Krispy Kreme (NASDAQ:DNUT) Sets New 12-Month Low – Should You Sell?

Krispy Kreme, Inc. (NASDAQ:DNUT)’s stock price hit a new 52-week low during mid-day trading on Friday . The stock traded as low as $5.16 and last traded at $5.19, with a volume of 820039 shares traded. The stock had previously closed at $5.49.

Wall Street Analyst Weigh In

Several research firms have recently commented on DNUT. Piper Sandler reduced their price target on shares of Krispy Kreme from $18.00 to $12.00 and set an “overweight” rating for the company in a research report on Wednesday, February 26th. Truist Financial reiterated a “buy” rating and issued a $12.00 price target (down from $15.00) on shares of Krispy Kreme in a research report on Wednesday, February 26th. Finally, Morgan Stanley downgraded shares of Krispy Kreme from an “equal weight” rating to an “underweight” rating and cut their price objective for the company from $12.00 to $6.00 in a research report on Wednesday, February 26th. One equities research analyst has rated the stock with a sell rating, one has issued a hold rating, five have given a buy rating and one has issued a strong buy rating to the company. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $12.29.

Krispy Kreme Trading Down 9.6 %

The stock has a market capitalization of $845.54 million, a PE ratio of 29.21, a PEG ratio of 3.24 and a beta of 1.40. The stock’s 50 day moving average price is $7.45 and its 200-day moving average price is $9.61. The company has a quick ratio of 0.28, a current ratio of 0.35 and a debt-to-equity ratio of 0.67.

Krispy Kreme (NASDAQ:DNUT) last posted its quarterly earnings results on Tuesday, February 25th. The company reported $0.01 EPS for the quarter, missing analysts’ consensus estimates of $0.10 by ($0.09). Krispy Kreme had a net margin of 1.64% and a return on equity of 0.53%. The business had revenue of $404.00 million for the quarter, compared to the consensus estimate of $413.18 million. During the same period in the prior year, the business earned $0.09 earnings per share. Krispy Kreme’s revenue was down 10.4% compared to the same quarter last year. On average, sell-side analysts expect that Krispy Kreme, Inc. will post 0.07 earnings per share for the current fiscal year.

Krispy Kreme Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, May 7th. Stockholders of record on Wednesday, April 23rd will be issued a $0.035 dividend. This represents a $0.14 annualized dividend and a dividend yield of 2.82%. The ex-dividend date is Wednesday, April 23rd. Krispy Kreme’s dividend payout ratio (DPR) is presently 700.00%.

Hedge Funds Weigh In On Krispy Kreme

Several institutional investors have recently bought and sold shares of DNUT. Point72 DIFC Ltd purchased a new stake in Krispy Kreme in the 3rd quarter worth $51,000. Spartan Fund Management Inc. boosted its stake in Krispy Kreme by 150.0% during the fourth quarter. Spartan Fund Management Inc. now owns 5,000 shares of the company’s stock valued at $50,000 after buying an additional 3,000 shares during the last quarter. Central Pacific Bank Trust Division bought a new position in Krispy Kreme during the fourth quarter valued at approximately $71,000. First Hawaiian Bank bought a new stake in Krispy Kreme in the 4th quarter worth approximately $111,000. Finally, Ameriprise Financial Inc. purchased a new stake in shares of Krispy Kreme during the 4th quarter worth approximately $128,000. 81.72% of the stock is owned by hedge funds and other institutional investors.

Krispy Kreme Company Profile

Krispy Kreme, Inc, together with its subsidiaries, produces doughnuts in the United States, the United Kingdom, Ireland, Australia, New Zealand, Mexico, Canada, Japan, and internationally. The company operates through three segments: U.S., International, and Market Development. The company offers doughnut experiences through hot light theater and fresh shops, delivered fresh daily branded cabinets and merchandising units within grocery and convenience stores, quick service restaurants, club memberships, drug stores, and ecommerce, as well as through its branded sweet treat line comprising Krispy Kreme branded sweet treats.