Weiss Ratings Reaffirms Sell (E+) Rating for Krispy Kreme (NASDAQ:DNUT)

Key Points

• Weiss Ratings has reaffirmed a "sell (E+)" rating for Krispy Kreme (NASDAQ:DNUT), indicating continued concerns about the company's stock performance.
• Several brokerages have adjusted their price targets for Krispy Kreme, with Morgan Stanley reducing its target from $3.00 to $2.50, while Bank of America decreased its target from $7.00 to $6.00.
• Krispy Kreme reported a net loss of ($0.15) EPS, missing expectations, with a revenue drop of 13.5% year-over-year, highlighting ongoing financial challenges.

Krispy Kreme (NASDAQ:DNUT - Get Free Report)'s stock had its "sell (e+)" rating reissued by Weiss Ratings in a research report issued to clients and investors on Wednesday,Weiss Ratings reports.

Several other brokerages have also recently issued reports on DNUT. Morgan Stanley reduced their price objective on Krispy Kreme from $3.00 to $2.50 and set an "overweight" rating on the stock in a research note on Monday, July 14th. Bank of America reduced their price objective on Krispy Kreme from $7.00 to $6.00 and set a "buy" rating on the stock in a research note on Friday, July 18th. Capital One Financial cut their target price on Krispy Kreme from $6.00 to $4.00 and set an "equal weight" rating on the stock in a research note on Thursday, October 2nd. BNP Paribas upgraded Krispy Kreme to a "hold" rating in a research note on Monday, July 21st. Finally, JPMorgan Chase & Co. reiterated an "underweight" rating on shares of Krispy Kreme in a research note on Wednesday, August 27th. Three equities research analysts have rated the stock with a Buy rating, five have given a Hold rating and three have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company has an average rating of "Hold" and an average target price of $6.45.

Krispy Kreme Stock Up 1.7%

DNUT opened at $3.49 on Wednesday. The firm has a 50 day moving average price of $3.44 and a 200 day moving average price of $3.56. The company has a market cap of $597.49 million, a PE ratio of -1.32 and a beta of 1.34. Krispy Kreme has a 1 year low of $2.50 and a 1 year high of $12.68. The company has a debt-to-equity ratio of 1.24, a quick ratio of 0.26 and a current ratio of 0.34.

Krispy Kreme (NASDAQ:DNUT - Get Free Report) last issued its quarterly earnings data 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). Krispy Kreme had a negative net margin of 29.33% and a negative return on equity of 5.55%. The firm had revenue of $379.77 million during the quarter, compared to analyst estimates of $382.25 million. During the same period last year, the business earned $0.05 EPS. The firm's revenue was down 13.5% compared to the same quarter last year. Sell-side analysts expect that Krispy Kreme will post 0.07 earnings per share for the current year.

Institutional Inflows and Outflows

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

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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