Morgan Stanley Initiates Coverage on Krispy Kreme (NASDAQ:DNUT)

Morgan Stanley started coverage on shares of Krispy Kreme (NASDAQ:DNUT - Free Report) in a research report sent to investors on Tuesday morning, StockNewsAPI reports. The firm issued an equal weight rating and a $14.00 target price on the stock.

Other equities research analysts have also issued research reports about the stock. Bank of America upped their target price on shares of Krispy Kreme from $15.00 to $16.00 and gave the stock a "buy" rating in a report on Tuesday, October 22nd. Evercore ISI reissued an "in-line" rating and set a $13.00 price objective on shares of Krispy Kreme in a report on Tuesday, August 27th. Hsbc Global Res raised shares of Krispy Kreme from a "hold" rating to a "strong-buy" rating in a report on Tuesday, July 23rd. Finally, HSBC raised shares of Krispy Kreme from a "hold" rating to a "buy" rating and set a $14.00 price objective on the stock in a report on Tuesday, July 23rd. Four equities research analysts have rated the stock with a hold rating, five have assigned a buy rating and one has assigned a strong buy rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $15.67.

Krispy Kreme Price Performance

Shares of DNUT stock traded up $0.39 during mid-day trading on Tuesday, reaching $12.21. The company's stock had a trading volume of 2,025,499 shares, compared to its average volume of 2,041,511. Krispy Kreme has a 1-year low of $9.18 and a 1-year high of $17.84. The company has a market cap of $2.07 billion, a P/E ratio of -40.23, a PEG ratio of 2.91 and a beta of 1.39. The company has a debt-to-equity ratio of 0.73, a quick ratio of 0.26 and a current ratio of 0.34. The firm's 50-day moving average is $11.35 and its two-hundred day moving average is $11.26.

Krispy Kreme (NASDAQ:DNUT - Get Free Report) last announced its quarterly earnings data on Thursday, August 8th. The company reported $0.05 earnings per share (EPS) for the quarter, meeting analysts' consensus estimates of $0.05. Krispy Kreme had a negative net margin of 2.98% and a positive return on equity of 1.12%. The company had revenue of $438.80 million during the quarter, compared to analysts' expectations of $435.43 million. During the same quarter in the prior year, the company posted $0.04 EPS. The business's revenue was up 7.3% on a year-over-year basis. On average, research analysts predict that Krispy Kreme will post 0.13 earnings per share for the current year.

Krispy Kreme Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, November 6th. Stockholders of record on Wednesday, October 23rd will be paid a $0.035 dividend. This represents a $0.14 annualized dividend and a dividend yield of 1.15%. The ex-dividend date is Wednesday, October 23rd. Krispy Kreme's dividend payout ratio (DPR) is presently -46.67%.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the business. Millennium Management LLC raised its position in shares of Krispy Kreme by 136.7% in the 2nd quarter. Millennium Management LLC now owns 3,500,855 shares of the company's stock valued at $37,669,000 after acquiring an additional 2,021,974 shares during the period. Marshall Wace LLP acquired a new stake in shares of Krispy Kreme in the 2nd quarter valued at approximately $18,765,000. Samlyn Capital LLC raised its position in shares of Krispy Kreme by 120.5% in the 2nd quarter. Samlyn Capital LLC now owns 2,230,176 shares of the company's stock valued at $23,997,000 after acquiring an additional 1,218,699 shares during the period. Dimensional Fund Advisors LP raised its position in shares of Krispy Kreme by 38.1% in the 2nd quarter. Dimensional Fund Advisors LP now owns 3,779,882 shares of the company's stock valued at $40,670,000 after acquiring an additional 1,042,345 shares during the period. Finally, Driehaus Capital Management LLC raised its position in shares of Krispy Kreme by 121.7% in the 2nd quarter. Driehaus Capital Management LLC now owns 1,190,865 shares of the company's stock valued at $12,814,000 after acquiring an additional 653,637 shares during the period. 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.