Krispy Kreme (NASDAQ:DNUT) Stock Price Up 5.3% - Still a Buy?

Key Points

• Krispy Kreme's stock price increased by 5.3% to $3.29, but trading volume was significantly lower than average at 462,275 shares.
• Analysts have provided mixed ratings, with Zacks Research downgrading the stock to "strong sell" while Bank of America maintained a "buy" rating, reflecting overall uncertainty.
• The company's recent earnings report showed a loss of $0.15 EPS, missing estimates, and revenue declined by 13.5% year-over-year, indicating potential financial struggles.

Krispy Kreme, Inc. (NASDAQ:DNUT - Get Free Report) was up 5.3% during mid-day trading on Wednesday . The stock traded as high as $3.27 and last traded at $3.29. Approximately 462,275 shares were traded during mid-day trading, a decline of 91% from the average daily volume of 5,236,560 shares. The stock had previously closed at $3.12.

Analyst Ratings Changes

Several analysts recently issued reports on DNUT shares. BNP Paribas Exane downgraded Krispy Kreme from an "outperform" rating to a "neutral" rating and set a $3.50 price target on the stock. in a report on Monday, July 21st. Morgan Stanley cut their price target on Krispy Kreme from $3.00 to $2.50 and set an "overweight" rating on the stock in a report on Monday, July 14th. BNP Paribas raised Krispy Kreme to a "hold" rating in a research note 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 on the stock in a research note on Friday, July 18th. Finally, JPMorgan Chase & Co. reaffirmed an "underweight" rating on shares of Krispy Kreme in a research note on Wednesday, August 27th. Three research analysts have rated the stock with a Buy rating, four have given a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, Krispy Kreme has an average rating of "Hold" and a consensus target price of $6.80.

Krispy Kreme Stock Performance

The stock has a market capitalization of $585.50 million, a P/E ratio of -1.29 and a beta of 1.32. The firm has a 50-day moving average of $3.47 and a 200 day moving average of $3.73. The company has a quick ratio of 0.26, a current ratio of 0.34 and a debt-to-equity ratio of 1.24.

Krispy Kreme (NASDAQ:DNUT - Get Free Report) last issued 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). Krispy Kreme had a negative return on equity of 5.55% and a negative net margin of 29.33%.The firm had revenue of $379.77 million during the quarter, compared to the consensus estimate of $382.25 million. During the same period last year, the business earned $0.05 earnings per share. The firm's revenue for the quarter was down 13.5% compared to the same quarter last year. Research analysts anticipate that Krispy Kreme, Inc. will post 0.07 EPS for the current fiscal year.

Institutional Trading of Krispy Kreme

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its stake in shares of Krispy Kreme by 3.6% in the fourth quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 48,683 shares of the company's stock valued at $483,000 after buying an additional 1,707 shares in the last quarter. IFP Advisors Inc increased its position in Krispy Kreme by 34.5% in the second quarter. IFP Advisors Inc now owns 12,378 shares of the company's stock worth $36,000 after purchasing an additional 3,178 shares during the period. Rhumbline Advisers increased its position in Krispy Kreme by 3.2% in the first quarter. Rhumbline Advisers now owns 122,856 shares of the company's stock worth $604,000 after purchasing an additional 3,773 shares during the period. Gabelli Funds LLC increased its position in Krispy Kreme by 9.1% in the first quarter. Gabelli Funds LLC now owns 72,000 shares of the company's stock worth $354,000 after purchasing an additional 6,000 shares during the period. Finally, Vident Advisory LLC increased its position in Krispy Kreme by 45.1% in the first quarter. Vident Advisory LLC now owns 20,720 shares of the company's stock worth $102,000 after purchasing an additional 6,444 shares during the period. 81.72% of the stock is currently owned by institutional investors and hedge funds.

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.