Krispy Kreme (NASDAQ:DNUT) Shares Down 5.9% Following Analyst Downgrade

Krispy Kreme, Inc. (NASDAQ:DNUT - Get Free Report) traded down 5.9% during mid-day trading on Monday after Morgan Stanley lowered their price target on the stock from $3.00 to $2.50. Morgan Stanley currently has an overweight rating on the stock. Krispy Kreme traded as low as $3.14 and last traded at $3.14. 656,082 shares were traded during mid-day trading, a decline of 76% from the average session volume of 2,777,100 shares. The stock had previously closed at $3.33.

DNUT has been the subject of several other research reports. JPMorgan Chase & Co. reissued a "neutral" rating on shares of Krispy Kreme in a research report on Wednesday, May 14th. Truist Financial lowered shares of Krispy Kreme from a "buy" rating to a "hold" rating in a research note on Thursday, May 8th. Finally, Citigroup decreased their target price on shares of Krispy Kreme from $4.75 to $3.60 and set a "neutral" rating for the company in a research note on Friday, May 9th. Four research analysts have rated the stock with a hold rating, four have assigned a buy rating and one has issued a strong buy rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $10.14.

Insiders Place Their Bets

In other 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 transaction, the insider owned 74,190,990 shares in the company, valued at approximately $320,505,076.80. This represents a 0.93% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this link. Corporate insiders own 3.00% of the company's stock.

Hedge Funds Weigh In On Krispy Kreme

Hedge funds have recently added to or reduced their stakes in the company. BNP Paribas Financial Markets purchased a new stake in Krispy Kreme during the 4th quarter valued at $152,305,000. Bamco Inc. NY grew its position in Krispy Kreme by 24.7% in the 4th quarter. Bamco Inc. NY now owns 13,069,717 shares of the company's stock worth $129,782,000 after purchasing an additional 2,588,398 shares during the period. Vanguard Group Inc. grew its position in Krispy Kreme by 2.7% in the 1st quarter. Vanguard Group Inc. now owns 8,867,100 shares of the company's stock worth $43,626,000 after purchasing an additional 233,234 shares during the period. Cooper Creek Partners Management LLC lifted its holdings in shares of Krispy Kreme by 43.0% during the 4th quarter. Cooper Creek Partners Management LLC now owns 7,264,760 shares of the company's stock valued at $72,139,000 after buying an additional 2,186,136 shares during the period. Finally, Dimensional Fund Advisors LP boosted its stake in shares of Krispy Kreme by 8.7% in the 4th quarter. Dimensional Fund Advisors LP now owns 4,191,111 shares of the company's stock worth $41,614,000 after buying an additional 333,764 shares during the last quarter. 81.72% of the stock is currently owned by hedge funds and other institutional investors.

Krispy Kreme Stock Up 1.3%

The company has a fifty day moving average of $3.00 and a 200 day moving average of $5.45. The company has a quick ratio of 0.28, a current ratio of 0.35 and a debt-to-equity ratio of 0.83. The company has a market cap of $532.46 million, a P/E ratio of -24.00 and a beta of 1.29.

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

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.