Krispy Kreme (NASDAQ:DNUT) Trading Up 4.7% – Should You Buy?

Krispy Kreme, Inc. (NASDAQ:DNUT)’s share price shot up 4.7% on Tuesday . The stock traded as high as $5.67 and last traded at $5.67. 2,089,473 shares traded hands during trading, a decline of 13% from the average session volume of 2,408,707 shares. The stock had previously closed at $5.41.

Analyst Upgrades and Downgrades

Several research firms have weighed in on DNUT. Piper Sandler dropped their price target on 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 lowered their target price for the stock from $12.00 to $6.00 in a research note on Wednesday, February 26th. Finally, Truist Financial restated a “buy” rating and issued a $12.00 target price (down previously from $15.00) on shares of Krispy Kreme in a research note on Wednesday, February 26th. One research analyst has rated the stock with a sell rating, two have given a hold rating, five have issued a buy rating and one has given a strong buy rating to the stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $13.13.

Krispy Kreme Stock Up 0.7 %

The company has a market cap of $960.49 million, a price-to-earnings ratio of 33.18, a PEG ratio of 3.24 and a beta of 1.40. The company has a current ratio of 0.35, a quick ratio of 0.28 and a debt-to-equity ratio of 0.67. The business has a fifty day moving average of $7.87 and a two-hundred day moving average of $9.85.

Krispy Kreme (NASDAQ:DNUT) last released its quarterly earnings results on Tuesday, February 25th. The company reported $0.01 earnings per share for the quarter, missing analysts’ consensus estimates of $0.10 by ($0.09). The business had revenue of $404.00 million during the quarter, compared to analyst estimates of $413.18 million. Krispy Kreme had a return on equity of 0.53% and a net margin of 1.64%. The business’s revenue for the quarter was down 10.4% compared to the same quarter last year. During the same period in the previous year, the company posted $0.09 EPS. As a group, equities analysts anticipate that Krispy Kreme, Inc. will post 0.07 EPS for the current fiscal year.

Krispy Kreme Announces Dividend

The company also recently announced 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. The ex-dividend date of this dividend is Wednesday, April 23rd. This represents a $0.14 dividend on an annualized basis and a dividend yield of 2.48%. Krispy Kreme’s payout ratio is currently 700.00%.

Hedge Funds Weigh In On Krispy Kreme

A number of hedge funds have recently made changes to their positions in DNUT. Connor Clark & Lunn Investment Management Ltd. acquired a new position in shares of Krispy Kreme during the third quarter valued at approximately $810,000. Intech Investment Management LLC purchased a new stake in shares of Krispy Kreme in the third quarter valued at approximately $278,000. Landscape Capital Management L.L.C. grew its position in shares of Krispy Kreme by 86.1% in the third quarter. Landscape Capital Management L.L.C. now owns 216,559 shares of the company’s stock valued at $2,326,000 after purchasing an additional 100,163 shares in the last quarter. Banco Santander S.A. grew its position in shares of Krispy Kreme by 0.3% in the third quarter. Banco Santander S.A. now owns 6,916,972 shares of the company’s stock valued at $74,288,000 after purchasing an additional 21,723 shares in the last quarter. Finally, Dynamic Technology Lab Private Ltd purchased a new stake in shares of Krispy Kreme in the third quarter valued at approximately $291,000. 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.