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

Krispy Kreme, Inc. (NASDAQ:DNUT) shares saw unusually-high trading volume on Monday . Approximately 2,478,732 shares traded hands during mid-day 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.

Analyst Upgrades and Downgrades

Several analysts recently commented on the company. Wall Street Zen cut Krispy Kreme from a “hold” rating to a “sell” rating in a report on Saturday, August 8th. Zacks Research lowered shares of Krispy Kreme from a “hold” rating to a “strong sell” rating in a report on Thursday, August 6th. Evercore set a $4.00 price target on shares of Krispy Kreme in a research report on Friday, August 7th. Finally, Weiss Ratings raised shares of Krispy Kreme from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Wednesday, August 26th. Two research analysts have rated the stock with a Buy rating and three have issued a Sell rating to the company. According to data from MarketBeat.com, Krispy Kreme presently has a consensus rating of “Reduce” and an average target price of $4.33.

Krispy Kreme Price Performance

The stock has a market capitalization of $579.26 million, a P/E ratio of -6.00 and a beta of 1.27. The business has a fifty day simple moving average of $3.36 and a 200-day simple moving average of $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.

Krispy Kreme (NASDAQ:DNUT) last announced its quarterly earnings data 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 company had revenue of $331.00 million during the quarter, compared to the consensus estimate of $303.35 million. During the same quarter last year, the firm posted ($0.15) EPS. The company’s quarterly revenue was down 12.8% on a year-over-year basis. Sell-side analysts expect that Krispy Kreme, Inc. will post -0.07 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, Director Bernardo Hees purchased 25,002 shares of the firm’s stock in a transaction on Friday, June 5th. The stock was purchased at an average cost of $3.49 per share, with a total value of $87,256.98. Following the completion of the purchase, the director owned 1,574,635 shares in the company, valued at approximately $5,495,476.15. This trade represents a 1.61% increase in their position. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Company insiders own 1.60% of the company’s stock.

Hedge Funds Weigh In On Krispy Kreme

Several large investors have recently added to or reduced their stakes in the business. AQR Capital Management LLC purchased a new position in Krispy Kreme during the 1st quarter worth $217,000. Millennium Management LLC grew its holdings in Krispy Kreme by 522.1% during the first quarter. Millennium Management LLC now owns 2,093,416 shares of the company’s stock valued at $10,300,000 after purchasing an additional 1,756,932 shares during the period. Creative Planning raised its stake in shares of Krispy Kreme by 568.2% in the second quarter. Creative Planning now owns 67,074 shares of the company’s stock valued at $195,000 after buying an additional 57,036 shares during the period. Legal & General Group Plc boosted its position in Krispy Kreme by 44.0% during the second quarter. Legal & General Group Plc now owns 137,268 shares of the company’s stock worth $399,000 after purchasing an additional 41,929 shares during the period. Finally, Prudential Financial Inc. purchased a new stake in shares of Krispy Kreme during the 2nd quarter valued at approximately $32,000. 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.