Krispy Kreme (NASDAQ:DNUT) Sees Unusually-High Trading Volume – Still a Buy?

Krispy Kreme, Inc. (NASDAQ:DNUT) saw strong trading volume on Wednesday . 2,166,792 shares changed hands during trading, an increase of 4% from the previous session’s volume of 2,079,715 shares.The stock last traded at $6.67 and had previously closed at $7.13.

Analyst Upgrades and Downgrades

DNUT has been the subject of a number of analyst reports. Morgan Stanley lowered shares of Krispy Kreme from an “equal weight” rating to an “underweight” rating and dropped their target price for the stock from $12.00 to $6.00 in a report on Wednesday. JPMorgan Chase & Co. cut their price objective on Krispy Kreme from $14.00 to $13.00 and set an “overweight” rating on the stock in a research report on Tuesday, November 12th. Piper Sandler decreased their target price on Krispy Kreme from $18.00 to $12.00 and set an “overweight” rating for the company in a report on Wednesday. Finally, Truist Financial reiterated a “buy” rating and issued a $12.00 price target (down previously from $15.00) on shares of Krispy Kreme in a report on Wednesday. One analyst has rated the stock with a sell rating, two have issued a hold rating, five have issued a buy rating and one has issued a strong buy rating to the company’s stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $13.13.

Krispy Kreme Stock Down 7.9 %

The company’s fifty day moving average is $9.11 and its 200-day moving average is $10.40. The company has a market cap of $1.12 billion, a PE ratio of 38.79, a PEG ratio of 3.24 and a beta of 1.34. 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 (NASDAQ:DNUT) last issued its quarterly earnings results on Tuesday, February 25th. The company reported $0.01 earnings per share for the quarter, missing the consensus estimate of $0.10 by ($0.09). The business had revenue of $404.00 million for the quarter, compared to analysts’ expectations of $413.18 million. Krispy Kreme had a return on equity of 0.53% and a net margin of 1.64%. The company’s revenue was down 10.4% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.09 EPS. On average, analysts predict that Krispy Kreme, Inc. will post 0.07 EPS for the current year.

Krispy Kreme Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Wednesday, May 7th. Shareholders of record on Wednesday, April 23rd will be issued a dividend of $0.035 per share. This represents a $0.14 annualized dividend and a yield of 2.13%. The ex-dividend date of this dividend is Wednesday, April 23rd. Krispy Kreme’s dividend payout ratio is currently 82.35%.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the company. Spartan Fund Management Inc. boosted its stake in shares of Krispy Kreme by 150.0% in the fourth quarter. Spartan Fund Management Inc. now owns 5,000 shares of the company’s stock worth $50,000 after acquiring an additional 3,000 shares during the period. Point72 DIFC Ltd purchased a new stake in Krispy Kreme in the 3rd quarter worth $51,000. Central Pacific Bank Trust Division purchased a new stake in shares of Krispy Kreme in the fourth quarter worth about $71,000. Blue Trust Inc. increased its stake in Krispy Kreme by 28.3% in the 3rd quarter. Blue Trust Inc. now owns 8,064 shares of the company’s stock worth $87,000 after acquiring an additional 1,779 shares during the last quarter. Finally, First Hawaiian Bank bought a new position in shares of Krispy Kreme during the 4th quarter valued at approximately $111,000. Hedge funds and other institutional investors 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.