Krispy Kreme (NASDAQ:DNUT) Sees Unusually-High Trading Volume Following Better-Than-Expected Earnings

Krispy Kreme, Inc. (NASDAQ:DNUT) shares saw an uptick in trading volume on Thursday after the company announced better than expected quarterly earnings. 2,866,096 shares were traded during trading, an increase of 13% from the average daily volume of 2,542,971 shares. The stock last traded at $4.4160 and had previously closed at $3.52.

The company reported $0.06 earnings per share for the quarter, beating analysts’ consensus estimates of $0.01 by $0.05. Krispy Kreme had a negative net margin of 6.16% and a negative return on equity of 1.17%. The business’s revenue was down 12.4% on a year-over-year basis. During the same period last year, the company earned $0.01 EPS.

Trending Headlines about Krispy Kreme

Here are the key news stories impacting Krispy Kreme this week:

• Positive Sentiment: Krispy Kreme reported third-quarter EPS of $0.06, above analyst estimates of roughly $0.01–$0.02 and up from $0.01 a year earlier. Revenue also exceeded estimates. Krispy Kreme surpasses Q3 earnings and revenue estimates
• Positive Sentiment: The company raised its revenue guidance, saying progress on its turnaround is continuing. The improved outlook may have bolstered investor confidence. Krispy Kreme raises revenue outlook as turnaround takes hold
• Negative Sentiment: Revenue was down 12.4% from a year earlier, and the company continued to report a negative net margin. The sales contraction and ongoing losses remain risks despite the earnings beat. Krispy Kreme third-quarter results

Wall Street Analyst Weigh In

A number of equities research analysts recently commented on DNUT shares. Evercore set a $4.00 price objective on shares of Krispy Kreme in a report on Friday, August 7th. Zacks Research raised shares of Krispy Kreme from a “strong sell” rating to a “hold” rating in a research note on Tuesday, October 27th. Weiss Ratings cut Krispy Kreme from a “sell (d-)” rating to a “sell (e+)” rating in a report on Friday, October 16th. Finally, Wall Street Zen downgraded Krispy Kreme from a “hold” rating to a “sell” rating in a research note on Saturday, August 8th. One analyst has rated the stock with a Buy rating, one has issued a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, Krispy Kreme has a consensus rating of “Reduce” and a consensus target price of $4.33.

Institutional Investors Weigh In On Krispy Kreme

Several institutional investors have recently bought and sold shares of the company. Hsbc Holdings PLC bought a new position in shares of Krispy Kreme during the 2nd quarter worth approximately $24,992,000. BlackRock Inc. acquired a new stake in shares of Krispy Kreme in the second quarter valued at approximately $23,353,000. AlpInvest Partners B.V. bought a new stake in shares of Krispy Kreme in the second quarter worth $2,231,000. Lazard Asset Management LLC bought a new stake in shares of Krispy Kreme in the first quarter worth $1,883,000. Finally, Carlyle Group Inc. bought a new stake in shares of Krispy Kreme in the second quarter worth $1,203,000. Institutional investors own 81.72% of the company’s stock.

Krispy Kreme Price Performance

The company’s fifty day moving average is $3.11 and its 200 day moving average is $3.34. The firm has a market cap of $796.32 million, a price-to-earnings ratio of -8.15 and a beta of 1.29. The company has a quick ratio of 0.29, a current ratio of 0.36 and a debt-to-equity ratio of 1.28.

About Krispy Kreme

Krispy Kreme, Inc is a global doughnut and coffee company best known for its Original Glazed doughnuts. The company sells doughnuts, packaged sweets, coffee and other beverages through Krispy Kreme shops, in-store retail displays and digital ordering channels.

Krispy Kreme operates a hub-and-spoke distribution model that combines doughnut-making hubs and shops with delivery to grocery stores, convenience stores and other retail locations. Its products are also distributed through partnerships and branded locations, allowing the company to expand its reach beyond traditional Krispy Kreme shops.

Founded in 1937 in Winston-Salem, North Carolina, by Vernon Rudolph, Krispy Kreme has grown into an international brand serving customers in the United States and various markets across North America, Europe, Asia and Oceania.