HSBC Upgrades Krispy Kreme (NASDAQ:DNUT) to Buy

HSBC upgraded shares of Krispy Kreme (NASDAQ:DNUT) from a hold rating to a buy rating in a research note released on Tuesday morning, Marketbeat Ratings reports. They currently have $14.00 target price on the stock.

DNUT has been the topic of a number of other reports. Citigroup boosted their price target on shares of Krispy Kreme from $14.00 to $19.00 and gave the company a neutral rating in a research note on Wednesday, March 27th. JPMorgan Chase & Co. began coverage on Krispy Kreme in a research note on Monday, June 3rd. They issued an overweight rating and a $14.00 price objective for the company. Bank of America decreased their target price on Krispy Kreme from $19.00 to $16.00 and set a buy rating on the stock in a research note on Wednesday, July 17th. Piper Sandler upgraded shares of Krispy Kreme from a neutral rating to an overweight rating and boosted their price target for the stock from $14.00 to $20.00 in a research note on Friday, April 5th. Finally, Truist Financial raised shares of Krispy Kreme from a hold rating to a buy rating and upped their target price for the stock from $13.00 to $15.00 in a research note on Monday, June 10th. Three equities research analysts have rated the stock with a hold rating, five have issued a buy rating and one has assigned a strong buy rating to the stock. According to data from MarketBeat, Krispy Kreme currently has an average rating of Moderate Buy and an average price target of $16.25.

Krispy Kreme Price Performance

Shares of DNUT stock opened at $10.87 on Tuesday. The firm’s 50-day moving average is $10.89 and its two-hundred day moving average is $12.49. Krispy Kreme has a 12 month low of $9.70 and a 12 month high of $17.84. The company has a debt-to-equity ratio of 0.71, a current ratio of 0.36 and a quick ratio of 0.27. The company has a market capitalization of $1.83 billion, a PE ratio of -40.26, a price-to-earnings-growth ratio of 1.73 and a beta of 1.41.

Krispy Kreme (NASDAQ:DNUT) last released its quarterly earnings data on Thursday, May 9th. The company reported $0.03 EPS for the quarter, meeting analysts’ consensus estimates of $0.03. Krispy Kreme had a positive return on equity of 1.40% and a negative net margin of 2.70%. The firm had revenue of $442.70 million for the quarter, compared to analysts’ expectations of $433.87 million. Analysts predict that Krispy Kreme will post 0.16 earnings per share for the current year.

Krispy Kreme Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, August 7th. Stockholders of record on Wednesday, July 24th will be issued a $0.035 dividend. The ex-dividend date is Wednesday, July 24th. This represents a $0.14 dividend on an annualized basis and a dividend yield of 1.29%. Krispy Kreme’s payout ratio is currently -51.85%.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the stock. Vanguard Group Inc. lifted its position in Krispy Kreme by 25.7% in the third quarter. Vanguard Group Inc. now owns 8,423,196 shares of the company’s stock valued at $105,037,000 after acquiring an additional 1,721,287 shares during the last quarter. SG Americas Securities LLC purchased a new stake in shares of Krispy Kreme in the 4th quarter valued at about $272,000. Zurcher Kantonalbank Zurich Cantonalbank lifted its holdings in shares of Krispy Kreme by 44.4% in the 4th quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 21,317 shares of the company’s stock valued at $322,000 after purchasing an additional 6,553 shares during the last quarter. Handelsbanken Fonder AB acquired a new position in Krispy Kreme during the fourth quarter worth approximately $225,000. Finally, Truist Financial Corp lifted its stake in Krispy Kreme by 3.0% in the fourth quarter. Truist Financial Corp now owns 92,719 shares of the company’s stock valued at $1,399,000 after buying an additional 2,701 shares during the last quarter. Institutional investors and hedge funds own 81.72% of the company’s stock.

Krispy Kreme Company Profile

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.