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

Shares of Krispy Kreme, Inc. (NASDAQ:DNUT) hit a new 52-week low during trading on Thursday . The company traded as low as $4.63 and last traded at $4.67, with a volume of 673206 shares trading hands. The stock had previously closed at $4.95.

Analyst Ratings Changes

A number of analysts recently weighed in on DNUT shares. Morgan Stanley cut shares of Krispy Kreme from an “equal weight” rating to an “underweight” rating and decreased their price target for the stock from $12.00 to $6.00 in a research report on Wednesday, February 26th. Piper Sandler reduced their price target on Krispy Kreme from $18.00 to $12.00 and set an “overweight” rating on the stock in a research report on Wednesday, February 26th. Finally, 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. One equities research analyst has rated the stock with a sell rating, one has issued a hold rating, five have issued a buy rating and one has given a strong buy rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average target price of $12.29.

Krispy Kreme Trading Down 7.6 %

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 company has a market cap of $779.12 million, a price-to-earnings ratio of 27.15, a price-to-earnings-growth ratio of 3.24 and a beta of 1.40. The firm has a 50-day moving average price of $7.15 and a 200 day moving average price of $9.41.

Krispy Kreme (NASDAQ:DNUT) last released its quarterly earnings data on Tuesday, February 25th. The company reported $0.01 EPS 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 prior year, the firm earned $0.09 EPS. As a group, sell-side analysts forecast that Krispy Kreme, Inc. will post 0.07 EPS for the current year.

Krispy Kreme Dividend Announcement

The firm 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 $0.035 dividend. The ex-dividend date is Wednesday, April 23rd. This represents a $0.14 dividend on an annualized basis and a yield of 3.06%. Krispy Kreme’s dividend payout ratio is currently 700.00%.

Hedge Funds Weigh In On Krispy Kreme

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. Stifel Financial Corp lifted its holdings in shares of Krispy Kreme by 2.5% in the 3rd quarter. Stifel Financial Corp now owns 38,658 shares of the company’s stock worth $415,000 after purchasing an additional 958 shares during the last quarter. Handelsbanken Fonder AB lifted its stake in Krispy Kreme by 4.4% in the fourth quarter. Handelsbanken Fonder AB now owns 30,800 shares of the company’s stock valued at $306,000 after buying an additional 1,300 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its holdings in shares of Krispy Kreme by 3.6% during the fourth quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 48,683 shares of the company’s stock valued at $483,000 after acquiring an additional 1,707 shares during the period. Swiss National Bank grew its position in shares of Krispy Kreme by 1.3% during the fourth quarter. Swiss National Bank now owns 166,800 shares of the company’s stock worth $1,656,000 after acquiring an additional 2,100 shares during the last quarter. Finally, Rhumbline Advisers increased its holdings in shares of Krispy Kreme by 2.2% in the 4th quarter. Rhumbline Advisers now owns 119,083 shares of the company’s stock worth $1,182,000 after acquiring an additional 2,532 shares during the period. 81.72% of the stock is currently owned by institutional investors and hedge funds.

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.