Krispy Kreme (NASDAQ:DNUT) Shares Up 15.5% - Here's Why

Key Points

• Krispy Kreme's stock price surged 15.5% during trading on Tuesday, reaching a high of $3.83, with 7.1 million shares traded, reflecting a 36% increase from its average volume.
• Research analysts have mixed ratings on the stock, with three Buy ratings, five Hold ratings, and three Sell ratings, and an average price target of $6.45.
• The company reported a loss of $0.15 EPS for the last quarter, missing the consensus estimate and experiencing a 13.5% decrease in revenue compared to the same period last year.

Krispy Kreme, Inc. (NASDAQ:DNUT - Get Free Report)'s stock price rose 15.5% during trading on Tuesday . The company traded as high as $3.83 and last traded at $3.77. Approximately 7,119,842 shares were traded during mid-day trading, an increase of 36% from the average daily volume of 5,227,472 shares. The stock had previously closed at $3.26.

Analyst Upgrades and Downgrades

Several research analysts have recently commented on DNUT shares. Weiss Ratings restated a "sell (e+)" rating on shares of Krispy Kreme in a research report on Wednesday, October 8th. Zacks Research downgraded Krispy Kreme from a "hold" rating to a "strong sell" rating in a research report on Monday, August 25th. Morgan Stanley reduced their price target on shares of Krispy Kreme from $3.00 to $2.50 and set an "overweight" rating on the stock in a research report on Monday, July 14th. JPMorgan Chase & Co. restated an "underweight" rating on shares of Krispy Kreme in a report on Wednesday, August 27th. Finally, BNP Paribas upgraded shares of Krispy Kreme to a "hold" rating in a report on Monday, July 21st. Three analysts have rated the stock with a Buy rating, five have issued a Hold rating and three have assigned a Sell rating to the company. According to data from MarketBeat, the company has an average rating of "Hold" and an average price target of $6.45.

Krispy Kreme Price Performance

The firm has a market capitalization of $630.87 million, a price-to-earnings ratio of -1.43 and a beta of 1.34. The stock's fifty day moving average price is $3.43 and its two-hundred day moving average price is $3.44. The company has a current ratio of 0.34, a quick ratio of 0.26 and a debt-to-equity ratio of 1.24.

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

Institutional Trading of Krispy Kreme

Institutional investors have recently modified their holdings of the stock. Capstone Financial Advisors Inc. purchased a new position in shares of Krispy Kreme in the 2nd quarter valued at $29,000. Vanguard Personalized Indexing Management LLC purchased a new position in shares of Krispy Kreme during the second quarter worth about $30,000. R Squared Ltd acquired a new stake in shares of Krispy Kreme during the second quarter worth about $31,000. Prudential Financial Inc. acquired a new stake in shares of Krispy Kreme during the second quarter worth about $32,000. Finally, Captrust Financial Advisors purchased a new stake in shares of Krispy Kreme in the 2nd quarter valued at about $34,000. Hedge funds and other institutional investors own 81.72% of the company's stock.

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.

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