Krispy Kreme (NASDAQ:DNUT) Shares Gap Up - Here's Why

Shares of Krispy Kreme, Inc. (NASDAQ:DNUT - Get Free Report) gapped up before the market opened on Wednesday . The stock had previously closed at $4.13, but opened at $5.72. Krispy Kreme shares last traded at $4.97, with a volume of 51,351,581 shares changing hands.

Wall Street Analysts Forecast Growth

Several brokerages have commented on DNUT. BNP Paribas upgraded Krispy Kreme to a "hold" rating in a report on Monday. Morgan Stanley cut their price objective on Krispy Kreme from $3.00 to $2.50 and set an "overweight" rating for the company in a report on Monday, July 14th. Citigroup cut their price objective on Krispy Kreme from $4.75 to $3.60 and set a "neutral" rating for the company in a report on Friday, May 9th. Bank of America lowered their target price on Krispy Kreme from $7.00 to $6.00 and set a "buy" rating for the company in a research note on Friday, July 18th. Finally, Truist Financial lowered Krispy Kreme from a "buy" rating to a "hold" rating in a research report on Thursday, May 8th. Six research analysts have rated the stock with a hold rating and three have issued a buy rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus price target of $7.58.

Krispy Kreme Price Performance

The company has a current ratio of 0.35, a quick ratio of 0.28 and a debt-to-equity ratio of 0.83. The firm has a fifty day moving average of $3.05 and a two-hundred day moving average of $5.18. The company has a market capitalization of $715.92 million, a PE ratio of -32.19 and a beta of 1.29.

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

Hedge Funds Weigh In On Krispy Kreme

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in DNUT. D. E. Shaw & Co. Inc. boosted its holdings in Krispy Kreme by 138.8% in the 4th quarter. D. E. Shaw & Co. Inc. now owns 165,400 shares of the company's stock worth $1,642,000 after buying an additional 96,126 shares during the last quarter. SG Americas Securities LLC raised its position in shares of Krispy Kreme by 275.1% during the 1st quarter. SG Americas Securities LLC now owns 314,630 shares of the company's stock valued at $1,548,000 after buying an additional 230,761 shares during the period. Sei Investments Co. raised its position in shares of Krispy Kreme by 491.7% during the 4th quarter. Sei Investments Co. now owns 121,297 shares of the company's stock valued at $1,204,000 after buying an additional 100,796 shares during the period. Bamco Inc. NY raised its position in Krispy Kreme by 24.7% in the fourth quarter. Bamco Inc. NY now owns 13,069,717 shares of the company's stock valued at $129,782,000 after purchasing an additional 2,588,398 shares during the period. Finally, Deutsche Bank AG raised its position in Krispy Kreme by 46.9% in the fourth quarter. Deutsche Bank AG now owns 76,707 shares of the company's stock valued at $762,000 after purchasing an additional 24,481 shares during the period. 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.