Krispy Kreme (NASDAQ:DNUT) Shares Down 6.2% – Should You Sell?

Shares of Krispy Kreme, Inc. (NASDAQ:DNUT) were down 6.2% during trading on Tuesday . The company traded as low as $4.04 and last traded at $4.02. Approximately 1,863,022 shares changed hands during trading, a decline of 41% from the average daily volume of 3,137,751 shares. The stock had previously closed at $4.28.

Wall Street Analysts Forecast Growth

Several equities analysts have recently issued reports on the stock. Piper Sandler lowered their target price on shares of Krispy Kreme from $18.00 to $12.00 and set an “overweight” rating for the company in a report on Wednesday, February 26th. Truist Financial reiterated a “buy” rating and set a $12.00 price objective (down previously from $15.00) on shares of Krispy Kreme in a research note on Wednesday, February 26th. Finally, Morgan Stanley downgraded Krispy Kreme from an “equal weight” rating to an “underweight” rating and reduced their price target for the company from $12.00 to $6.00 in a report on Wednesday, February 26th. One research analyst has rated the stock with a sell rating, one has assigned a hold rating, five have given a buy rating and one has given a strong buy rating to the company’s stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $12.29.

Krispy Kreme Stock Performance

The company has a market cap of $707.60 million, a PE ratio of 24.44, a PEG ratio of 3.24 and a beta of 1.47. The company has a debt-to-equity ratio of 0.67, a current ratio of 0.35 and a quick ratio of 0.28. The business has a 50-day moving average of $6.02 and a 200 day moving average of $8.83.

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). Krispy Kreme had a net margin of 1.64% and a return on equity of 0.53%. The firm had revenue of $404.00 million for the quarter, compared to analysts’ expectations of $413.18 million. During the same period in the prior year, the firm earned $0.09 EPS. Krispy Kreme’s revenue for the quarter was down 10.4% compared to the same quarter last year. Equities research analysts anticipate that Krispy Kreme, Inc. will post 0.07 EPS for the current fiscal year.

Krispy Kreme Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, May 7th. Shareholders of record on Wednesday, April 23rd will be paid a $0.035 dividend. This represents a $0.14 dividend on an annualized basis and a yield of 3.37%. The ex-dividend date of this dividend is Wednesday, April 23rd. Krispy Kreme’s payout ratio is 700.00%.

Institutional Investors Weigh In On Krispy Kreme

Large investors have recently bought and sold shares of the business. BNP Paribas Financial Markets purchased a new position in shares of Krispy Kreme in the 4th quarter worth $152,305,000. Bamco Inc. NY grew its position in Krispy Kreme by 24.7% in the fourth quarter. Bamco Inc. NY now owns 13,069,717 shares of the company’s stock worth $129,782,000 after acquiring an additional 2,588,398 shares in the last quarter. Cooper Creek Partners Management LLC increased its stake in Krispy Kreme by 43.0% during the fourth quarter. Cooper Creek Partners Management LLC now owns 7,264,760 shares of the company’s stock worth $72,139,000 after acquiring an additional 2,186,136 shares during the last quarter. Barrow Hanley Mewhinney & Strauss LLC purchased a new stake in Krispy Kreme during the fourth quarter valued at approximately $10,591,000. Finally, Peregrine Capital Management LLC bought a new stake in shares of Krispy Kreme in the 4th quarter valued at approximately $5,897,000. Institutional investors own 81.72% of the company’s stock.

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.