Krispy Kreme (NASDAQ:DNUT) Shares Gap Down – What’s Next?

Krispy Kreme, Inc. (NASDAQ:DNUT)’s stock price gapped down before the market opened on Thursday . The stock had previously closed at $12.42, but opened at $11.22. Krispy Kreme shares last traded at $11.24, with a volume of 1,060,646 shares trading hands.

Wall Street Analyst Weigh In

DNUT has been the topic of a number of analyst reports. Hsbc Global Res upgraded Krispy Kreme from a “hold” rating to a “strong-buy” rating in a research 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 research report on Tuesday, August 27th. Bank of America raised their target price on Krispy Kreme from $15.00 to $16.00 and gave the company a “buy” rating in a research report on Tuesday, October 22nd. Morgan Stanley began coverage on Krispy Kreme in a report on Tuesday. They issued an “equal weight” rating and a $14.00 price objective on the stock. Finally, HSBC upgraded Krispy Kreme from a “hold” rating to a “buy” rating and set a $14.00 price objective on the stock in a report on Tuesday, July 23rd. Four investment analysts have rated the stock with a hold rating, five have issued a buy rating and one has assigned a strong buy rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $15.67.

Krispy Kreme Price Performance

The company has a debt-to-equity ratio of 0.73, a quick ratio of 0.26 and a current ratio of 0.34. The stock’s 50 day simple moving average is $11.40 and its two-hundred day simple moving average is $11.26. The firm has a market capitalization of $2.03 billion, a PE ratio of -39.33, a price-to-earnings-growth ratio of 2.98 and a beta of 1.39.

Krispy Kreme (NASDAQ:DNUT) last released its earnings results 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 negative net margin of 2.98% and a positive return on equity of 1.12%. The business had revenue of $438.80 million for the quarter, compared to analyst estimates of $435.43 million. During the same period last year, the company posted $0.04 EPS. The business’s revenue was up 7.3% on a year-over-year basis. On average, sell-side analysts forecast that Krispy Kreme, Inc. will post 0.13 EPS for the current year.

Krispy Kreme Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, November 6th. Shareholders of record on Wednesday, October 23rd were paid a $0.035 dividend. This represents a $0.14 dividend on an annualized basis and a yield of 1.17%. The ex-dividend date of this dividend was Wednesday, October 23rd. Krispy Kreme’s dividend payout ratio (DPR) is -46.67%.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the business. Blue Trust Inc. purchased a new stake in shares of Krispy Kreme during the 2nd quarter valued at approximately $68,000. nVerses Capital LLC purchased a new stake in shares of Krispy Kreme during the 3rd quarter valued at approximately $124,000. Tidal Investments LLC purchased a new stake in shares of Krispy Kreme during the 1st quarter valued at approximately $154,000. American Century Companies Inc. purchased a new stake in shares of Krispy Kreme during the 2nd quarter valued at approximately $185,000. Finally, Sei Investments Co. purchased a new stake in shares of Krispy Kreme during the 2nd quarter valued at approximately $198,000. 81.72% of the stock is owned by hedge funds and other institutional investors.

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.