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

Key Points

• Zacks Research downgraded Krispy Kreme to “strong sell” from “hold.” Other analysts have also taken a cautious stance, leaving the stock with a consensus “Reduce” rating and a $4.33 target price.
• Krispy Kreme shares opened at $3.34, near their 52-week low, with a market capitalization of about $576 million. The company remains unprofitable, carrying a negative net margin and a debt-to-equity ratio of 1.31.
• Quarterly revenue totaled $331 million, exceeding expectations, while the company reported an adjusted loss of $0.03 per share; however, revenue declined 12.8% year over year. Insiders purchased 880,190 shares over the past quarter, indicating some internal confidence despite broad analyst concerns.

Krispy Kreme (NASDAQ:DNUT - Get Free Report) was downgraded by equities research analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a report released on Thursday,Zacks.com reports.

Other equities research analysts have also issued research reports about the stock. Evercore set a $4.00 price target on shares of Krispy Kreme in a report on Friday. Weiss Ratings reaffirmed a "sell (d)" rating on shares of Krispy Kreme in a report on Wednesday, June 24th. Finally, Wall Street Zen lowered shares of Krispy Kreme from a "hold" rating to a "sell" rating in a research report on Saturday. Two investment analysts have rated the stock with a Buy rating and four have issued a Sell rating to the company's stock. According to MarketBeat, the company presently has a consensus rating of "Reduce" and a consensus target price of $4.33.

Krispy Kreme Price Performance

Shares of NASDAQ:DNUT opened at $3.34 on Thursday. Krispy Kreme has a 1-year low of $2.88 and a 1-year high of $5.11. The firm has a market capitalization of $575.82 million, a PE ratio of -5.96 and a beta of 1.27. The business's 50 day moving average is $3.46 and its 200-day moving average is $3.41. The company has a current ratio of 0.42, a quick ratio of 0.36 and a debt-to-equity ratio of 1.31.

Krispy Kreme (NASDAQ:DNUT - Get Free Report) last released its quarterly earnings data on Thursday, August 6th. The company reported ($0.03) earnings per share (EPS) for the quarter, meeting analysts' consensus estimates of ($0.03). The business had revenue of $331.00 million for the quarter, compared to analysts' expectations of $303.35 million. Krispy Kreme had a negative return on equity of 1.15% and a negative net margin of 6.16%.Krispy Kreme's quarterly revenue was down 12.8% on a year-over-year basis. During the same period in the previous year, the business posted ($0.15) earnings per share. Sell-side analysts predict that Krispy Kreme will post -0.07 earnings per share for the current year.

Insiders Place Their Bets

In other news, Director Bernardo Hees acquired 25,002 shares of the firm's stock in a transaction on Friday, June 5th. The shares were purchased at an average cost of $3.49 per share, with a total value of $87,256.98. Following the completion of the purchase, the director owned 1,574,635 shares of the company's stock, valued at $5,495,476.15. This represents a 1.61% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Insiders have bought 880,190 shares of company stock worth $2,973,833 over the last quarter. 1.60% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of DNUT. Deutsche Bank AG raised its position in Krispy Kreme by 4.5% in the 4th quarter. Deutsche Bank AG now owns 83,611 shares of the company's stock worth $336,000 after purchasing an additional 3,638 shares during the last quarter. Russell Investments Group Ltd. boosted its position in Krispy Kreme by 1,229.5% in the 3rd quarter. Russell Investments Group Ltd. now owns 8,469 shares of the company's stock valued at $33,000 after buying an additional 7,832 shares during the last quarter. Price T Rowe Associates Inc. MD increased its stake in shares of Krispy Kreme by 21.2% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 47,672 shares of the company's stock valued at $192,000 after buying an additional 8,351 shares during the period. Raymond James Financial Inc. increased its stake in shares of Krispy Kreme by 69.1% in the 3rd quarter. Raymond James Financial Inc. now owns 21,287 shares of the company's stock valued at $82,000 after buying an additional 8,701 shares during the period. Finally, Nuveen LLC raised its position in shares of Krispy Kreme by 5.6% during the fourth quarter. Nuveen LLC now owns 165,576 shares of the company's stock worth $666,000 after acquiring an additional 8,735 shares during the last quarter. 81.72% of the stock is owned by institutional investors and hedge funds.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source