Krispy Kreme (NASDAQ:DNUT) Reaches New 12-Month Low - Should You Sell?

Key Points

• Krispy Kreme shares fell to a new 52-week low of $2.88, trading below both their 50-day and 200-day moving averages. The company has a market capitalization of approximately $503 million and remains unprofitable.
• Analyst sentiment is mostly negative: recent firms downgraded the stock to “sell” or “strong sell,” while MarketBeat reports a consensus rating of “Reduce” and an average price target of $4.33.
• Although quarterly revenue of $331 million exceeded estimates, it declined 12.8% year over year, and Krispy Kreme reported a $0.03-per-share loss and a negative net margin. Institutional investors own 81.72% of the company, with several funds recently increasing their positions.

Shares of Krispy Kreme, Inc. (NASDAQ:DNUT - Get Free Report) hit a new 52-week low during trading on Monday. The company traded as low as $2.88 and last traded at $2.9150, with a volume of 159946 shares trading hands. The stock had previously closed at $2.89.

Analyst Upgrades and Downgrades

A number of brokerages have recently issued reports on DNUT. Wall Street Zen cut shares of Krispy Kreme from a "hold" rating to a "sell" rating in a report on Saturday, August 8th. Evercore set a $4.00 target price on shares of Krispy Kreme in a report on Friday, August 7th. Zacks Research downgraded Krispy Kreme from a "hold" rating to a "strong sell" rating in a research note on Thursday, August 6th. Finally, Weiss Ratings downgraded Krispy Kreme from a "sell (d-)" rating to a "sell (e+)" rating in a research note on Friday, September 11th. Two research analysts have rated the stock with a Buy rating and three have issued a Sell rating to the stock. According to MarketBeat.com, the company has a consensus rating of "Reduce" and an average target price of $4.33.

Krispy Kreme Stock Performance

The company has a debt-to-equity ratio of 1.28, a current ratio of 0.36 and a quick ratio of 0.29. The company's fifty day moving average price is $3.25 and its 200 day moving average price is $3.42. The company has a market cap of $502.55 million, a PE ratio of -5.21 and a beta of 1.27.

Krispy Kreme (NASDAQ:DNUT - Get Free Report) last issued its quarterly earnings data on Thursday, August 6th. The company reported ($0.03) earnings per share (EPS) for the quarter, hitting analysts' consensus estimates of ($0.03). Krispy Kreme had a negative net margin of 6.16% and a negative return on equity of 1.17%. The business had revenue of $331.00 million during the quarter, compared to the consensus estimate of $303.35 million. During the same period in the prior year, the firm posted ($0.15) EPS. The firm's quarterly revenue was down 12.8% compared to the same quarter last year. On average, equities research analysts predict that Krispy Kreme, Inc. will post -0.06 earnings per share for the current year.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of the business. Allworth Financial LP raised its position in shares of Krispy Kreme by 83.7% in the second quarter. Allworth Financial LP now owns 7,031 shares of the company's stock valued at $25,000 after purchasing an additional 3,204 shares during the period. AXQ Capital LP grew its stake in Krispy Kreme by 44.5% in the 2nd quarter. AXQ Capital LP now owns 22,600 shares of the company's stock valued at $80,000 after buying an additional 6,955 shares in the last quarter. Apollon Wealth Management LLC bought a new stake in Krispy Kreme during the 1st quarter valued at $35,000. Coastal Bridge Advisors LLC bought a new stake in Krispy Kreme during the 2nd quarter valued at $37,000. Finally, R Squared Ltd lifted its position in shares of Krispy Kreme by 48.0% during the first quarter. R Squared Ltd now owns 34,012 shares of the company's stock worth $115,000 after acquiring an additional 11,029 shares in the last quarter. Hedge funds and other institutional investors own 81.72% of the company's stock.

About Krispy Kreme

Krispy Kreme, Inc is a global doughnut and coffee company best known for its Original Glazed doughnuts. The company operates and franchises doughnut shops, cafés and other retail locations, while also distributing its products through grocery stores, convenience stores and other points of access. Its offerings generally include doughnuts, coffee and other beverages, as well as assorted baked goods and seasonal products.

Founded in Winston-Salem, North Carolina, in 1937 by Vernon Rudolph, Krispy Kreme has expanded from a regional doughnut maker into an international brand.

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