Krispy Kreme (NASDAQ:DNUT) Shares Down 6.1% – Should You Sell?

Krispy Kreme, Inc. (NASDAQ:DNUT) was down 6.1% on Monday . The stock traded as low as $4.05 and last traded at $4.0450. Approximately 859,279 shares changed hands during trading, a decline of 65% from the average daily volume of 2,427,486 shares. The stock had previously closed at $4.31.

Analyst Upgrades and Downgrades

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

Krispy Kreme Stock Performance

The firm’s fifty day moving average price is $3.54 and its 200 day moving average price is $3.64. The company has a current ratio of 0.42, a quick ratio of 0.36 and a debt-to-equity ratio of 1.31. The firm has a market capitalization of $687.01 million, a PE ratio of -1.33 and a beta of 1.27.

Krispy Kreme (NASDAQ:DNUT) last released its quarterly earnings data on Thursday, May 7th. The company reported ($0.05) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.03) by ($0.02). Krispy Kreme had a negative net margin of 33.36% and a negative return on equity of 4.34%. The business had revenue of $367.03 million during the quarter, compared to analyst estimates of $359.42 million. During the same period in the previous year, the firm posted ($0.05) EPS. The firm’s revenue for the quarter was down 2.2% on a year-over-year basis. On average, research analysts anticipate that Krispy Kreme, Inc. will post -0.07 earnings per share for the current year.

Insider Activity

In other Krispy Kreme news, Director Bernardo Hees acquired 25,002 shares of Krispy Kreme stock in a transaction that occurred on Friday, June 5th. The stock was acquired at an average price of $3.49 per share, with a total value of $87,256.98. Following the purchase, the director owned 1,574,635 shares in the company, valued at approximately $5,495,476.15. This trade represents a 1.61% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Over the last three months, insiders have acquired 880,190 shares of company stock valued at $2,973,833. 1.60% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Krispy Kreme

Several institutional investors and hedge funds have recently modified their holdings of the business. Federated Hermes Inc. lifted its stake in shares of Krispy Kreme by 42.4% in the 4th quarter. Federated Hermes Inc. now owns 3,565,152 shares of the company’s stock valued at $14,332,000 after purchasing 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 valued at $11,704,000. Balyasny Asset Management L.P. lifted its stake 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 valued at $10,819,000 after purchasing an additional 2,257,061 shares during the last quarter. Geode Capital Management LLC lifted its position in Krispy Kreme by 7.4% during the 4th quarter. Geode Capital Management LLC now owns 2,231,100 shares of the company’s stock worth $8,971,000 after acquiring an additional 153,645 shares during the last quarter. Finally, Millennium Management LLC lifted its position in Krispy Kreme by 522.1% during the 1st quarter. Millennium Management LLC now owns 2,093,416 shares of the company’s stock worth $10,300,000 after acquiring an additional 1,756,932 shares during the last quarter. Institutional investors and hedge funds own 81.72% of the company’s stock.

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.