Krispy Kreme (NASDAQ:DNUT) Sees Strong Trading Volume - Here's Why

Shares of Krispy Kreme, Inc. (NASDAQ:DNUT - Get Free Report) saw unusually-high trading volume on Tuesday . Approximately 5,909,805 shares traded hands during mid-day trading, an increase of 116% from the previous session's volume of 2,737,556 shares.The stock last traded at $3.13 and had previously closed at $2.91.

Analyst Upgrades and Downgrades

Several research analysts have commented on the company. Citigroup cut their target price on Krispy Kreme from $4.75 to $3.60 and set a "neutral" rating on the stock in a report on Friday, May 9th. JPMorgan Chase & Co. reaffirmed a "neutral" rating on shares of Krispy Kreme in a research note on Wednesday, May 14th. Finally, Truist Financial lowered Krispy Kreme from a "buy" rating to a "hold" rating in a research report on Thursday, May 8th. One research analyst has rated the stock with a sell rating, four have assigned a hold rating, three have given a buy rating and one has given a strong buy rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of "Hold" and a consensus target price of $10.58.

Krispy Kreme Stock Up 1.1%

The company has a market capitalization of $550.38 million, a PE ratio of -24.83 and a beta of 1.29. The stock's fifty day moving average is $3.20 and its two-hundred day moving average is $5.89. The company has a current ratio of 0.35, a quick ratio of 0.28 and a debt-to-equity ratio of 0.83.

Krispy Kreme (NASDAQ:DNUT - Get Free Report) last released its earnings results on Thursday, May 8th. The company reported ($0.05) earnings per share for the quarter, meeting analysts' consensus estimates of ($0.05). Krispy Kreme had a negative net margin of 1.36% and a negative return on equity of 2.13%. The firm had revenue of $375.18 million for the quarter, compared to analysts' expectations of $383.97 million. During the same period in the previous year, the company earned $0.07 earnings per share. The company's quarterly revenue was down 15.2% on a year-over-year basis. As a group, analysts predict that Krispy Kreme, Inc. will post 0.07 EPS for the current year.

Insiders Place Their Bets

In related news, major shareholder Indulgence B.V. Jab sold 694,445 shares of Krispy Kreme stock in a transaction dated Wednesday, April 23rd. The stock was 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 owned 74,190,990 shares of the company's stock, valued at approximately $320,505,076.80. This trade represents a 0.93% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Company insiders own 3.00% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the business. Rhumbline Advisers raised its stake in shares of Krispy Kreme by 2.2% during the 4th quarter. Rhumbline Advisers now owns 119,083 shares of the company's stock valued at $1,182,000 after purchasing an additional 2,532 shares during the period. Handelsbanken Fonder AB boosted its position in shares of Krispy Kreme by 4.4% in the fourth quarter. Handelsbanken Fonder AB now owns 30,800 shares of the company's stock valued at $306,000 after acquiring an additional 1,300 shares during the period. Bank of New York Mellon Corp grew its stake in Krispy Kreme by 20.8% during the fourth quarter. Bank of New York Mellon Corp now owns 546,792 shares of the company's stock valued at $5,430,000 after acquiring an additional 94,000 shares in the last quarter. Edgestream Partners L.P. lifted its stake in Krispy Kreme by 158.9% in the 4th quarter. Edgestream Partners L.P. now owns 130,995 shares of the company's stock worth $1,301,000 after purchasing an additional 80,394 shares in the last quarter. Finally, OFI Invest Asset Management purchased a new position in Krispy Kreme during the fourth quarter worth about $431,000. 81.72% of the stock is currently owned by hedge funds and other institutional investors.

About Krispy Kreme

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.