JPMorgan Chase & Co. Reaffirms Underweight Rating for Krispy Kreme (NASDAQ:DNUT)

Key Points

• JPMorgan Chase & Co. has reiterated its underweight rating on Krispy Kreme (NASDAQ:DNUT), while other analysts have varied opinions, ranging from strong sell to buy.
• Krispy Kreme reported a disappointing quarterly earnings result with an EPS of -$0.15, missing consensus estimates by $0.10, and experienced a 13.5% year-over-year decline in revenue.
• The stock has a market cap of $638.58 million and was trading at $3.73, significantly lower than its 52-week high of $12.68.

Krispy Kreme (NASDAQ:DNUT - Get Free Report)'s stock had its "underweight" rating reiterated by analysts at JPMorgan Chase & Co. in a research note issued to investors on Wednesday, Marketbeat.com reports.

DNUT has been the topic of several other reports. Zacks Research downgraded Krispy Kreme from a "hold" rating to a "strong sell" rating in a report on Monday. Bank of America dropped their price objective on Krispy Kreme from $7.00 to $6.00 and set a "buy" rating on the stock in a report on Friday, July 18th. BNP Paribas upgraded Krispy Kreme to a "hold" rating in a research report on Monday, July 21st. Truist Financial lowered Krispy Kreme from a "buy" rating to a "hold" rating in a research report on Thursday, May 8th. Finally, Citigroup decreased their target price on Krispy Kreme from $4.75 to $3.60 and set a "neutral" rating for the company in a research report on Friday, May 9th. Three investment analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of "Hold" and an average target price of $6.80.

Krispy Kreme Stock Up 1.1%

DNUT opened at $3.73 on Wednesday. The company has a quick ratio of 0.26, a current ratio of 0.34 and a debt-to-equity ratio of 1.24. The firm has a market cap of $638.58 million, a P/E ratio of -1.41 and a beta of 1.32. Krispy Kreme has a 52 week low of $2.50 and a 52 week high of $12.68. The business's fifty day simple moving average is $3.35 and its 200 day simple moving average is $4.30.

Krispy Kreme (NASDAQ:DNUT - Get Free Report) last issued its quarterly earnings results on Thursday, August 7th. The company reported ($0.15) earnings per share (EPS) for the quarter, missing analysts' consensus estimates 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 business had revenue of $379.77 million during the quarter, compared to analyst estimates of $382.25 million. During the same period in the previous year, the business posted $0.05 earnings per share. The firm's quarterly revenue was down 13.5% on a year-over-year basis. As a group, equities research analysts anticipate that Krispy Kreme will post 0.07 EPS for the current fiscal year.

Institutional Investors Weigh In On Krispy Kreme

A number of institutional investors and hedge funds have recently modified their holdings of the stock. Captrust Financial Advisors purchased a new position in shares of Krispy Kreme during the second quarter valued at $34,000. Two Sigma Securities LLC purchased a new position in shares of Krispy Kreme during the second quarter valued at $344,000. Oxford Asset Management LLP purchased a new position in shares of Krispy Kreme during the second quarter valued at $42,000. Engineers Gate Manager LP purchased a new position in shares of Krispy Kreme during the second quarter valued at $183,000. Finally, Balyasny Asset Management L.P. purchased a new position in Krispy Kreme in the second quarter valued at about $1,567,000. 81.72% of the stock is 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.