Krispy Kreme (NASDAQ:DNUT) Stock Price Down 4% - Time to Sell?

Key Points

• Krispy Kreme shares fell about 4% to roughly $3.26 on Wednesday, trading as low as $3.19 with volume (~702,148 shares) down about 71% versus the average daily volume.
• Analyst sentiment is cautious — the consensus is an average rating of "Reduce" with an average price target of $4.52 (2 Buys, 5 Holds, 3 Sells), and Morgan Stanley remains underweight with a $3 target.
• The company beat quarterly EPS estimates ($0.09 vs. $0.03) and revenue slightly, but still shows weak fundamentals: negative net margin (-33.87%), negative ROE, low liquidity (current ratio 0.38) and a debt-to-equity ratio of 1.40.

Krispy Kreme, Inc. (NASDAQ:DNUT - Get Free Report)'s stock price dropped 4% during trading on Wednesday . The stock traded as low as $3.19 and last traded at $3.2550. Approximately 702,148 shares were traded during mid-day trading, a decline of 71% from the average daily volume of 2,449,413 shares. The stock had previously closed at $3.39.

Analysts Set New Price Targets

Several brokerages have recently issued reports on DNUT. Wall Street Zen upgraded shares of Krispy Kreme from a "sell" rating to a "hold" rating in a report on Sunday, February 22nd. Weiss Ratings reaffirmed a "sell (d)" rating on shares of Krispy Kreme in a report on Monday, December 29th. Zacks Research upgraded Krispy Kreme from a "strong sell" rating to a "hold" rating in a research report on Monday, December 22nd. Finally, Morgan Stanley reissued an "underweight" rating and set a $3.00 price target on shares of Krispy Kreme in a research note on Tuesday, January 20th. Two analysts have rated the stock with a Buy rating, five have assigned a Hold rating and three have issued a Sell rating to the company. According to MarketBeat.com, Krispy Kreme currently has an average rating of "Reduce" and an average target price of $4.52.

Krispy Kreme Stock Performance

The firm has a market capitalization of $577.73 million, a P/E ratio of -1.10 and a beta of 1.27. The company has a 50-day moving average of $3.32 and a 200-day moving average of $3.68. The company has a current ratio of 0.38, a quick ratio of 0.32 and a debt-to-equity ratio of 1.40.

Krispy Kreme (NASDAQ:DNUT - Get Free Report) last released its quarterly earnings results on Thursday, February 26th. The company reported $0.09 EPS for the quarter, beating analysts' consensus estimates of $0.03 by $0.06. Krispy Kreme had a negative return on equity of 3.66% and a negative net margin of 33.87%.The firm had revenue of $392.37 million for the quarter, compared to analyst estimates of $386.72 million. During the same quarter in the previous year, the company posted $0.01 EPS. The business's revenue was down 2.9% on a year-over-year basis. On average, equities analysts anticipate that Krispy Kreme, Inc. will post 0.07 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the company. Federated Hermes Inc. boosted its stake in shares of Krispy Kreme by 42.4% in the 4th quarter. Federated Hermes Inc. now owns 3,565,152 shares of the company's stock valued at $14,332,000 after purchasing an additional 1,061,308 shares during the last quarter. Marshall Wace LLP bought a new stake in Krispy Kreme during the third quarter valued at $11,704,000. Balyasny Asset Management L.P. increased its stake in Krispy Kreme by 419.2% in the third quarter. Balyasny Asset Management L.P. now owns 2,795,546 shares of the company's stock valued at $10,819,000 after purchasing an additional 2,257,061 shares in the last quarter. Geode Capital Management LLC raised its position in Krispy Kreme by 7.4% in the fourth quarter. Geode Capital Management LLC now owns 2,231,100 shares of the company's stock worth $8,971,000 after acquiring an additional 153,645 shares during the period. Finally, Millennium Management LLC boosted its position in shares of Krispy Kreme by 522.1% in the first quarter. Millennium Management LLC now owns 2,093,416 shares of the company's stock valued at $10,300,000 after acquiring an additional 1,756,932 shares during the period. Institutional investors and hedge funds own 81.72% of the company's stock.

Krispy Kreme Company Profile

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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