Krispy Kreme (NASDAQ:DNUT) Sees Strong Trading Volume – Here’s Why

Shares of Krispy Kreme, Inc. (NASDAQ:DNUT) saw strong trading volume on Monday . 2,478,732 shares were traded during trading, a decline of 4% from the previous session’s volume of 2,569,085 shares.The stock last traded at $3.4350 and had previously closed at $3.47.

Wall Street Analyst Weigh In

DNUT has been the subject of several research reports. Weiss Ratings raised Krispy Kreme from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Wednesday. Evercore set a $4.00 price target on Krispy Kreme in a research report on Friday, August 7th. Zacks Research cut Krispy Kreme from a “hold” rating to a “strong sell” rating in a research note on Thursday, August 6th. Finally, Wall Street Zen downgraded Krispy Kreme from a “hold” rating to a “sell” rating in a report on Saturday, August 8th. Two equities research analysts have rated the stock with a Buy rating and three have given a Sell rating to the company. According to MarketBeat, the stock has an average rating of “Reduce” and a consensus target price of $4.33.

Krispy Kreme Stock Down 2.0%

The business’s 50 day moving average is $3.36 and its 200 day moving average is $3.43. The company has a debt-to-equity ratio of 1.28, a quick ratio of 0.29 and a current ratio of 0.36. The stock has a market cap of $586.16 million, a price-to-earnings ratio of -6.07 and a beta of 1.27.

Krispy Kreme (NASDAQ:DNUT) last posted its quarterly earnings data on Thursday, August 6th. The company reported ($0.03) earnings per share for the quarter, hitting the consensus estimate of ($0.03). Krispy Kreme had a negative net margin of 6.16% and a negative return on equity of 1.17%. The firm had revenue of $331.00 million for the quarter, compared to analysts’ expectations of $303.35 million. During the same period in the previous year, the company posted ($0.15) EPS. The company’s quarterly revenue was down 12.8% compared to the same quarter last year. Equities analysts expect that Krispy Kreme, Inc. will post -0.07 earnings per share for the current year.

Insider Buying and Selling at Krispy Kreme

In other Krispy Kreme news, Director Bernardo Hees purchased 235,875 shares of the company’s stock in a transaction that occurred on Tuesday, June 2nd. The shares were purchased at an average cost of $3.39 per share, with a total value of $799,616.25. Following the completion of the transaction, the director owned 1,229,037 shares of the company’s stock, valued at approximately $4,166,435.43. This represents a 23.75% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through this link. Insiders acquired a total of 581,473 shares of company stock worth $1,951,870 in the last quarter. Insiders own 1.60% of the company’s stock.

Institutional Trading of Krispy Kreme

A number of hedge funds have recently made changes to their positions in DNUT. Carlyle Group Inc. purchased a new stake in Krispy Kreme in the 2nd quarter worth approximately $1,203,000. AlpInvest Partners B.V. purchased a new position in shares of Krispy Kreme during the 2nd quarter valued at $2,231,000. Lazard Asset Management LLC purchased a new position in shares of Krispy Kreme during the 1st quarter valued at $1,883,000. Hsbc Holdings PLC acquired a new position in shares of Krispy Kreme in the second quarter worth $24,992,000. Finally, Trustees of the University of Pennsylvania acquired a new position in shares of Krispy Kreme in the fourth quarter worth $8,077,000. 81.72% of the stock is owned by hedge funds and other institutional investors.

About Krispy Kreme

Krispy Kreme Doughnuts, Inc (NASDAQ: DNUT) is a global retailer and wholesaler renowned for its signature Original Glazed doughnut and a variety of other sweet treats. The company operates through a combination of company-owned stores, franchise outlets and strategic partnerships with supermarkets, convenience stores and other foodservice channels. In addition to its doughnut portfolio, Krispy Kreme offers freshly brewed coffee, assorted beverages and proprietary seasonal items designed to drive traffic and foster brand loyalty.

Founded in 1937 in Winston-Salem, North Carolina, by Vernon Rudolph, Krispy Kreme has grown from a single local shop to a multinational brand.