Krispy Kreme (NASDAQ:DNUT) Hits New 52-Week Low – Should You Sell?

Krispy Kreme, Inc. (NASDAQ:DNUT) shares hit a new 52-week low on Friday. The company traded as low as $2.81 and last traded at $2.82, with a volume of 3,979,786 shares trading hands. The stock had previously closed at $2.95.

Analyst Ratings Changes

A number of equities research analysts have commented on DNUT shares. Evercore set a $4.00 target price on shares of Krispy Kreme in a research report on Friday, August 7th. Zacks Research cut shares of Krispy Kreme from a “hold” rating to a “strong sell” rating in a research note on Thursday, August 6th. Wall Street Zen lowered Krispy Kreme from a “hold” rating to a “sell” rating in a research note on Saturday, August 8th. Finally, Weiss Ratings cut Krispy Kreme from a “sell (d-)” rating to a “sell (e+)” rating in a report on Friday, October 16th. One investment analyst has rated the stock with a Buy rating and three have given a Sell rating to the stock. According to data from MarketBeat.com, Krispy Kreme currently has an average rating of “Reduce” and an average price target of $4.33.

Krispy Kreme Stock Performance

The company has a debt-to-equity ratio of 1.28, a current ratio of 0.36 and a quick ratio of 0.29. The stock’s fifty day moving average is $3.16 and its two-hundred day moving average is $3.36.

Krispy Kreme (NASDAQ:DNUT) last issued its quarterly earnings results on Thursday, August 6th. The company reported ($0.03) EPS 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 business earned ($0.15) earnings per share. Krispy Kreme’s revenue for the quarter was down 12.8% compared to the same quarter last year. As a group, research analysts forecast that Krispy Kreme, Inc. will post -0.06 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Krispy Kreme

Several large investors have recently made changes to their positions in DNUT. Hsbc Holdings PLC bought a new position in Krispy Kreme during the second quarter valued at about $24,992,000. BlackRock Inc. acquired a new stake in shares of Krispy Kreme in the 2nd quarter valued at approximately $23,353,000. AlpInvest Partners B.V. bought a new position in Krispy Kreme during the second quarter worth about $2,231,000. Squarepoint Ops LLC grew its position in shares of Krispy Kreme by 138.5% in the 2nd quarter. Squarepoint Ops LLC now owns 566,309 shares of the company’s stock valued at $1,999,000 after purchasing an additional 328,885 shares during the period. Finally, Lazard Asset Management LLC acquired a new stake in shares of Krispy Kreme during the first quarter worth $1,883,000. Institutional investors and hedge funds own 81.72% of the company’s stock.

Krispy Kreme Company Profile

Krispy Kreme, Inc is a global doughnut and coffee company best known for its Original Glazed doughnuts. The company sells doughnuts, packaged sweets, coffee and other beverages through Krispy Kreme shops, in-store retail displays and digital ordering channels.

Krispy Kreme operates a hub-and-spoke distribution model that combines doughnut-making hubs and shops with delivery to grocery stores, convenience stores and other retail locations. Its products are also distributed through partnerships and branded locations, allowing the company to expand its reach beyond traditional Krispy Kreme shops.

Founded in 1937 in Winston-Salem, North Carolina, by Vernon Rudolph, Krispy Kreme has grown into an international brand serving customers in the United States and various markets across North America, Europe, Asia and Oceania.