Krispy Kreme (NASDAQ:DNUT) Downgraded by Zacks Research to Strong Sell

Key Points

• Krispy Kreme has been downgraded by Zacks Research from a "hold" to a "strong sell" rating, with several other brokerages adjusting their ratings and target prices.
• Currently, Krispy Kreme's stock has an average price target of $6.80 and a market cap of approximately $638.58 million, while shares opened at $3.73 on Monday.
• The company's last earnings report showed a significant loss of $0.15 per share, missing expectations, with revenue down by 13.5% from the previous year.

Krispy Kreme (NASDAQ:DNUT - Get Free Report) was downgraded by Zacks Research from a "hold" rating to a "strong sell" rating in a research note issued to investors on Monday,Zacks.com reports.

Several other brokerages have also issued reports on DNUT. Truist Financial lowered Krispy Kreme from a "buy" rating to a "hold" rating in a research report on Thursday, May 8th. Bank of America decreased their target price on Krispy Kreme from $7.00 to $6.00 and set a "buy" rating for the company in a research report on Friday, July 18th. BNP Paribas raised Krispy Kreme to a "hold" rating in a research report on Monday, July 21st. Morgan Stanley decreased their target price on Krispy Kreme from $3.00 to $2.50 and set an "overweight" rating for the company in a research report on Monday, July 14th. Finally, JPMorgan Chase & Co. reaffirmed a "neutral" rating on shares of Krispy Kreme in a research report on Wednesday, May 14th. Three analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, Krispy Kreme presently has an average rating of "Hold" and an average price target of $6.80.

Krispy Kreme Stock Up 1.1%

Shares of NASDAQ:DNUT opened at $3.73 on Monday. The stock has a market cap of $638.58 million, a price-to-earnings ratio of -1.41 and a beta of 1.32. The company has a quick ratio of 0.26, a current ratio of 0.34 and a debt-to-equity ratio of 1.24. Krispy Kreme has a 12-month low of $2.50 and a 12-month high of $12.68. The business's 50 day moving average is $3.35 and its 200 day moving average is $4.30.

Krispy Kreme (NASDAQ:DNUT - Get Free Report) last announced its quarterly earnings data on Thursday, August 7th. The company reported ($0.15) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.05) by ($0.10). Krispy Kreme had a negative net margin of 29.33% and a negative return on equity of 5.55%. The business had revenue of $379.77 million during the quarter, compared to the consensus estimate of $382.25 million. During the same quarter last year, the company earned $0.05 EPS. The firm's revenue for the quarter was down 13.5% compared to the same quarter last year. On average, sell-side analysts forecast that Krispy Kreme will post 0.07 earnings per share for the current fiscal year.

Institutional Trading of Krispy Kreme

Several hedge funds have recently made changes to their positions in the company. BNP Paribas Financial Markets bought a new stake in shares of Krispy Kreme during the 4th quarter valued at $152,305,000. Bamco Inc. NY raised its stake in shares of Krispy Kreme by 24.7% during the 4th quarter. Bamco Inc. NY now owns 13,069,717 shares of the company's stock valued at $129,782,000 after purchasing an additional 2,588,398 shares during the period. Vanguard Group Inc. raised its stake in shares of Krispy Kreme by 2.7% during the 1st quarter. Vanguard Group Inc. now owns 8,867,100 shares of the company's stock valued at $43,626,000 after purchasing an additional 233,234 shares during the period. Dimensional Fund Advisors LP raised its stake in shares of Krispy Kreme by 8.7% during the 4th quarter. Dimensional Fund Advisors LP now owns 4,191,111 shares of the company's stock valued at $41,614,000 after purchasing an additional 333,764 shares during the period. Finally, Federated Hermes Inc. raised its stake in shares of Krispy Kreme by 78.9% during the 2nd quarter. Federated Hermes Inc. now owns 3,007,345 shares of the company's stock valued at $8,751,000 after purchasing an additional 1,326,212 shares during the period. 81.72% of the stock is currently owned by institutional investors.

Krispy Kreme Company Profile

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.

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