Krispy Kreme (NASDAQ:DNUT) Trading 8.3% Higher - Here's What Happened

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) traded up 8.3% on Monday . The company traded as high as $3.71 and last traded at $3.73. 2,420,211 shares changed hands during trading, a decline of 56% from the average session volume of 5,544,629 shares. The stock had previously closed at $3.44.

Analyst Upgrades and Downgrades

A number of equities analysts recently weighed in on the stock. Truist Financial downgraded shares of Krispy Kreme from a "buy" rating to a "hold" rating in a research note on Thursday, May 8th. Bank of America lowered their target price on shares of Krispy Kreme from $7.00 to $6.00 and set a "buy" rating for the company in a research note on Friday, July 18th. Morgan Stanley lowered their target price on shares of Krispy Kreme from $3.00 to $2.50 and set an "overweight" rating for the company in a research note on Monday, July 14th. BNP Paribas Exane downgraded shares of Krispy Kreme from an "outperform" rating to a "neutral" rating and set a $3.50 target price for the company. in a research note on Monday, July 21st. Finally, BNP Paribas raised Krispy Kreme to a "hold" rating in a research report on Monday, July 21st. Six equities research analysts have rated the stock with a hold rating and three have assigned a buy rating to the company. Based on data from MarketBeat, the stock presently has an average rating of "Hold" and a consensus price target of $7.58.

Krispy Kreme Trading Up 6.1%

The company has a quick ratio of 0.28, a current ratio of 0.35 and a debt-to-equity ratio of 0.83. The firm's 50-day moving average price is $3.15 and its 200 day moving average price is $4.91. The company has a market capitalization of $622.91 million, a P/E ratio of -28.08 and a beta of 1.32.

Krispy Kreme (NASDAQ:DNUT - Get Free Report) last released its quarterly earnings results on Thursday, May 8th. The company reported ($0.05) earnings per share for the quarter, hitting the consensus estimate of ($0.05). Krispy Kreme had a negative net margin of 1.36% and a negative return on equity of 2.13%. The business had revenue of $375.18 million for the quarter, compared to analysts' expectations of $383.97 million. During the same period in the previous year, the company earned $0.07 earnings per share. The firm's revenue for the quarter was down 15.2% compared to the same quarter last year. As a group, equities research analysts predict that Krispy Kreme, Inc. will post 0.07 earnings per share for the current year.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Sei Investments Co. boosted its stake in Krispy Kreme by 491.7% in the fourth quarter. Sei Investments Co. now owns 121,297 shares of the company's stock valued at $1,204,000 after acquiring an additional 100,796 shares during the last quarter. KLP Kapitalforvaltning AS purchased a new position in Krispy Kreme in the fourth quarter valued at about $193,000. Geode Capital Management LLC boosted its stake in Krispy Kreme by 0.5% in the fourth quarter. Geode Capital Management LLC now owns 2,110,288 shares of the company's stock valued at $20,960,000 after acquiring an additional 10,643 shares during the last quarter. Wells Fargo & Company MN boosted its stake in Krispy Kreme by 100.9% in the fourth quarter. Wells Fargo & Company MN now owns 229,352 shares of the company's stock valued at $2,277,000 after acquiring an additional 115,177 shares during the last quarter. Finally, Quinn Opportunity Partners LLC boosted its stake in Krispy Kreme by 10.9% in the fourth quarter. Quinn Opportunity Partners LLC now owns 50,754 shares of the company's stock valued at $504,000 after acquiring an additional 5,000 shares during the last quarter. 81.72% of the stock is currently owned by hedge funds and other institutional investors.

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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