Krispy Kreme (NASDAQ:DNUT) Shares Gap Up - What's Next?

Key Points

• Krispy Kreme shares gapped up from a previous close of $3.71 to open at $4.66, with the stock last trading at $4.78 and a trading volume of 76,710,084 shares.
• Analysts have mixed views on the company, with Morgan Stanley lowering their price target to $2.50 while Bank of America reduced theirs to $6.00, leading to an overall consensus rating of "Hold" with an average price target of $6.45.
• Krispy Kreme reported a loss, with earnings of ($0.15) per share, below the expected ($0.05), and a revenue decrease of 13.5% year-over-year, indicating ongoing financial challenges.

Krispy Kreme, Inc. (NASDAQ:DNUT - Get Free Report) shares gapped up prior to trading on Wednesday . The stock had previously closed at $3.71, but opened at $4.66. Krispy Kreme shares last traded at $4.78, with a volume of 76,710,084 shares traded.

Analyst Ratings Changes

A number of analysts have commented on DNUT shares. Morgan Stanley reduced their price target on Krispy Kreme from $3.00 to $2.50 and set an "overweight" rating for the company in a research report on Monday, July 14th. BNP Paribas upgraded Krispy Kreme to a "hold" rating in a research report on Monday, July 21st. Bank of America cut their target price on Krispy Kreme from $7.00 to $6.00 and set a "buy" rating for the company in a research report on Friday, July 18th. Zacks Research cut Krispy Kreme from a "hold" rating to a "strong sell" rating in a research report on Monday, August 25th. Finally, Capital One Financial cut their target price on Krispy Kreme from $6.00 to $4.00 and set an "equal weight" rating for the company in a research report on Thursday, October 2nd. Three research analysts have rated the stock with a Buy rating, five have issued a Hold rating and three have issued a Sell rating to the company. According to MarketBeat, the stock has a consensus rating of "Hold" and an average price target of $6.45.

Krispy Kreme Trading Up 9.4%

The stock has a market cap of $694.56 million, a PE ratio of -1.54 and a beta of 1.34. The company has a debt-to-equity ratio of 1.24, a quick ratio of 0.26 and a current ratio of 0.34. The stock has a fifty day moving average price of $3.43 and a 200 day moving average price of $3.44.

Krispy Kreme (NASDAQ:DNUT - Get Free Report) last announced its earnings results on Thursday, August 7th. The company reported ($0.15) EPS for the quarter, missing analysts' consensus estimates of ($0.05) by ($0.10). The company had revenue of $379.77 million during the quarter, compared to analysts' expectations of $382.25 million. Krispy Kreme had a negative return on equity of 5.55% and a negative net margin of 29.33%.Krispy Kreme's revenue for the quarter was down 13.5% compared to the same quarter last year. During the same quarter last year, the firm posted $0.05 EPS. Equities analysts expect that Krispy Kreme, Inc. will post 0.07 EPS for the current year.

Institutional Investors Weigh In On Krispy Kreme

Institutional investors and hedge funds have recently modified their holdings of the business. GAMMA Investing LLC lifted its stake in shares of Krispy Kreme by 1,440.9% during the 1st quarter. GAMMA Investing LLC now owns 9,338 shares of the company's stock worth $46,000 after acquiring an additional 8,732 shares during the last quarter. Capstone Financial Advisors Inc. bought a new stake in shares of Krispy Kreme during the 2nd quarter worth approximately $29,000. Vanguard Personalized Indexing Management LLC bought a new stake in shares of Krispy Kreme during the 2nd quarter worth approximately $30,000. Malaga Cove Capital LLC bought a new stake in shares of Krispy Kreme during the 1st quarter worth approximately $51,000. Finally, R Squared Ltd bought a new stake in shares of Krispy Kreme during the 2nd quarter worth approximately $31,000. 81.72% of the stock is owned by institutional investors.

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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