New Zealand, Mexico, Canada, Japan, and internationally. The company operates through three segments: U.S., International, and Market Development. The company offers doughnut experiences through hot light theater and fresh shops, delivered fresh daily branded cabinets and merchandising units within grocery and convenience stores, quick service restaurants, club memberships, drug stores, and ecommerce, as well as through its branded sweet treat line comprising Krispy Kreme branded sweet treats.