Krispy Kreme (NASDAQ:DNUT) Stock Price Down 3.2% - Should You Sell?

Shares of Krispy Kreme, Inc. (NASDAQ:DNUT - Get Free Report) dropped 3.2% during mid-day trading on Wednesday . The stock traded as low as $5.59 and last traded at $5.54. Approximately 107,329 shares were traded during trading, a decline of 96% from the average daily volume of 2,410,910 shares. The stock had previously closed at $5.72.

Analyst Upgrades and Downgrades

A number of analysts have weighed in on the company. Morgan Stanley lowered Krispy Kreme from an "equal weight" rating to an "underweight" rating and lowered their target price for the stock from $12.00 to $6.00 in a report on Wednesday, February 26th. Truist Financial restated a "buy" rating and set a $12.00 price objective (down from $15.00) on shares of Krispy Kreme in a research note on Wednesday, February 26th. Finally, Piper Sandler cut their target price on Krispy Kreme from $18.00 to $12.00 and set an "overweight" rating on the stock in a research note on Wednesday, February 26th. One investment analyst has rated the stock with a sell rating, two have assigned a hold rating, five have assigned a buy rating and one has issued a strong buy rating to the company's stock. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $13.13.

Krispy Kreme Stock Down 2.5 %

The company has a 50-day moving average of $7.72 and a 200-day moving average of $9.75. The company has a current ratio of 0.35, a quick ratio of 0.28 and a debt-to-equity ratio of 0.67. The company has a market capitalization of $936.65 million, a price-to-earnings ratio of 32.35, a price-to-earnings-growth ratio of 3.24 and a beta of 1.40.

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Krispy Kreme (NASDAQ:DNUT - Get Free Report) last announced its quarterly earnings data on Tuesday, February 25th. The company reported $0.01 EPS for the quarter, missing the consensus estimate of $0.10 by ($0.09). The company had revenue of $404.00 million during the quarter, compared to analysts' expectations of $413.18 million. Krispy Kreme had a net margin of 1.64% and a return on equity of 0.53%. The business's revenue for the quarter was down 10.4% compared to the same quarter last year. During the same period in the previous year, the business earned $0.09 earnings per share. On average, equities analysts predict that Krispy Kreme, Inc. will post 0.07 earnings per share for the current fiscal year.

Krispy Kreme Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, May 7th. Stockholders of record on Wednesday, April 23rd will be issued a dividend of $0.035 per share. This represents a $0.14 dividend on an annualized basis and a dividend yield of 2.55%. The ex-dividend date of this dividend is Wednesday, April 23rd. Krispy Kreme's dividend payout ratio (DPR) is presently 700.00%.

Hedge Funds Weigh In On Krispy Kreme

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. BNP Paribas Financial Markets purchased a new stake in Krispy Kreme during the 4th quarter valued at about $152,305,000. Bamco Inc. NY boosted its position in Krispy Kreme by 24.7% in the fourth quarter. Bamco Inc. NY now owns 13,069,717 shares of the company's stock valued at $129,782,000 after buying an additional 2,588,398 shares during the last quarter. Cooper Creek Partners Management LLC increased its holdings in Krispy Kreme by 43.0% in the 4th quarter. Cooper Creek Partners Management LLC now owns 7,264,760 shares of the company's stock worth $72,139,000 after buying an additional 2,186,136 shares during the period. Dimensional Fund Advisors LP raised its position in Krispy Kreme by 8.7% during the 4th quarter. Dimensional Fund Advisors LP now owns 4,191,111 shares of the company's stock worth $41,614,000 after buying an additional 333,764 shares during the last quarter. Finally, Geode Capital Management LLC lifted its stake in Krispy Kreme by 0.5% during the 4th quarter. Geode Capital Management LLC now owns 2,110,288 shares of the company's stock valued at $20,960,000 after acquiring an additional 10,643 shares during the period. Hedge funds and other institutional investors own 81.72% of the company's stock.

About Krispy Kreme

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.