Krispy Kreme (NASDAQ:DNUT) Sees Unusually-High Trading Volume – Still a Buy?

Krispy Kreme, Inc. (NASDAQ:DNUT) shares saw strong trading volume on Friday . 2,696,440 shares were traded during trading, an increase of 12% from the previous session’s volume of 2,412,034 shares.The stock last traded at $4.4750 and had previously closed at $4.20.

Analysts Set New Price Targets

A number of research analysts have commented on the company. Zacks Research cut Krispy Kreme from a “strong-buy” rating to a “hold” rating in a research note on Friday, May 15th. Wall Street Zen upgraded Krispy Kreme from a “sell” rating to a “hold” rating in a research note on Sunday, May 17th. Capital One Financial upgraded Krispy Kreme from an “equal weight” rating to an “overweight” rating and set a $6.00 price target on the stock in a research note on Thursday, March 26th. Finally, Weiss Ratings restated a “sell (d)” rating on shares of Krispy Kreme in a research note on Friday, March 27th. Three research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and three have issued a Sell rating to the company’s stock. According to MarketBeat, the stock has a consensus rating of “Hold” and a consensus target price of $4.63.

Krispy Kreme Stock Up 2.6%

The business has a 50-day moving average price of $3.54 and a two-hundred day moving average price of $3.64. The company has a quick ratio of 0.36, a current ratio of 0.42 and a debt-to-equity ratio of 1.31. The firm has a market cap of $743.04 million, a PE ratio of -1.44 and a beta of 1.27.

Krispy Kreme (NASDAQ:DNUT) last posted its quarterly earnings data on Thursday, May 7th. The company reported ($0.05) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.03) by ($0.02). The company had revenue of $367.03 million for the quarter, compared to analysts’ expectations of $359.42 million. Krispy Kreme had a negative return on equity of 4.34% and a negative net margin of 33.36%.The firm’s revenue was down 2.2% compared to the same quarter last year. During the same period in the prior year, the company posted ($0.05) EPS. On average, equities research analysts expect that Krispy Kreme, Inc. will post -0.07 EPS for the current year.

Insider Buying and Selling

In other Krispy Kreme news, Director Bernardo Hees bought 235,875 shares of the company’s stock in a transaction that occurred on Tuesday, June 2nd. The shares were purchased at an average price of $3.39 per share, with a total value of $799,616.25. Following the completion of the acquisition, the director directly owned 1,229,037 shares of the company’s stock, valued at $4,166,435.43. This represents a 23.75% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Insiders acquired a total of 880,190 shares of company stock valued at $2,973,833 over the last 90 days. Corporate insiders own 1.60% of the company’s stock.

Hedge Funds Weigh In On Krispy Kreme

Several large investors have recently bought and sold shares of DNUT. Prudential Financial Inc. acquired a new position in Krispy Kreme in the second quarter valued at $32,000. Russell Investments Group Ltd. boosted its stake 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 valued at $33,000 after acquiring an additional 7,832 shares in the last quarter. Captrust Financial Advisors acquired a new position in Krispy Kreme in the second quarter valued at $34,000. Apollon Wealth Management LLC acquired a new position in Krispy Kreme in the first quarter valued at $35,000. Finally, Raymond James Financial Inc. acquired a new position in Krispy Kreme in the second quarter valued at $37,000. Hedge funds and other institutional investors own 81.72% of the company’s stock.

Krispy Kreme Company Profile

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.