Krispy Kreme (NASDAQ:DNUT) Shares Gap Up on Insider Buying Activity

Shares of Krispy Kreme, Inc. (NASDAQ:DNUT) gapped up prior to trading on Friday after an insider bought additional shares in the company. The stock had previously closed at $3.42, but opened at $3.64. Krispy Kreme shares last traded at $3.59, with a volume of 723,421 shares changing hands.

Specifically, Director Bernardo Hees bought 200,989 shares of the business’s stock in a transaction on Thursday, May 28th. The shares were bought at an average cost of $3.42 per share, with a total value of $687,382.38. Following the purchase, the director directly owned 919,522 shares in the company, valued at $3,144,765.24. This trade represents a 27.97% increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director Bernardo Hees bought 22,114 shares of Krispy Kreme stock in a transaction dated Wednesday, May 27th. The stock was acquired at an average price of $3.38 per share, with a total value of $74,745.32. Following the acquisition, the director directly owned 718,533 shares of the company’s stock, valued at approximately $2,428,641.54. This represents a 3.18% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing.

Wall Street Analyst Weigh In

A number of research analysts have recently weighed in on the company. Weiss Ratings reiterated a “sell (d)” rating on shares of Krispy Kreme in a report on Friday, March 27th. Wall Street Zen upgraded Krispy Kreme from a “sell” rating to a “hold” rating in a research report on Sunday, May 17th. Zacks Research cut Krispy Kreme from a “strong-buy” rating to a “hold” rating in a research note on Friday, May 15th. Finally, Capital One Financial upgraded Krispy Kreme from an “equal weight” rating to an “overweight” rating and set a $6.00 target price on the stock in a report on Thursday, March 26th. Three research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus target price of $4.63.

Krispy Kreme Trading Up 3.9%

The company has a debt-to-equity ratio of 1.31, a current ratio of 0.42 and a quick ratio of 0.36. The company has a fifty day moving average of $3.49 and a 200-day moving average of $3.66. The firm has a market capitalization of $612.88 million, a PE ratio of -1.19 and a beta of 1.32.

Krispy Kreme (NASDAQ:DNUT) last issued its earnings results on Thursday, May 7th. The company reported ($0.05) EPS for the quarter, missing analysts’ consensus estimates of ($0.03) by ($0.02). The firm had revenue of $367.03 million during the quarter, compared to analysts’ expectations of $359.42 million. Krispy Kreme had a negative net margin of 33.36% and a negative return on equity of 4.34%. The business’s revenue for the quarter was down 2.2% compared to the same quarter last year. During the same quarter last year, the firm earned ($0.05) EPS. On average, sell-side analysts anticipate that Krispy Kreme, Inc. will post -0.01 earnings per share for the current fiscal year.

Institutional Trading of Krispy Kreme

A number of institutional investors have recently added to or reduced their stakes in DNUT. Russell Investments Group Ltd. raised its holdings in Krispy Kreme by 1,229.5% during the third quarter. Russell Investments Group Ltd. now owns 8,469 shares of the company’s stock valued at $33,000 after buying an additional 7,832 shares in the last quarter. FNY Investment Advisers LLC bought a new stake in shares of Krispy Kreme during the 4th quarter worth about $40,000. Apollon Wealth Management LLC bought a new stake in shares of Krispy Kreme during the 1st quarter worth about $35,000. Prudential Financial Inc. acquired a new position in shares of Krispy Kreme during the 2nd quarter valued at about $32,000. Finally, Captrust Financial Advisors acquired a new position in shares of Krispy Kreme during the 2nd quarter valued at about $34,000. 81.72% of the stock is currently owned by institutional investors and hedge funds.

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.