Krispy Kreme (NASDAQ:DNUT) Stock Price Down 5.9% After Analyst Downgrade

Krispy Kreme, Inc. (NASDAQ:DNUT)’s stock price traded down 5.9% during trading on Monday after Morgan Stanley lowered their price target on the stock from $3.00 to $2.50. Morgan Stanley currently has an overweight rating on the stock. Krispy Kreme traded as low as $3.14 and last traded at $3.14. 656,082 shares traded hands during mid-day trading, a decline of 76% from the average session volume of 2,777,100 shares. The stock had previously closed at $3.33.

DNUT has been the topic of several other research reports. Citigroup reduced their target price on shares of Krispy Kreme from $4.75 to $3.60 and set a “neutral” rating on the stock in a report on Friday, May 9th. JPMorgan Chase & Co. reaffirmed a “neutral” rating on shares of Krispy Kreme in a report on Wednesday, May 14th. Finally, Truist Financial lowered shares of Krispy Kreme from a “buy” rating to a “hold” rating in a report on Thursday, May 8th. Four research analysts have rated the stock with a hold rating, four have given a buy rating and one has given a strong buy rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $10.14.

Insider Activity

In related news, major shareholder Indulgence B.V. Jab sold 694,445 shares of the stock in a transaction dated Wednesday, April 23rd. The shares were sold at an average price of $4.32, for a total value of $3,000,002.40. Following the completion of the transaction, the insider directly owned 74,190,990 shares in the company, valued at $320,505,076.80. This trade represents a 0.93% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. 3.00% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the business. Counterpoint Mutual Funds LLC bought a new position in shares of Krispy Kreme in the 2nd quarter worth about $333,000. AFG Fiduciary Services Limited Partnership bought a new stake in Krispy Kreme during the 2nd quarter valued at about $81,000. First Hawaiian Bank increased its stake in Krispy Kreme by 348.0% during the 1st quarter. First Hawaiian Bank now owns 49,850 shares of the company’s stock valued at $245,000 after purchasing an additional 38,722 shares in the last quarter. Rhumbline Advisers increased its stake in Krispy Kreme by 3.2% during the 1st quarter. Rhumbline Advisers now owns 122,856 shares of the company’s stock valued at $604,000 after purchasing an additional 3,773 shares in the last quarter. Finally, Clearline Capital LP bought a new stake in Krispy Kreme during the 1st quarter valued at about $3,459,000. 81.72% of the stock is currently owned by institutional investors.

Krispy Kreme Stock Performance

The firm has a market capitalization of $549.52 million, a P/E ratio of -24.77 and a beta of 1.29. The company has a current ratio of 0.35, a quick ratio of 0.28 and a debt-to-equity ratio of 0.83. The business’s 50 day simple moving average is $3.03 and its two-hundred day simple moving average is $5.47.

Krispy Kreme (NASDAQ:DNUT) last released its quarterly earnings data on Thursday, May 8th. The company reported ($0.05) earnings per share for the quarter, meeting analysts’ consensus estimates of ($0.05). The business had revenue of $375.18 million during the quarter, compared to analyst estimates of $383.97 million. Krispy Kreme had a negative net margin of 1.36% and a negative return on equity of 2.13%. Krispy Kreme’s revenue was down 15.2% compared to the same quarter last year. During the same period last year, the business earned $0.07 EPS. Sell-side analysts anticipate that Krispy Kreme, Inc. will post 0.07 EPS for the current fiscal year.

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.