Krispy Kreme (NASDAQ:DNUT) Shares Gap Up After Insider Buying Activity

Key Points

• Krispy Kreme shares gapped up Friday, opening at $3.55 after closing at $3.27, following a wave of insider buying activity.
• Director Bernardo Hees made multiple open-market purchases this week, including 150,000, 170,596, and 235,875 shares, signaling confidence in the company’s outlook.
• Despite the stock pop, Krispy Kreme still faces weak fundamentals, including a recent earnings miss, negative margins, and year-over-year revenue decline, while analysts currently rate the stock a consensus Hold.

Shares of Krispy Kreme, Inc. (NASDAQ:DNUT - Get Free Report) gapped up before the market opened on Friday following insider buying activity. The stock had previously closed at $3.27, but opened at $3.55. Krispy Kreme shares last traded at $3.5350, with a volume of 1,096,328 shares changing hands.

Specifically, Director Bernardo Hees acquired 150,000 shares of the business's stock in a transaction on Thursday, June 4th. The shares were bought at an average price of $3.29 per share, with a total value of $493,500.00. Following the completion of the acquisition, the director owned 1,549,633 shares in the company, valued at $5,098,292.57. This trade represents a 10.72% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Bernardo Hees acquired 170,596 shares of Krispy Kreme stock in a transaction dated Wednesday, June 3rd. The shares were bought at an average price of $3.35 per share, with a total value of $571,496.60. Following the transaction, the director directly owned 1,399,633 shares in the company, valued at approximately $4,688,770.55. The trade was a 13.88% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. In related news, Director Bernardo Hees bought 235,875 shares of the stock in a transaction dated Tuesday, June 2nd. The stock was acquired at an average price of $3.39 per share, for a total transaction of $799,616.25. Following the acquisition, the director owned 1,229,037 shares in the company, valued at approximately $4,166,435.43. This represents a 23.75% increase in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website.

Analysts Set New Price Targets

DNUT has been the topic of several research analyst reports. Zacks Research lowered shares of Krispy Kreme from a "strong-buy" rating to a "hold" rating in a research note on Friday, May 15th. Weiss Ratings reaffirmed a "sell (d)" rating on shares of Krispy Kreme in a report on Friday, March 27th. Capital One Financial upgraded Krispy Kreme from an "equal weight" rating to an "overweight" rating and set a $6.00 target price on the stock in a research report on Thursday, March 26th. Finally, Wall Street Zen raised Krispy Kreme from a "sell" rating to a "hold" rating in a research report on Sunday, May 17th. Three investment analysts have rated the stock with a Buy rating, two have given a Hold rating and three have assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the company has a consensus rating of "Hold" and a consensus price target of $4.63.

Krispy Kreme News Roundup

Here are the key news stories impacting Krispy Kreme this week:

• Positive Sentiment: Director Bernardo Hees made multiple open-market purchases this week, including 150,000 shares at $3.29, 170,596 shares at $3.35, 235,875 shares at $3.39, and 73,640 shares at $3.44. Repeated insider buying can signal confidence in Krispy Kreme’s outlook. SEC Form 4 filing
• Positive Sentiment: National Doughnut Day coverage highlights Krispy Kreme freebies and giveaways across the U.S. and U.K., which could drive higher traffic, brand visibility, and near-term sales for the company. Article reference
• Neutral Sentiment: The National Doughnut Day publicity is broad and includes competitors such as Dunkin’ and 7-Eleven, so the sales boost for Krispy Kreme may be temporary rather than a lasting demand driver. Article reference
• Negative Sentiment: Krispy Kreme still faces weak fundamentals, including a recent earnings miss, negative margins, and revenue that declined year over year, which may limit enthusiasm for the stock despite the promotional headlines. Stock information

Krispy Kreme Trading Up 8.4%

The company has a debt-to-equity ratio of 1.31, a quick ratio of 0.36 and a current ratio of 0.42. The stock has a market capitalization of $611.16 million, a PE ratio of -1.18 and a beta of 1.27. The business's 50-day moving average is $3.48 and its two-hundred day moving average is $3.64.

Krispy Kreme (NASDAQ:DNUT - Get Free Report) last announced its quarterly earnings data on Thursday, May 7th. The company reported ($0.05) EPS for the quarter, missing analysts' consensus estimates of ($0.03) by ($0.02). The firm had revenue of $367.03 million for the quarter, compared to analysts' expectations of $359.42 million. Krispy Kreme had a negative return on equity of 4.34% and a negative net margin of 33.36%.The firm's quarterly revenue was down 2.2% compared to the same quarter last year. During the same quarter in the previous year, the company posted ($0.05) EPS. As a group, equities research analysts anticipate that Krispy Kreme, Inc. will post -0.07 earnings per share for the current year.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in the company. Prudential Financial Inc. purchased a new stake in Krispy Kreme in the 2nd quarter valued at approximately $32,000. Russell Investments Group Ltd. raised its stake in shares of Krispy Kreme by 1,229.5% during the 3rd quarter. Russell Investments Group Ltd. now owns 8,469 shares of the company's stock worth $33,000 after buying an additional 7,832 shares in the last quarter. Captrust Financial Advisors acquired a new stake in shares of Krispy Kreme in the 2nd quarter valued at approximately $34,000. Apollon Wealth Management LLC purchased a new stake in shares of Krispy Kreme in the first quarter valued at approximately $35,000. Finally, Raymond James Financial Inc. purchased a new stake in shares of Krispy Kreme in the second quarter valued at approximately $37,000. 81.72% of the stock is owned by hedge funds and other institutional investors.

About Krispy Kreme

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.

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