Zacks Research Downgrades Krispy Kreme (NASDAQ:DNUT) to Strong Sell

Krispy Kreme (NASDAQ:DNUT) was downgraded by investment analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a note issued to investors on Thursday,Zacks.com reports.

A number of other research firms have also commented on DNUT. Evercore set a $4.00 target price on shares of Krispy Kreme in a report on Friday. Weiss Ratings reissued a “sell (d)” rating on shares of Krispy Kreme in a research note on Wednesday, June 24th. Finally, Wall Street Zen lowered Krispy Kreme from a “hold” rating to a “sell” rating in a research report on Saturday. Two investment analysts have rated the stock with a Buy rating and four have given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company has an average rating of “Reduce” and a consensus target price of $4.33.

Krispy Kreme Stock Up 3.4%

Shares of NASDAQ DNUT opened at $3.34 on Thursday. Krispy Kreme has a 1 year low of $2.88 and a 1 year high of $5.11. The firm’s 50-day moving average is $3.46 and its 200-day moving average is $3.41. The company has a current ratio of 0.42, a quick ratio of 0.36 and a debt-to-equity ratio of 1.31. The firm has a market capitalization of $575.82 million, a PE ratio of -5.96 and a beta of 1.27.

Krispy Kreme (NASDAQ:DNUT) last posted its quarterly earnings results on Thursday, August 6th. The company reported ($0.03) earnings per share for the quarter, hitting analysts’ consensus estimates of ($0.03). The business had revenue of $331.00 million during the quarter, compared to the consensus estimate of $303.35 million. Krispy Kreme had a negative net margin of 6.16% and a negative return on equity of 1.15%. Krispy Kreme’s revenue for the quarter was down 12.8% compared to the same quarter last year. During the same period in the previous year, the firm posted ($0.15) earnings per share. Equities analysts expect that Krispy Kreme will post -0.07 EPS for the current year.

Insider Transactions at Krispy Kreme

In related news, Director Bernardo Hees bought 25,002 shares of the business’s stock in a transaction dated Friday, June 5th. The stock was bought at an average price of $3.49 per share, for a total transaction of $87,256.98. Following the purchase, the director owned 1,574,635 shares in the company, valued at $5,495,476.15. This represents a 1.61% increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Over the last three months, insiders acquired 880,190 shares of company stock worth $2,973,833. Company insiders own 1.60% of the company’s stock.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of the stock. Prudential Financial Inc. bought a new stake in Krispy Kreme during the second quarter worth $32,000. Russell Investments Group Ltd. increased its stake in shares of Krispy Kreme by 1,229.5% in the 3rd quarter. Russell Investments Group Ltd. now owns 8,469 shares of the company’s stock valued at $33,000 after purchasing an additional 7,832 shares during the last quarter. Captrust Financial Advisors bought a new position in shares of Krispy Kreme in the 2nd quarter valued at $34,000. Apollon Wealth Management LLC acquired a new position in shares of Krispy Kreme during the 1st quarter worth $35,000. Finally, Raymond James Financial Inc. bought a new stake in shares of Krispy Kreme during the 2nd quarter worth $37,000. 81.72% of the stock is owned by institutional investors.

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.