Krispy Kreme (NASDAQ:DNUT) Shares Down 10.6% – Should You Sell?

Krispy Kreme, Inc. (NASDAQ:DNUT) shares fell 10.6% during trading on Wednesday . The stock traded as low as $3.90 and last traded at $3.8550. 2,324,148 shares changed hands during mid-day trading, an increase of 0% from the average session volume of 2,314,870 shares. The stock had previously closed at $4.31.

Analyst Ratings Changes

A number of analysts have weighed in on the stock. Singular Research raised shares of Krispy Kreme to a “moderate buy” rating in a report on Wednesday, October 22nd. Weiss Ratings restated a “sell (d)” rating on shares of Krispy Kreme in a research note on Monday, December 29th. Capital One Financial cut their price target on Krispy Kreme from $6.00 to $4.00 and set an “equal weight” rating on the stock in a report on Thursday, October 2nd. Zacks Research raised Krispy Kreme from a “strong sell” rating to a “hold” rating in a research report on Monday, December 22nd. Finally, Wall Street Zen lowered shares of Krispy Kreme from a “hold” rating to a “sell” rating in a research report on Saturday, January 3rd. Four investment analysts have rated the stock with a Buy rating, six have assigned a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, Krispy Kreme currently has an average rating of “Hold” and an average price target of $5.51.

Krispy Kreme Trading Down 10.4%

The company has a current ratio of 0.36, a quick ratio of 0.30 and a debt-to-equity ratio of 1.31. The firm has a 50-day moving average price of $4.18 and a 200-day moving average price of $3.73. The company has a market capitalization of $661.22 million, a price-to-earnings ratio of -1.29 and a beta of 1.32.

Krispy Kreme (NASDAQ:DNUT) last announced its earnings results on Thursday, November 6th. The company reported $0.01 earnings per share for the quarter, beating the consensus estimate of ($0.06) by $0.07. Krispy Kreme had a negative return on equity of 5.13% and a negative net margin of 33.27%.The business had revenue of $375.30 million during the quarter, compared to analysts’ expectations of $378.29 million. During the same quarter last year, the business posted ($0.01) earnings per share. The company’s quarterly revenue was down 1.2% on a year-over-year basis. As a group, sell-side analysts predict that Krispy Kreme, Inc. will post 0.07 EPS for the current year.

Hedge Funds Weigh In On Krispy Kreme

A number of hedge funds and other institutional investors have recently modified their holdings of DNUT. Marshall Wace LLP acquired a new position in shares of Krispy Kreme in the 3rd quarter valued at about $11,704,000. Federated Hermes Inc. raised its stake in shares of Krispy Kreme by 78.9% in the 2nd quarter. Federated Hermes Inc. now owns 3,007,345 shares of the company’s stock valued at $8,751,000 after acquiring an additional 1,326,212 shares in the last quarter. Balyasny Asset Management L.P. lifted its holdings in 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 worth $10,819,000 after purchasing an additional 2,257,061 shares during the last quarter. Millennium Management LLC raised its position in shares of Krispy Kreme by 522.1% in the first quarter. Millennium Management LLC now owns 2,093,416 shares of the company’s stock valued at $10,300,000 after purchasing an additional 1,756,932 shares during the period. Finally, SG Americas Securities LLC lifted its stake in shares of Krispy Kreme by 53.0% in the third quarter. SG Americas Securities LLC now owns 1,199,552 shares of the company’s stock worth $4,642,000 after buying an additional 415,416 shares during the last quarter. Institutional investors and hedge funds 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.