Krispy Kreme (NASDAQ:DNUT) Trading Down 3.2% – Should You Sell?

Shares of Krispy Kreme, Inc. (NASDAQ:DNUT) were down 3.2% during trading on Wednesday . The stock traded as low as $5.59 and last traded at $5.54. Approximately 107,329 shares changed hands during mid-day trading, a decline of 96% from the average daily volume of 2,410,910 shares. The stock had previously closed at $5.72.

Wall Street Analyst Weigh In

DNUT has been the subject of several research reports. Morgan Stanley downgraded Krispy Kreme from an “equal weight” rating to an “underweight” rating and cut their price objective for the stock from $12.00 to $6.00 in a research report on Wednesday, February 26th. Truist Financial reissued a “buy” rating and issued a $12.00 price target (down from $15.00) on shares of Krispy Kreme in a report on Wednesday, February 26th. Finally, Piper Sandler dropped their price objective on Krispy Kreme from $18.00 to $12.00 and set an “overweight” rating for the company in a research report on Wednesday, February 26th. One investment analyst has rated the stock with a sell rating, two have issued a hold rating, five have issued a buy rating and one has given a strong buy rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $13.13.

Krispy Kreme Trading Up 0.7 %

The business has a 50 day simple moving average of $7.80 and a 200-day simple moving average of $9.82. The company has a current ratio of 0.35, a quick ratio of 0.28 and a debt-to-equity ratio of 0.67. The stock has a market capitalization of $960.49 million, a price-to-earnings ratio of 33.18, a price-to-earnings-growth ratio of 3.24 and a beta of 1.40.

Krispy Kreme (NASDAQ:DNUT) last released its earnings results on Tuesday, February 25th. The company reported $0.01 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.10 by ($0.09). The company had revenue of $404.00 million during the quarter, compared to analyst estimates of $413.18 million. Krispy Kreme had a return on equity of 0.53% and a net margin of 1.64%. Krispy Kreme’s revenue was down 10.4% on a year-over-year basis. During the same period in the prior year, the business posted $0.09 earnings per share. On average, equities analysts predict that Krispy Kreme, Inc. will post 0.07 earnings per share for the current year.

Krispy Kreme Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, May 7th. Investors of record on Wednesday, April 23rd will be issued a $0.035 dividend. This represents a $0.14 dividend on an annualized basis and a yield of 2.48%. The ex-dividend date is Wednesday, April 23rd. Krispy Kreme’s payout ratio is currently 700.00%.

Institutional Investors Weigh In On Krispy Kreme

Several institutional investors and hedge funds have recently added to or reduced their stakes in DNUT. Edgestream Partners L.P. grew its holdings in shares of Krispy Kreme by 158.9% during the 4th quarter. Edgestream Partners L.P. now owns 130,995 shares of the company’s stock worth $1,301,000 after purchasing an additional 80,394 shares during the period. Landscape Capital Management L.L.C. raised its stake in shares of Krispy Kreme by 86.1% in the 3rd quarter. Landscape Capital Management L.L.C. now owns 216,559 shares of the company’s stock valued at $2,326,000 after acquiring an additional 100,163 shares during the period. Paloma Partners Management Co lifted its holdings in shares of Krispy Kreme by 6,993.4% during the 3rd quarter. Paloma Partners Management Co now owns 872,068 shares of the company’s stock valued at $9,366,000 after acquiring an additional 859,774 shares in the last quarter. Rhumbline Advisers boosted its position in Krispy Kreme by 2.2% during the 4th quarter. Rhumbline Advisers now owns 119,083 shares of the company’s stock worth $1,182,000 after purchasing an additional 2,532 shares during the period. Finally, Connor Clark & Lunn Investment Management Ltd. purchased a new position in Krispy Kreme in the third quarter valued at about $810,000. 81.72% of the stock is currently 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.