Krispy Kreme Sees Unusually Large Options Volume (NASDAQ:DNUT)

Key Points

• Krispy Kreme saw an unusually large increase in options trading with 75,075 call options acquired, marking a 628% rise compared to the average volume of 10,313 call options.
• Institutional investors hold 81.72% of Krispy Kreme's stock, with several funds, including Capstone Financial Advisors and Vanguard Personalized Indexing Management, acquiring new stakes during the second quarter.
• Analyst ratings for Krispy Kreme have been mixed, with Capital One Financial lowering its target price from $6.00 to $4.00 and a consensus rating of "Hold" with an average price target of $6.45.

Krispy Kreme, Inc. (NASDAQ:DNUT - Get Free Report) saw some unusual options trading on Wednesday. Stock traders acquired 75,075 call options on the company. This is an increase of approximately 628% compared to the average volume of 10,313 call options.

Institutional Trading of Krispy Kreme

Hedge funds and other institutional investors have recently modified their holdings of the stock. Capstone Financial Advisors Inc. bought a new stake in shares of Krispy Kreme during the 2nd quarter worth about $29,000. Vanguard Personalized Indexing Management LLC bought a new stake in shares of Krispy Kreme during the 2nd quarter worth approximately $30,000. R Squared Ltd bought a new stake in shares of Krispy Kreme during the 2nd quarter worth approximately $31,000. Prudential Financial Inc. acquired a new position in Krispy Kreme during the 2nd quarter worth approximately $32,000. Finally, Captrust Financial Advisors acquired a new position in Krispy Kreme during the 2nd quarter worth approximately $34,000. Institutional investors own 81.72% of the company's stock.

Analyst Ratings Changes

DNUT has been the topic of several recent analyst reports. Capital One Financial dropped their target price on Krispy Kreme from $6.00 to $4.00 and set an "equal weight" rating on the stock in a report on Thursday, October 2nd. Weiss Ratings reissued a "sell (e+)" rating on shares of Krispy Kreme in a research note on Wednesday, October 8th. JPMorgan Chase & Co. restated an "underweight" rating on shares of Krispy Kreme in a report on Wednesday, August 27th. Bank of America lowered their target price on shares of Krispy Kreme from $7.00 to $6.00 and set a "buy" rating on the stock in a research report on Friday, July 18th. Finally, Zacks Research lowered shares of Krispy Kreme from a "hold" rating to a "strong sell" rating in a research report on Monday, August 25th. Three research analysts have rated the stock with a Buy rating, five have issued a Hold rating and three have given a Sell rating to the company. According to MarketBeat, the company presently has a consensus rating of "Hold" and an average price target of $6.45.

Krispy Kreme Stock Up 30.7%

DNUT stock traded up $1.14 during midday trading on Wednesday, hitting $4.85. The company's stock had a trading volume of 76,710,084 shares, compared to its average volume of 5,550,904. The company has a debt-to-equity ratio of 1.24, a current ratio of 0.34 and a quick ratio of 0.26. Krispy Kreme has a twelve month low of $2.50 and a twelve month high of $12.68. The company's fifty day moving average price is $3.43 and its 200 day moving average price is $3.44. The stock has a market capitalization of $830.15 million, a P/E ratio of -1.83 and a beta of 1.34.

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 the consensus estimate of ($0.05) by ($0.10). The business had revenue of $379.77 million during the quarter, compared to analyst estimates of $382.25 million. Krispy Kreme had a negative net margin of 29.33% and a negative return on equity of 5.55%. The firm's quarterly revenue was down 13.5% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.05 earnings per share. As a group, equities research analysts predict that Krispy Kreme will post 0.07 EPS for the current year.

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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