Krispy Kreme (NASDAQ:DNUT) Trading Down 4.5% - Should You Sell?

Key Points

• Krispy Kreme's shares fell 4.5%, trading at $3.50, with a significant decline in trading volume compared to the average.
• Analyst ratings are mixed, with a consensus rating of "Hold" and a target price of $6.45, indicating uncertainty about the stock's direction.
• The company reported a loss of $0.15 EPS for the quarter, missing estimates and showing a 13.5% decrease in revenue year-over-year.

Shares of Krispy Kreme, Inc. (NASDAQ:DNUT - Get Free Report) were down 4.5% on Tuesday . The company traded as low as $3.49 and last traded at $3.50. Approximately 705,800 shares were traded during mid-day trading, a decline of 87% from the average daily volume of 5,294,434 shares. The stock had previously closed at $3.66.

Analyst Ratings Changes

A number of research analysts have weighed in on DNUT shares. BNP Paribas upgraded Krispy Kreme to a "hold" rating in a research note on Monday, July 21st. Weiss Ratings reiterated a "sell (e+)" rating on shares of Krispy Kreme in a research note on Saturday, September 27th. Morgan Stanley reduced their target price on Krispy Kreme from $3.00 to $2.50 and set an "overweight" rating for the company in a research note on Monday, July 14th. JPMorgan Chase & Co. reiterated an "underweight" rating on shares of Krispy Kreme in a research note on Wednesday, August 27th. Finally, Bank of America reduced their target price on Krispy Kreme from $7.00 to $6.00 and set a "buy" rating for the company in a research note on Friday, July 18th. Three investment analysts have rated the stock with a Buy rating, five have issued a Hold rating and three have assigned a Sell rating to the company's stock. Based on data from MarketBeat, the company presently has a consensus rating of "Hold" and an average target price of $6.45.

Krispy Kreme Price Performance

The business has a fifty day moving average price of $3.45 and a 200 day moving average price of $3.56. The company has a debt-to-equity ratio of 1.24, a quick ratio of 0.26 and a current ratio of 0.34. The company has a market cap of $589.78 million, a price-to-earnings ratio of -1.30 and a beta of 1.34.

Krispy Kreme (NASDAQ:DNUT - Get Free Report) last issued its 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 firm 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 company earned $0.05 EPS. Krispy Kreme's revenue for the quarter was down 13.5% on a year-over-year basis. As a group, research analysts anticipate that Krispy Kreme, Inc. will post 0.07 earnings per share for the current year.

Institutional Investors Weigh In On Krispy Kreme

Institutional investors have recently made changes to their positions in the stock. GAMMA Investing LLC grew its position in shares of Krispy Kreme by 1,440.9% in the 1st quarter. GAMMA Investing LLC now owns 9,338 shares of the company's stock valued at $46,000 after buying an additional 8,732 shares during the last quarter. Capstone Financial Advisors Inc. bought a new stake in shares of Krispy Kreme during the 2nd quarter valued at about $29,000. Vanguard Personalized Indexing Management LLC bought a new stake in shares of Krispy Kreme during the 2nd quarter valued at about $30,000. Malaga Cove Capital LLC bought a new stake in shares of Krispy Kreme during the 1st quarter valued at about $51,000. Finally, R Squared Ltd bought a new stake in shares of Krispy Kreme during the 2nd quarter valued at about $31,000. Institutional investors own 81.72% of the company's stock.

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.

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