Krispy Kreme (NASDAQ:DNUT) Shares Gap Up After Insider Buying Activity

Krispy Kreme, Inc. (NASDAQ:DNUT) gapped up before the market opened on Friday following insider buying activity. The stock had previously closed at $3.42, but opened at $3.64. Krispy Kreme shares last traded at $3.59, with a volume of 723,421 shares.

Specifically, Director Bernardo Hees purchased 200,989 shares of the company’s stock in a transaction dated Thursday, May 28th. The shares were bought at an average price of $3.42 per share, with a total value of $687,382.38. Following the completion of the transaction, the director directly owned 919,522 shares in the company, valued at $3,144,765.24. This trade represents a 27.97% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Bernardo Hees acquired 22,114 shares of Krispy Kreme stock in a transaction dated Wednesday, May 27th. The stock was purchased at an average price of $3.38 per share, with a total value of $74,745.32. Following the completion of the purchase, the director directly owned 718,533 shares of the company’s stock, valued at $2,428,641.54. The trade was a 3.18% increase in their position. The SEC filing for this purchase provides additional information.

Wall Street Analysts Forecast Growth

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

Krispy Kreme Price 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’s 50-day moving average price is $3.49 and its 200 day moving average price is $3.66. The firm has a market cap of $612.88 million, a price-to-earnings ratio of -1.19 and a beta of 1.32.

Krispy Kreme (NASDAQ:DNUT) last released its earnings results on Thursday, May 7th. The company reported ($0.05) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.03) by ($0.02). Krispy Kreme had a negative return on equity of 4.34% and a negative net margin of 33.36%.The firm had revenue of $367.03 million for the quarter, compared to analyst estimates of $359.42 million. During the same period last year, the business earned ($0.05) earnings per share. The firm’s quarterly revenue was down 2.2% compared to the same quarter last year. Equities research analysts predict that Krispy Kreme, Inc. will post -0.01 earnings per share for the current year.

Institutional Trading of Krispy Kreme

Several institutional investors have recently modified their holdings of DNUT. Russell Investments Group Ltd. increased its position in shares of Krispy Kreme by 1,229.5% during the third 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 period. FNY Investment Advisers LLC bought a new position in Krispy Kreme in the fourth quarter worth $40,000. Apollon Wealth Management LLC bought a new position in Krispy Kreme in the first quarter worth $35,000. Prudential Financial Inc. acquired a new stake in Krispy Kreme during the second quarter worth $32,000. Finally, Captrust Financial Advisors bought a new stake in Krispy Kreme in the 2nd quarter valued at $34,000. Institutional investors and hedge funds own 81.72% of the company’s stock.

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.