Krispy Kreme, Inc. (NASDAQ:DNUT) Given Average Rating of "Reduce" by Brokerages

Key Points

• Analyst sentiment is negative: Krispy Kreme has a consensus “Reduce” rating from six brokerages, with three sells, one hold and two buys. The average 12-month price target is $4.50 versus the reported share price of $3.27.
• Recent financial performance remains weak: The company reported a quarterly loss of $0.05 per share, missing estimates by $0.02, while revenue fell 2.2% year over year to $367.03 million. Analysts expect a full-year loss of $0.07 per share.
• Insiders have been buying: Director Bernardo Hees purchased 25,002 shares, and insiders bought 880,190 shares worth about $3.0 million over the past three months. Institutional investors and hedge funds own 81.72% of the stock.

Krispy Kreme, Inc. (NASDAQ:DNUT - Get Free Report) has received a consensus rating of "Reduce" from the six research firms that are presently covering the firm, Marketbeat reports. Three equities research analysts have rated the stock with a sell rating, one has given a hold rating and two have given a buy rating to the company. The average 12 month target price among analysts that have issued a report on the stock in the last year is $4.50.

A number of equities analysts have commented on the stock. Zacks Research downgraded shares of Krispy Kreme from a "strong-buy" rating to a "hold" rating in a report on Friday, May 15th. Weiss Ratings reissued a "sell (d)" rating on shares of Krispy Kreme in a research report on Wednesday, June 24th. Finally, Wall Street Zen upgraded shares of Krispy Kreme from a "sell" rating to a "hold" rating in a report on Sunday, May 17th.

Insider Buying and Selling

In other news, Director Bernardo Hees bought 25,002 shares of the firm's stock in a transaction that occurred on Friday, June 5th. The stock was bought at an average price of $3.49 per share, with a total value of $87,256.98. Following the completion of the transaction, the director directly owned 1,574,635 shares of the company's stock, valued at approximately $5,495,476.15. The trade was a 1.61% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Insiders have purchased a total of 880,190 shares of company stock worth $2,973,833 over the last three months. Corporate insiders own 1.60% of the company's stock.

Hedge Funds Weigh In On Krispy Kreme

A number of large investors have recently made changes to their positions in DNUT. Lazard Asset Management LLC purchased a new stake in shares of Krispy Kreme during the 1st quarter valued at $1,883,000. R Squared Ltd boosted its position in shares of Krispy Kreme by 48.0% in the 1st quarter. R Squared Ltd now owns 34,012 shares of the company's stock worth $115,000 after purchasing an additional 11,029 shares in the last quarter. Abel Hall LLC purchased a new position in Krispy Kreme during the 1st quarter worth $45,000. AdvisorShares Investments LLC purchased a new position in Krispy Kreme during the 1st quarter worth $102,000. Finally, Apollon Wealth Management LLC acquired a new position in Krispy Kreme during the 1st quarter valued at about $35,000. 81.72% of the stock is owned by institutional investors and hedge funds.

Krispy Kreme Stock Up 0.3%

Krispy Kreme stock opened at $3.27 on Wednesday. The company has a quick ratio of 0.36, a current ratio of 0.42 and a debt-to-equity ratio of 1.31. The firm has a market cap of $563.75 million, a P/E ratio of -1.09 and a beta of 1.26. The business has a fifty day moving average of $3.49 and a two-hundred day moving average of $3.46. Krispy Kreme has a twelve month low of $2.88 and a twelve month high of $5.11.

Krispy Kreme (NASDAQ:DNUT - Get Free Report) last released its quarterly earnings results on Thursday, May 7th. The company reported ($0.05) EPS for the quarter, missing the consensus estimate of ($0.03) by ($0.02). The company had revenue of $367.03 million during the quarter, compared to the consensus estimate of $359.42 million. Krispy Kreme had a negative return on equity of 4.34% and a negative net margin of 33.36%.The company's revenue was down 2.2% on a year-over-year basis. During the same period in the previous year, the firm posted ($0.05) earnings per share. On average, analysts forecast that Krispy Kreme will post -0.07 earnings per share for the current fiscal year.

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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