Krispy Kreme (NASDAQ:DNUT) Cut to Hold at Truist Financial

Truist Financial downgraded shares of Krispy Kreme (NASDAQ:DNUT) from a buy rating to a hold rating in a research note released on Thursday, Marketbeat reports.

Several other brokerages also recently issued reports on DNUT. Piper Sandler cut their target price on shares of Krispy Kreme from $18.00 to $12.00 and set an “overweight” rating on the stock in a research note on Wednesday, February 26th. Morgan Stanley downgraded Krispy Kreme from an “equal weight” rating to an “underweight” rating and reduced their price objective for the stock from $12.00 to $6.00 in a research note on Wednesday, February 26th. One analyst has rated the stock with a sell rating, three have given a hold rating, four have issued a buy rating and one has issued a strong buy rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $10.58.

Krispy Kreme Stock Performance

Shares of NASDAQ DNUT opened at $2.73 on Thursday. The stock’s fifty day simple moving average is $4.72 and its 200 day simple moving average is $7.99. The stock has a market capitalization of $465.90 million, a price-to-earnings ratio of 16.06, a PEG ratio of 3.24 and a beta of 1.49. The company has a quick ratio of 0.28, a current ratio of 0.35 and a debt-to-equity ratio of 0.67. Krispy Kreme has a 52-week low of $2.58 and a 52-week high of $13.10.

Krispy Kreme (NASDAQ:DNUT) last issued its quarterly earnings results on Thursday, May 8th. The company reported ($0.05) earnings per share for the quarter, hitting analysts’ consensus estimates of ($0.05). The firm had revenue of $375.18 million for the quarter, compared to analysts’ expectations of $383.97 million. Krispy Kreme had a return on equity of 0.53% and a net margin of 1.64%. Krispy Kreme’s revenue was down 15.2% on a year-over-year basis. During the same quarter last year, the business posted $0.07 EPS. As a group, sell-side analysts forecast that Krispy Kreme will post 0.07 earnings per share for the current fiscal year.

Krispy Kreme Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, May 7th. Stockholders of record on Wednesday, April 23rd were issued a dividend of $0.035 per share. The ex-dividend date was Wednesday, April 23rd. This represents a $0.14 annualized dividend and a dividend yield of 5.13%. Krispy Kreme’s dividend payout ratio is -107.69%.

Insider Activity at Krispy Kreme

In other Krispy Kreme news, major shareholder Indulgence B.V. Jab sold 694,445 shares of the business’s stock in a transaction that occurred on Wednesday, April 23rd. The shares were sold at an average price of $4.32, for a total value of $3,000,002.40. Following the completion of the sale, the insider now directly owns 74,190,990 shares of the company’s stock, valued at $320,505,076.80. The trade was a 0.93 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. 5.30% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Krispy Kreme

A number of large investors have recently bought and sold shares of DNUT. BNP Paribas Financial Markets acquired a new stake in shares of Krispy Kreme in the fourth quarter worth about $152,305,000. Bamco Inc. NY lifted its holdings in Krispy Kreme by 24.7% in the 4th quarter. Bamco Inc. NY now owns 13,069,717 shares of the company’s stock worth $129,782,000 after purchasing an additional 2,588,398 shares during the last quarter. Cooper Creek Partners Management LLC lifted its holdings in Krispy Kreme by 43.0% in the 4th quarter. Cooper Creek Partners Management LLC now owns 7,264,760 shares of the company’s stock worth $72,139,000 after purchasing an additional 2,186,136 shares during the last quarter. Federated Hermes Inc. bought a new stake in Krispy Kreme during the first quarter worth approximately $8,271,000. Finally, Barrow Hanley Mewhinney & Strauss LLC acquired a new position in Krispy Kreme during the fourth quarter valued at approximately $10,591,000. 81.72% of the stock is currently owned by institutional investors.

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.