Krispy Kreme (NASDAQ:DNUT) Stock Price Up 8.3% - Still a Buy?

Key Points

• Krispy Kreme's stock price increased by 8.3% on Monday, closing at $3.73 after trading as high as $3.71, despite a significant drop in trading volume by 56%.
• A variety of analysts have made adjustments to their ratings for Krispy Kreme, with some downgrading the stock and others setting lower target prices, resulting in a current average rating of "Hold" and a price target of $7.58.
• Krispy Kreme reported a quarterly revenue of $375.18 million, which fell short of expectations and was down 15.2% compared to the previous year, with earnings per share also hitting the consensus estimate of ($0.05).

Krispy Kreme, Inc. (NASDAQ:DNUT - Get Free Report) shares were up 8.3% during mid-day trading on Monday . The stock traded as high as $3.71 and last traded at $3.73. Approximately 2,420,211 shares changed hands during mid-day trading, a decline of 56% from the average daily volume of 5,544,629 shares. The stock had previously closed at $3.44.

Analysts Set New Price Targets

A number of analysts recently issued reports on DNUT shares. Citigroup lowered their target price on Krispy Kreme from $4.75 to $3.60 and set a "neutral" rating for the company in a research note on Friday, May 9th. BNP Paribas Exane lowered shares of Krispy Kreme from an "outperform" rating to a "neutral" rating and set a $3.50 price objective on the stock. in a report on Monday, July 21st. JPMorgan Chase & Co. reaffirmed a "neutral" rating on shares of Krispy Kreme in a research note on Wednesday, May 14th. BNP Paribas raised Krispy Kreme to a "hold" rating in a research note on Monday, July 21st. Finally, Truist Financial lowered Krispy Kreme from a "buy" rating to a "hold" rating in a report on Thursday, May 8th. Six analysts have rated the stock with a hold rating and three have given a buy rating to the company's stock. According to data from MarketBeat, the company presently has an average rating of "Hold" and an average price target of $7.58.

Krispy Kreme Price Performance

The company has a debt-to-equity ratio of 0.83, a quick ratio of 0.28 and a current ratio of 0.35. The company has a fifty day moving average price of $3.19 and a two-hundred day moving average price of $4.82. The company has a market cap of $529.89 million, a P/E ratio of -23.88 and a beta of 1.32.

Krispy Kreme (NASDAQ:DNUT - Get Free Report) last released its quarterly earnings data on Thursday, August 7th. The company reported ($0.15) earnings per share for the quarter, missing the consensus estimate of ($0.05) by ($0.10). The firm had revenue of $379.77 million for the quarter, compared to analyst estimates of $382.25 million. Krispy Kreme had a negative return on equity of 2.13% and a negative net margin of 1.36%. The firm's revenue for the quarter was down 13.5% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.05 earnings per share. On average, sell-side analysts anticipate that Krispy Kreme, Inc. will post 0.07 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Krispy Kreme

Several large investors have recently modified their holdings of DNUT. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its stake in Krispy Kreme by 3.6% in the 4th 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 during the last quarter. Spartan Fund Management Inc. boosted its holdings in shares of Krispy Kreme by 150.0% during the fourth quarter. Spartan Fund Management Inc. now owns 5,000 shares of the company's stock worth $50,000 after acquiring an additional 3,000 shares during the period. IFP Advisors Inc grew its position in shares of Krispy Kreme by 34.5% in the second quarter. IFP Advisors Inc now owns 12,378 shares of the company's stock valued at $36,000 after purchasing an additional 3,178 shares during the last quarter. Rhumbline Advisers increased its stake in shares of Krispy Kreme by 3.2% during 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. Finally, Quinn Opportunity Partners LLC lifted its holdings in Krispy Kreme by 10.9% during the 4th quarter. Quinn Opportunity Partners LLC now owns 50,754 shares of the company's stock worth $504,000 after purchasing an additional 5,000 shares during the last quarter. 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.