Krispy Kreme (NASDAQ:DNUT) Trading Down 5% - Here's What Happened

Key Points

• Krispy Kreme shares fell by 5% on Wednesday, with trading volumes significantly down by 78% compared to the average daily volume.
• Analysts have mixed ratings on Krispy Kreme, with Zacks Research lowering it to a "strong sell" while Bank of America maintains a "buy" rating, resulting in an average consensus target price of $6.80.
• The company reported a revenue decline of 13.5% year-over-year and posted a negative earnings per share of (-$0.15), missing analysts' estimates by 10 cents.

Shares of Krispy Kreme, Inc. (NASDAQ:DNUT - Get Free Report) were down 5% on Wednesday . The stock traded as low as $3.71 and last traded at $3.68. Approximately 1,181,898 shares changed hands during mid-day trading, a decline of 78% from the average daily volume of 5,312,726 shares. The stock had previously closed at $3.87.

Wall Street Analysts Forecast Growth

DNUT has been the subject of several analyst reports. Zacks Research lowered shares of Krispy Kreme from a "hold" rating to a "strong sell" rating in a report on Monday, August 25th. Bank of America reduced their price objective 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. JPMorgan Chase & Co. reaffirmed an "underweight" rating on shares of Krispy Kreme in a research report on Wednesday, August 27th. BNP Paribas raised shares of Krispy Kreme to a "hold" rating in a research report on Monday, July 21st. Finally, BNP Paribas Exane cut Krispy Kreme from an "outperform" rating to a "neutral" rating and set a $3.50 target price on the stock. in a research note on Monday, July 21st. Three research analysts have rated the stock with a Buy rating, four have assigned a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus target price of $6.80.

Krispy Kreme Price Performance

The firm's fifty day moving average price is $3.49 and its 200-day moving average price is $3.62. The stock has a market cap of $658.26 million, a P/E ratio of -1.45 and a beta of 1.32. 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 posted its earnings results on Thursday, August 7th. The company reported ($0.15) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.05) by ($0.10). The business had revenue of $379.77 million for the quarter, compared to analysts' expectations of $382.25 million. Krispy Kreme had a negative net margin of 29.33% and a negative return on equity of 5.55%. Krispy Kreme's quarterly revenue was down 13.5% on a year-over-year basis. During the same period last year, the firm posted $0.05 earnings per share. Analysts forecast that Krispy Kreme, Inc. will post 0.07 earnings per share for the current year.

Institutional Trading of Krispy Kreme

A number of hedge funds and other institutional investors have recently modified their holdings of DNUT. GAMMA Investing LLC increased its stake in shares of Krispy Kreme by 1,440.9% during the first quarter. GAMMA Investing LLC now owns 9,338 shares of the company's stock valued at $46,000 after purchasing an additional 8,732 shares in the last quarter. Capstone Financial Advisors Inc. bought a new position in Krispy Kreme during the 2nd quarter valued at approximately $29,000. Vanguard Personalized Indexing Management LLC bought a new position in Krispy Kreme during the 2nd quarter valued at approximately $30,000. Malaga Cove Capital LLC purchased a new position in Krispy Kreme during the first quarter valued at $51,000. Finally, R Squared Ltd bought a new stake in Krispy Kreme in the second quarter worth $31,000. 81.72% of the stock is 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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