Krispy Kreme (NASDAQ:DNUT) Sees Unusually-High Trading Volume - Time to Buy?

Krispy Kreme, Inc. (NASDAQ:DNUT - Get Free Report) saw strong trading volume on Monday . 5,651,024 shares changed hands during mid-day trading, an increase of 124% from the previous session's volume of 2,523,654 shares.The stock last traded at $3.10 and had previously closed at $2.73.

Analysts Set New Price Targets

A number of equities analysts have weighed in on the stock. Piper Sandler decreased their price objective on shares of Krispy Kreme from $18.00 to $12.00 and set an "overweight" rating for the company in a research report on Wednesday, February 26th. Morgan Stanley lowered shares of Krispy Kreme from an "equal weight" rating to an "underweight" rating and cut their target price for the company from $12.00 to $6.00 in a research note on Wednesday, February 26th. Truist Financial lowered shares of Krispy Kreme from a "buy" rating to a "hold" rating in a research note on Thursday. Finally, Citigroup dropped their price objective 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. One research analyst has rated the stock with a sell rating, three have given a hold rating, four have given a buy rating and one has assigned a strong buy rating to the company. According to data from MarketBeat.com, Krispy Kreme currently has a consensus rating of "Moderate Buy" and an average price target of $10.58.

Krispy Kreme Stock Up 13.7%

The firm's 50 day simple moving average is $4.72 and its 200 day simple moving average is $7.97. The company has a market cap of $529.89 million, a price-to-earnings ratio of 18.38, a price-to-earnings-growth ratio of 3.24 and a beta of 1.49. The company has a quick ratio of 0.28, a current ratio of 0.35 and a debt-to-equity ratio of 0.67.

Krispy Kreme (NASDAQ:DNUT - Get Free Report) last posted its quarterly earnings data on Thursday, May 8th. The company reported ($0.05) earnings per share (EPS) for the quarter, meeting the consensus estimate of ($0.05). The business had revenue of $375.18 million during the quarter, compared to analysts' expectations of $383.97 million. Krispy Kreme had a net margin of 1.64% and a return on equity of 0.53%. The business's revenue was down 15.2% on a year-over-year basis. During the same period last year, the firm posted $0.07 earnings per share. Sell-side analysts anticipate that Krispy Kreme, Inc. will post 0.07 EPS for the current fiscal year.

Krispy Kreme Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, May 7th. Investors of record on Wednesday, April 23rd were issued a dividend of $0.035 per share. This represents a $0.14 dividend on an annualized basis and a yield of 4.51%. The ex-dividend date of this dividend was Wednesday, April 23rd. Krispy Kreme's payout ratio is -107.69%.

Insider Buying and Selling

In related news, major shareholder Indulgence B.V. Jab sold 694,445 shares of the company's stock in a transaction that occurred on Wednesday, April 23rd. The shares were sold at an average price of $4.32, for a total value of $3,000,002.40. Following the completion of the sale, the insider now owns 74,190,990 shares in the company, valued at approximately $320,505,076.80. This represents a 0.93% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 5.30% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Krispy Kreme

Hedge funds have recently made changes to their positions in the company. Barclays PLC lifted its position in Krispy Kreme by 450.6% in the 3rd quarter. Barclays PLC now owns 169,209 shares of the company's stock worth $1,816,000 after buying an additional 138,475 shares in the last quarter. First Hawaiian Bank purchased a new stake in Krispy Kreme in the 4th quarter worth approximately $111,000. SG Americas Securities LLC lifted its position in Krispy Kreme by 264.1% in the 4th quarter. SG Americas Securities LLC now owns 83,869 shares of the company's stock worth $833,000 after buying an additional 60,833 shares in the last quarter. Rhumbline Advisers lifted its position in Krispy Kreme by 2.2% in the 4th quarter. Rhumbline Advisers now owns 119,083 shares of the company's stock worth $1,182,000 after buying an additional 2,532 shares in the last quarter. Finally, Peregrine Capital Management LLC purchased a new stake in Krispy Kreme in the 4th quarter worth approximately $5,897,000. Hedge funds and other institutional investors own 81.72% of the company's stock.

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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