Krispy Kreme (NASDAQ:DNUT) Shares Up 7.6% – Still a Buy?

Krispy Kreme, Inc. (NASDAQ:DNUT)’s stock price rose 7.6% on Tuesday . The company traded as high as $3.84 and last traded at $3.9050. Approximately 576,032 shares changed hands during mid-day trading, a decline of 91% from the average daily volume of 6,126,014 shares. The stock had previously closed at $3.63.

Wall Street Analyst Weigh In

DNUT has been the subject of several recent analyst reports. JPMorgan Chase & Co. restated an “underweight” rating on shares of Krispy Kreme in a research note on Wednesday, August 27th. Zacks Research cut Krispy Kreme from a “hold” rating to a “strong sell” rating in a report on Monday, August 25th. Capital One Financial dropped their price objective on Krispy Kreme from $6.00 to $4.00 and set an “equal weight” rating for the company in a research report on Thursday, October 2nd. Singular Research upgraded shares of Krispy Kreme to a “moderate buy” rating in a report on Wednesday, October 22nd. Finally, Weiss Ratings reiterated a “sell (e+)” rating on shares of Krispy Kreme in a report on Wednesday, November 5th. Four analysts have rated the stock with a Buy rating, five have issued a Hold rating and three have issued a Sell rating to the company. According to MarketBeat.com, the company has an average rating of “Hold” and an average target price of $5.51.

Krispy Kreme Price Performance

The company has a debt-to-equity ratio of 1.31, a current ratio of 0.36 and a quick ratio of 0.30. The company has a market cap of $672.35 million, a price-to-earnings ratio of -1.31 and a beta of 1.33. The company’s 50-day simple moving average is $3.66 and its 200-day simple moving average is $3.38.

Krispy Kreme (NASDAQ:DNUT) last released its earnings results on Thursday, November 6th. The company reported $0.01 earnings per share for the quarter, beating the consensus estimate of ($0.06) by $0.07. The firm had revenue of $375.30 million during the quarter, compared to analyst estimates of $378.29 million. Krispy Kreme had a negative net margin of 33.27% and a negative return on equity of 5.13%. The firm’s revenue for the quarter was down 1.2% compared to the same quarter last year. During the same quarter in the previous year, the firm earned ($0.01) earnings per share. On average, equities research analysts anticipate that Krispy Kreme, Inc. will post 0.07 EPS for the current year.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in DNUT. Russell Investments Group Ltd. lifted its position in Krispy Kreme by 1,229.5% in the third quarter. Russell Investments Group Ltd. now owns 8,469 shares of the company’s stock worth $33,000 after purchasing an additional 7,832 shares during the period. Capstone Financial Advisors Inc. acquired a new position in shares of Krispy Kreme in the 2nd quarter worth approximately $29,000. Sage Mountain Advisors LLC bought a new stake in shares of Krispy Kreme in the 3rd quarter worth approximately $39,000. Vanguard Personalized Indexing Management LLC purchased a new stake in shares of Krispy Kreme during the second quarter valued at $30,000. Finally, Malaga Cove Capital LLC purchased a new stake in Krispy Kreme during the first quarter valued at about $51,000. Institutional investors and hedge funds own 81.72% of the company’s stock.

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.