Short Interest in Krispy Kreme, Inc. (NASDAQ:DNUT) Rises By 10.2%

Krispy Kreme, Inc. (NASDAQ:DNUT) was the recipient of a significant increase in short interest in the month of August. As of August 31st, there was short interest totalling 19,600,000 shares, an increase of 10.2% from the August 15th total of 17,790,000 shares. Based on an average daily trading volume, of 1,910,000 shares, the short-interest ratio is currently 10.3 days. Approximately 23.8% of the company’s shares are sold short.

Krispy Kreme Price Performance

Shares of DNUT stock traded down $0.20 on Wednesday, hitting $12.20. 1,080,310 shares of the stock traded hands, compared to its average volume of 2,185,991. The firm has a market cap of $2.06 billion, a price-to-earnings ratio of -45.19, a PEG ratio of 3.42 and a beta of 1.41. The company has a debt-to-equity ratio of 0.73, a current ratio of 0.34 and a quick ratio of 0.26. The firm has a 50 day simple moving average of $10.88 and a two-hundred day simple moving average of $11.83. Krispy Kreme has a 52 week low of $9.18 and a 52 week high of $17.84.

Krispy Kreme (NASDAQ:DNUT) last released its quarterly earnings data on Thursday, August 8th. The company reported $0.05 earnings per share for the quarter, hitting analysts’ consensus estimates of $0.05. Krispy Kreme had a positive return on equity of 1.12% and a negative net margin of 2.98%. The firm had revenue of $438.80 million during the quarter, compared to analyst estimates of $435.43 million. During the same quarter in the prior year, the company posted $0.04 earnings per share. The business’s quarterly revenue was up 7.3% compared to the same quarter last year. As a group, equities research analysts predict that Krispy Kreme will post 0.13 earnings per share for the current fiscal year.

Krispy Kreme Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, November 6th. Investors of record on Wednesday, October 23rd will be given a $0.035 dividend. This represents a $0.14 annualized dividend and a yield of 1.15%. The ex-dividend date of this dividend is Wednesday, October 23rd. Krispy Kreme’s dividend payout ratio is presently -51.85%.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the business. Victory Capital Management Inc. bought a new position in Krispy Kreme in the 4th quarter worth about $157,000. Natixis Advisors L.P. lifted its stake in shares of Krispy Kreme by 4.9% during the fourth quarter. Natixis Advisors L.P. now owns 25,248 shares of the company’s stock worth $380,000 after buying an additional 1,181 shares during the period. Charles Schwab Investment Management Inc. raised its stake in Krispy Kreme by 1.2% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 665,957 shares of the company’s stock worth $10,049,000 after acquiring an additional 7,745 shares during the last quarter. Dimensional Fund Advisors LP lifted its position in Krispy Kreme by 25.4% during the 4th quarter. Dimensional Fund Advisors LP now owns 2,317,443 shares of the company’s stock worth $34,971,000 after acquiring an additional 469,379 shares during the period. Finally, Hsbc Holdings PLC grew its stake in Krispy Kreme by 157.1% during the 4th quarter. Hsbc Holdings PLC now owns 6,978,000 shares of the company’s stock valued at $106,130,000 after purchasing an additional 4,263,574 shares during the last quarter. Institutional investors own 81.72% of the company’s stock.

Analyst Upgrades and Downgrades

Several equities research analysts have weighed in on DNUT shares. Bank of America dropped their price target on shares of Krispy Kreme from $19.00 to $16.00 and set a “buy” rating for the company in a research report on Wednesday, July 17th. JPMorgan Chase & Co. initiated coverage on Krispy Kreme in a report on Monday, June 3rd. They set an “overweight” rating and a $14.00 price target on the stock. HSBC upgraded Krispy Kreme from a “hold” rating to a “buy” rating and set a $14.00 price objective for the company in a report on Tuesday, July 23rd. Evercore ISI restated an “in-line” rating and set a $13.00 target price on shares of Krispy Kreme in a report on Tuesday, August 27th. Finally, Truist Financial upgraded shares of Krispy Kreme from a “hold” rating to a “buy” rating and lifted their price target for the company from $13.00 to $15.00 in a report on Monday, June 10th. Three investment analysts have rated the stock with a hold rating, five have assigned a buy rating and one has given a strong buy rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $15.88.

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.