Krispy Kreme (NASDAQ:DNUT) Stock Price Breaks Above 50 Day Moving Average - Here's Why

Key Points

• Krispy Kreme shares rose above their 50-day moving average, reaching $3.21 and last trading at $3.20 on volume of nearly 3.7 million shares.
• Analyst sentiment remains cautious: the stock has an average “Reduce” rating, with one Buy, one Hold and two Sell ratings, and a consensus price target of $4.33.
• The company matched quarterly earnings expectations at a $0.03-per-share loss, while revenue of $331 million exceeded estimates but declined 12.8% year over year; institutional investors own 81.72% of the shares.

Krispy Kreme, Inc. (NASDAQ:DNUT - Get Free Report)'s share price passed above its 50-day moving average during trading on Thursday. The stock has a 50-day moving average of $3.12 and traded as high as $3.21. Krispy Kreme shares last traded at $3.20, with a volume of 3,694,918 shares changing hands.

Analysts Set New Price Targets

Several research analysts have recently weighed in on the company. Zacks Research raised Krispy Kreme from a "strong sell" rating to a "hold" rating in a research note on Tuesday. Wall Street Zen cut shares of Krispy Kreme from a "hold" rating to a "sell" rating in a research note on Saturday, August 8th. Weiss Ratings cut shares of Krispy Kreme from a "sell (d-)" rating to a "sell (e+)" rating in a research note on Friday, October 16th. Finally, Evercore set a $4.00 price target on shares of Krispy Kreme in a report on Friday, August 7th. One research analyst has rated the stock with a Buy rating, one has issued a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, Krispy Kreme has an average rating of "Reduce" and a consensus target price of $4.33.

Krispy Kreme Price Performance

The stock's fifty day moving average price is $3.12 and its 200-day moving average price is $3.35. The firm has a market cap of $551.68 million, a PE ratio of -5.71 and a beta of 1.25. The company has a debt-to-equity ratio of 1.28, a current ratio of 0.36 and a quick ratio of 0.29.

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

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the business. Allworth Financial LP acquired a new stake in shares of Krispy Kreme in the second quarter valued at approximately $25,000. State of Alaska Department of Revenue acquired a new position in Krispy Kreme during the third quarter worth $27,000. Apollon Wealth Management LLC acquired a new position in Krispy Kreme during the first quarter worth $35,000. Coastal Bridge Advisors LLC acquired a new position in Krispy Kreme during the second quarter worth $37,000. Finally, Abel Hall LLC purchased a new stake in Krispy Kreme in the 1st quarter valued at $45,000. 81.72% of the stock is owned by hedge funds and other institutional investors.

Krispy Kreme Company Profile

Krispy Kreme, Inc is a global doughnut and coffee company best known for its Original Glazed doughnuts. The company sells doughnuts, packaged sweets, coffee and other beverages through Krispy Kreme shops, in-store retail displays and digital ordering channels.

Krispy Kreme operates a hub-and-spoke distribution model that combines doughnut-making hubs and shops with delivery to grocery stores, convenience stores and other retail locations. Its products are also distributed through partnerships and branded locations, allowing the company to expand its reach beyond traditional Krispy Kreme shops.

Founded in 1937 in Winston-Salem, North Carolina, by Vernon Rudolph, Krispy Kreme has grown into an international brand serving customers in the United States and various markets across North America, Europe, Asia and Oceania.

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