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

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

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

Krispy Kreme Trading Up 3.4%

NASDAQ:DNUT opened at $3.34 on Thursday. The company has a market capitalization of $575.82 million, a P/E ratio of -5.96 and a beta of 1.27. The stock’s 50 day moving average price is $3.46 and its 200 day moving average price is $3.41. The company has a debt-to-equity ratio of 1.31, a quick ratio of 0.36 and a current ratio of 0.42. Krispy Kreme has a 52 week low of $2.88 and a 52 week high of $5.11.

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

Insider Transactions at Krispy Kreme

In related news, Director Bernardo Hees purchased 25,002 shares of the stock in a transaction on Friday, June 5th. The shares were bought at an average price of $3.49 per share, for a total transaction of $87,256.98. Following the completion of the acquisition, the director directly owned 1,574,635 shares in the company, valued at approximately $5,495,476.15. This trade represents a 1.61% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders purchased a total of 880,190 shares of company stock worth $2,973,833 over the last three months. 1.60% of the stock is owned by corporate insiders.

Institutional Trading of Krispy Kreme

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

About Krispy Kreme

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.