Krispy Kreme (NASDAQ:DNUT) Upgraded by Capital One Financial to “Overweight” Rating

Capital One Financial upgraded shares of Krispy Kreme (NASDAQ:DNUT) from an equal weight rating to an overweight rating in a research report report published on Thursday, MarketBeat Ratings reports. The firm currently has $6.00 price target on the stock.

Several other research analysts have also issued reports on DNUT. Weiss Ratings reissued a “sell (d)” rating on shares of Krispy Kreme in a research note on Monday, December 29th. Zacks Research raised shares of Krispy Kreme from a “strong sell” rating to a “hold” rating in a research note on Monday, December 22nd. Morgan Stanley reiterated an “underweight” rating and set a $3.00 price objective on shares of Krispy Kreme in a report on Tuesday, January 20th. Finally, Wall Street Zen raised shares of Krispy Kreme from a “sell” rating to a “hold” rating in a research report on Sunday, February 22nd. Three equities research analysts have rated the stock with a Buy rating, four have issued a Hold rating and three have issued a Sell rating to the company’s stock. According to MarketBeat, the stock currently has an average rating of “Hold” and a consensus target price of $4.85.

Krispy Kreme Trading Up 2.1%

NASDAQ DNUT opened at $3.42 on Thursday. The stock has a market capitalization of $588.92 million, a P/E ratio of -1.13 and a beta of 1.27. The business has a 50 day simple moving average of $3.31 and a 200 day simple moving average of $3.67. The company has a debt-to-equity ratio of 1.40, a current ratio of 0.38 and a quick ratio of 0.32. Krispy Kreme has a one year low of $2.50 and a one year high of $5.73.

Krispy Kreme (NASDAQ:DNUT) last issued its quarterly earnings results on Thursday, February 26th. The company reported $0.09 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.03 by $0.06. The firm had revenue of $392.37 million for the quarter, compared to analyst estimates of $386.72 million. Krispy Kreme had a negative return on equity of 3.66% and a negative net margin of 33.87%.The company’s revenue was down 2.9% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.01 earnings per share. Research analysts expect that Krispy Kreme will post 0.07 earnings per share for the current year.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of DNUT. Federated Hermes Inc. grew its holdings in shares of Krispy Kreme by 42.4% during the fourth quarter. Federated Hermes Inc. now owns 3,565,152 shares of the company’s stock valued at $14,332,000 after buying an additional 1,061,308 shares during the last quarter. Marshall Wace LLP acquired a new stake in shares of Krispy Kreme in the 3rd quarter worth about $11,704,000. Balyasny Asset Management L.P. raised its holdings in shares of Krispy Kreme by 419.2% in the 3rd quarter. Balyasny Asset Management L.P. now owns 2,795,546 shares of the company’s stock worth $10,819,000 after acquiring an additional 2,257,061 shares during the last quarter. Geode Capital Management LLC lifted its position in Krispy Kreme by 7.4% in the 4th quarter. Geode Capital Management LLC now owns 2,231,100 shares of the company’s stock valued at $8,971,000 after acquiring an additional 153,645 shares in the last quarter. Finally, Millennium Management LLC boosted its stake in Krispy Kreme by 522.1% during the 1st quarter. Millennium Management LLC now owns 2,093,416 shares of the company’s stock valued at $10,300,000 after purchasing an additional 1,756,932 shares during the last quarter. Institutional investors and hedge funds own 81.72% of the company’s stock.

Krispy Kreme News Roundup

Here are the key news stories impacting Krispy Kreme this week:

• Positive Sentiment: Krispy Kreme announced it will receive roughly $120M in cash from two deals (sale of most of its U.S. JV stake and sale of its Japan business), which management says supports its turnaround plan and reduces near-term funding pressure. Krispy Kreme nets $120M in cash from two deals as turnaround plan takes shape
• Positive Sentiment: Capital One upgraded DNUT to “overweight” with a $6.00 price target, signaling analyst conviction in a recovery and implying substantial upside from current levels. Finviz (Capital One upgrade)
• Neutral Sentiment: Company restructuring details: Krispy Kreme restructured its Western U.S. joint venture and sold its Japan business as part of the same strategic review that generated the $120M; these moves streamline operations but reduce direct international/partner revenue exposure. Krispy Kreme restructures Western US JV and sells Japan business
• Neutral Sentiment: Marketing and product promotions continue (Super Mario Galaxy movie donut collab, new Easter donuts) — positives for brand visibility and traffic but limited near-term materiality to revenue forecasts. These Super Mario Galaxy Movie-Themed Donuts Look Absolutely Delicious Krispy Kreme launches new Easter donuts
• Negative Sentiment: Despite the transactions and the upgrade, consensus analyst coverage remains weak (aggregate “Reduce” rating reported), reflecting concerns about margins, leverage and slower revenue growth. This keeps downside risk if execution or comps disappoint. Krispy Kreme, Inc. (NASDAQ:DNUT) Given Consensus Rating of “Reduce” by Analysts

About Krispy Kreme

Krispy Kreme Doughnuts, Inc (NASDAQ: DNUT) is a global retailer and wholesaler renowned for its signature Original Glazed doughnut and a variety of other sweet treats. The company operates through a combination of company-owned stores, franchise outlets and strategic partnerships with supermarkets, convenience stores and other foodservice channels. In addition to its doughnut portfolio, Krispy Kreme offers freshly brewed coffee, assorted beverages and proprietary seasonal items designed to drive traffic and foster brand loyalty.

Founded in 1937 in Winston-Salem, North Carolina, by Vernon Rudolph, Krispy Kreme has grown from a single local shop to a multinational brand.