Krispy Kreme, Inc. (NASDAQ:DNUT) Receives Consensus Rating of "Reduce" from Analysts

Key Points

• Analysts hold a consensus “Reduce” rating on Krispy Kreme, with four sell ratings and two buy ratings. The average 12-month price target is $4.33.
• Krispy Kreme reported quarterly revenue of $331 million, exceeding estimates of $303.35 million, while adjusted earnings met expectations at a loss of $0.03 per share. Revenue declined 12.8% year over year, and analysts expect a full-year loss.
• The stock opened at $3.59, near its 50-day and 200-day moving averages, with a 52-week range of $2.88 to $5.11. Insiders have recently increased their holdings, purchasing 880,190 shares over the past 90 days.

Krispy Kreme, Inc. (NASDAQ:DNUT - Get Free Report) has received an average recommendation of "Reduce" from the six analysts that are presently covering the firm, MarketBeat.com reports. Four investment analysts have rated the stock with a sell rating and two have given a buy rating to the company. The average twelve-month target price among analysts that have covered the stock in the last year is $4.3333.

A number of research analysts recently weighed in on DNUT shares. Evercore set a $4.00 price objective on shares of Krispy Kreme in a report on Friday, August 7th. Zacks Research lowered Krispy Kreme from a "hold" rating to a "strong sell" rating in a research report on Thursday, August 6th. Wall Street Zen lowered Krispy Kreme from a "hold" rating to a "sell" rating in a report on Saturday, August 8th. Finally, Weiss Ratings cut Krispy Kreme from a "sell (d)" rating to a "sell (e+)" rating in a research note on Tuesday, August 11th.

Krispy Kreme Price Performance

Krispy Kreme stock opened at $3.59 on Friday. The company's 50 day simple moving average is $3.39 and its 200-day simple moving average is $3.41. The company has a debt-to-equity ratio of 1.28, a quick ratio of 0.29 and a current ratio of 0.36. Krispy Kreme has a 1 year low of $2.88 and a 1 year high of $5.11. The company has a market capitalization of $618.92 million, a price-to-earnings ratio of -6.41 and a beta of 1.27.

Krispy Kreme (NASDAQ:DNUT - Get Free Report) last posted its earnings results on Thursday, August 6th. The company reported ($0.03) earnings per share for the quarter, meeting the consensus estimate of ($0.03). Krispy Kreme had a negative net margin of 6.16% and a negative return on equity of 1.17%. The firm had revenue of $331.00 million during the quarter, compared to the consensus estimate of $303.35 million. During the same quarter last year, the firm earned ($0.15) EPS. The firm's revenue for the quarter was down 12.8% on a year-over-year basis. As a group, equities research analysts expect that Krispy Kreme will post -0.07 earnings per share for the current year.

Insider Activity

In other Krispy Kreme news, Director Bernardo Hees acquired 235,875 shares of the company's stock in a transaction dated Tuesday, June 2nd. The shares were acquired at an average price of $3.39 per share, for a total transaction of $799,616.25. Following the acquisition, the director owned 1,229,037 shares in the company, valued at $4,166,435.43. The trade was a 23.75% increase in their position. The purchase was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Over the last ninety days, insiders bought 880,190 shares of company stock worth $2,973,833. Corporate insiders own 1.60% of the company's stock.

Institutional Investors Weigh In On Krispy Kreme

Several institutional investors have recently added to or reduced their stakes in the business. Allworth Financial LP purchased a new position in Krispy Kreme in the second quarter valued at approximately $25,000. Russell Investments Group Ltd. raised its holdings in 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 purchasing an additional 7,832 shares in the last quarter. Apollon Wealth Management LLC purchased a new stake in shares of Krispy Kreme during the 1st quarter worth approximately $35,000. Coastal Bridge Advisors LLC purchased a new stake in shares of Krispy Kreme during the 2nd quarter worth approximately $37,000. Finally, Prudential Financial Inc. purchased a new stake in shares of Krispy Kreme during the 2nd quarter worth approximately $32,000. Hedge funds and other institutional investors own 81.72% 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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