Krispy Kreme (NASDAQ:DNUT) Lowered to Strong Sell Rating by Zacks Research

Zacks Research downgraded shares of Krispy Kreme (NASDAQ:DNUT) from a hold rating to a strong sell rating in a research note published on Thursday morning,Zacks.com reports.

A number of other brokerages also recently issued reports on DNUT. Wall Street Zen downgraded shares of Krispy Kreme from a “hold” rating to a “sell” rating in a research report on Saturday. Weiss Ratings reissued a “sell (d)” rating on shares of Krispy Kreme in a research report on Wednesday, June 24th. Finally, Evercore set a $4.00 target price on Krispy Kreme in a research note on Friday. Two research analysts have rated the stock with a Buy rating and four have given a Sell rating to the company’s stock. Based on data from MarketBeat, the company currently has an average rating of “Reduce” and an average price target of $4.33.

Krispy Kreme Price Performance

DNUT opened at $3.34 on Thursday. 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 market capitalization of $575.82 million, a price-to-earnings ratio of -5.96 and a beta of 1.27. The firm’s fifty day moving average price is $3.46 and its two-hundred day moving average price is $3.41. Krispy Kreme has a 1 year low of $2.88 and a 1 year high of $5.11.

Krispy Kreme (NASDAQ:DNUT) last announced its earnings results on Thursday, August 6th. The company reported ($0.03) EPS for the quarter, meeting the consensus estimate of ($0.03). Krispy Kreme had a negative net margin of 6.16% and a negative return on equity of 1.15%. The company had revenue of $331.00 million during the quarter, compared to the consensus estimate of $303.35 million. During the same quarter in the prior year, the company posted ($0.15) earnings per share. The firm’s revenue for the quarter was down 12.8% on a year-over-year basis. As a group, analysts anticipate that Krispy Kreme will post -0.07 earnings per share for the current fiscal year.

Insider Activity at Krispy Kreme

In other Krispy Kreme news, Director Bernardo Hees bought 25,002 shares of the stock in a transaction dated Friday, June 5th. The shares were bought at an average cost of $3.49 per share, for a total transaction of $87,256.98. Following the purchase, the director directly owned 1,574,635 shares of the company’s stock, valued at approximately $5,495,476.15. This trade represents a 1.61% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. In the last quarter, insiders acquired 880,190 shares of company stock worth $2,973,833. Insiders own 1.60% of the company’s stock.

Institutional Trading of Krispy Kreme

Large investors have recently added to or reduced their stakes in the stock. AQR Capital Management LLC bought a new stake in Krispy Kreme in the first quarter worth about $217,000. Millennium Management LLC increased its stake in shares of 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 purchasing an additional 1,756,932 shares during the last quarter. Creative Planning increased its stake in shares of Krispy Kreme by 568.2% during the 2nd quarter. Creative Planning now owns 67,074 shares of the company’s stock worth $195,000 after purchasing an additional 57,036 shares during the last quarter. Legal & General Group Plc increased its stake in shares of Krispy Kreme by 44.0% during the 2nd quarter. Legal & General Group Plc now owns 137,268 shares of the company’s stock worth $399,000 after purchasing an additional 41,929 shares during the last quarter. Finally, Prudential Financial Inc. bought a new stake in shares of Krispy Kreme in the 2nd quarter worth approximately $32,000. Hedge funds and other institutional investors own 81.72% of the company’s stock.

Krispy Kreme Company Profile

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.