Krispy Kreme (NASDAQ:DNUT) Shares Down 6.1% – Should You Sell?

Krispy Kreme, Inc. (NASDAQ:DNUT)’s stock price traded down 6.1% during trading on Monday . The stock traded as low as $4.05 and last traded at $4.0450. 859,279 shares traded hands during trading, a decline of 65% from the average session volume of 2,427,486 shares. The stock had previously closed at $4.31.

Analysts Set New Price Targets

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

Krispy Kreme Stock Performance

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 stock has a market cap of $687.01 million, a price-to-earnings ratio of -1.33 and a beta of 1.27. The company’s 50-day simple moving average is $3.54 and its 200-day simple moving average is $3.64.

Krispy Kreme (NASDAQ:DNUT) last posted its quarterly earnings results on Thursday, May 7th. The company reported ($0.05) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.03) by ($0.02). The business had revenue of $367.03 million during the quarter, compared to analyst estimates of $359.42 million. Krispy Kreme had a negative return on equity of 4.34% and a negative net margin of 33.36%.The company’s quarterly revenue was down 2.2% compared to the same quarter last year. During the same quarter last year, the firm posted ($0.05) EPS. Analysts predict that Krispy Kreme, Inc. will post -0.07 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, Director Bernardo Hees acquired 235,875 shares of the stock in a transaction on Tuesday, June 2nd. The shares were purchased at an average cost of $3.39 per share, for a total transaction of $799,616.25. Following the transaction, the director owned 1,229,037 shares in the company, valued at approximately $4,166,435.43. This trade represents a 23.75% increase in their position. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. In the last 90 days, insiders have purchased 880,190 shares of company stock worth $2,973,833. Insiders own 1.60% of the company’s stock.

Hedge Funds Weigh In On Krispy Kreme

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Russell Investments Group Ltd. grew its position in Krispy Kreme by 1,229.5% during the 3rd quarter. Russell Investments Group Ltd. now owns 8,469 shares of the company’s stock worth $33,000 after purchasing an additional 7,832 shares in the last quarter. FNY Investment Advisers LLC purchased a new position in Krispy Kreme during the 4th quarter worth approximately $40,000. Apollon Wealth Management LLC purchased a new position in Krispy Kreme during the 1st quarter worth approximately $35,000. Prudential Financial Inc. purchased a new position in Krispy Kreme during the 2nd quarter worth approximately $32,000. Finally, Captrust Financial Advisors purchased a new position in Krispy Kreme during the 2nd quarter worth approximately $34,000. 81.72% of the stock is currently owned by hedge funds and other institutional investors.

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.