Krispy Kreme (NASDAQ:DNUT) Hits New 1-Year Low – Should You Sell?

Krispy Kreme, Inc. (NASDAQ:DNUT)’s share price reached a new 52-week low during mid-day trading on Tuesday . The stock traded as low as $5.76 and last traded at $5.70, with a volume of 699669 shares traded. The stock had previously closed at $5.90.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently commented on DNUT shares. Truist Financial reaffirmed a “buy” rating and issued a $12.00 price objective (down from $15.00) on shares of Krispy Kreme in a research note on Wednesday, February 26th. Piper Sandler decreased their price target on Krispy Kreme from $18.00 to $12.00 and set an “overweight” rating for the company in a report on Wednesday, February 26th. Morgan Stanley lowered Krispy Kreme from an “equal weight” rating to an “underweight” rating and cut their target price for the company from $12.00 to $6.00 in a research report on Wednesday, February 26th. Finally, JPMorgan Chase & Co. lowered their target price on Krispy Kreme from $14.00 to $13.00 and set an “overweight” rating for the company in a report on Tuesday, November 12th. One investment analyst has rated the stock with a sell rating, two have assigned a hold rating, five have given a buy rating and one has issued a strong buy rating to the company’s stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $13.13.

Krispy Kreme Trading Down 8.9 %

The business has a 50 day moving average of $8.47 and a two-hundred day moving average of $10.11. The company has a debt-to-equity ratio of 0.67, a quick ratio of 0.28 and a current ratio of 0.35. The firm has a market capitalization of $915.36 million, a price-to-earnings ratio of 31.79, a P/E/G ratio of 3.24 and a beta of 1.41.

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

Krispy Kreme Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, May 7th. Investors 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 2.60%. The ex-dividend date is Wednesday, April 23rd. Krispy Kreme’s dividend payout ratio (DPR) is presently 700.00%.

Institutional Investors Weigh In On Krispy Kreme

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Landscape Capital Management L.L.C. increased its position in shares of Krispy Kreme by 86.1% during 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 acquiring an additional 100,163 shares during the last quarter. Paloma Partners Management Co grew its stake in Krispy Kreme by 6,993.4% in the 3rd quarter. Paloma Partners Management Co now owns 872,068 shares of the company’s stock valued at $9,366,000 after purchasing an additional 859,774 shares during the period. Rhumbline Advisers raised its stake in shares of Krispy Kreme by 2.2% during the 4th quarter. Rhumbline Advisers now owns 119,083 shares of the company’s stock worth $1,182,000 after purchasing an additional 2,532 shares during the period. Connor Clark & Lunn Investment Management Ltd. purchased a new position in shares of Krispy Kreme in the 3rd quarter worth about $810,000. Finally, Holocene Advisors LP bought a new position in Krispy Kreme during the third quarter valued at about $1,716,000. 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.