Krispy Kreme Sees Unusually Large Options Volume (NASDAQ:DNUT)

Krispy Kreme, Inc. (NASDAQ:DNUT) saw unusually large options trading activity on Friday. Traders acquired 6,231 call options on the stock. This represents an increase of 158% compared to the average volume of 2,417 call options.

Insiders Place Their Bets

In related news, Director Bernardo Hees bought 25,002 shares of the company’s stock in a transaction on Friday, June 5th. The stock was acquired at an average cost of $3.49 per share, for a total transaction of $87,256.98. Following the completion of the transaction, the director directly owned 1,574,635 shares in the company, valued at $5,495,476.15. This trade represents a 1.61% increase in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Insiders have purchased 880,190 shares of company stock valued at $2,973,833 over the last quarter. Company insiders own 1.60% of the company’s stock.

Institutional Investors Weigh In On Krispy Kreme

Several institutional investors and hedge funds have recently bought and sold shares of DNUT. Divisadero Street Capital Management LP lifted its stake in Krispy Kreme by 117.9% in the third quarter. Divisadero Street Capital Management LP now owns 1,089,341 shares of the company’s stock worth $4,216,000 after acquiring an additional 589,341 shares during the period. Trustees of the University of Pennsylvania purchased a new position in Krispy Kreme during the 4th quarter valued at $8,077,000. Ground Swell Capital LLC bought a new position in Krispy Kreme in the 4th quarter worth $67,000. FNY Investment Advisers LLC bought a new position in Krispy Kreme in the 4th quarter worth $40,000. Finally, Counterpoint Mutual Funds LLC lifted its position in shares of Krispy Kreme by 111.1% in the 3rd quarter. Counterpoint Mutual Funds LLC now owns 241,459 shares of the company’s stock worth $934,000 after purchasing an additional 127,068 shares during the period. Hedge funds and other institutional investors own 81.72% of the company’s stock.

Krispy Kreme Trading Up 2.6%

DNUT stock traded up $0.11 during trading on Friday, hitting $4.31. 5,963,521 shares of the company traded hands, compared to its average volume of 2,429,418. The company has a 50-day moving average of $3.54 and a 200-day moving average of $3.64. The company has a debt-to-equity ratio of 1.31, a quick ratio of 0.36 and a current ratio of 0.42. Krispy Kreme has a 1 year low of $2.50 and a 1 year high of $5.73. The firm has a market capitalization of $743.04 million, a PE ratio of -1.44 and a beta of 1.27.

Krispy Kreme (NASDAQ:DNUT) last released 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). Krispy Kreme had a negative net margin of 33.36% and a negative return on equity of 4.34%. The company had revenue of $367.03 million for the quarter, compared to analysts’ expectations of $359.42 million. During the same period last year, the company posted ($0.05) EPS. The business’s revenue for the quarter was down 2.2% compared to the same quarter last year. Analysts predict that Krispy Kreme will post -0.07 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

Several brokerages recently issued reports on DNUT. Weiss Ratings reiterated a “sell (d)” rating on shares of Krispy Kreme in a research report on Friday, March 27th. Wall Street Zen raised 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 objective on the stock in a research report on Thursday, March 26th. Finally, Zacks Research downgraded Krispy Kreme from a “strong-buy” rating to a “hold” rating in a research report on Friday, May 15th. Three research analysts have rated the stock with a Buy rating, two have issued a Hold rating and three have given a Sell rating to the company. Based on data from MarketBeat, Krispy Kreme currently has a consensus rating of “Hold” and an average target price of $4.63.

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.