Krispy Kreme (NASDAQ:DNUT) Sees Unusually-High Trading Volume – Here’s Why

Shares of Krispy Kreme, Inc. (NASDAQ:DNUT) saw unusually-strong trading volume on Monday . Approximately 2,478,732 shares were traded during mid-day trading, a decline of 4% from the previous session’s volume of 2,569,085 shares.The stock last traded at $3.4350 and had previously closed at $3.47.

Analyst Ratings Changes

A number of equities analysts have commented on the company. Zacks Research downgraded Krispy Kreme from a “hold” rating to a “strong sell” rating in a research note on Thursday, August 6th. Evercore set a $4.00 price objective on Krispy Kreme in a research report on Friday, August 7th. Wall Street Zen lowered Krispy Kreme from a “hold” rating to a “sell” rating in a research report on Saturday, August 8th. Finally, Weiss Ratings raised shares of Krispy Kreme from a “sell (e+)” rating to a “sell (d-)” rating in a report on Wednesday. Two research analysts have rated the stock with a Buy rating and three have given a Sell rating to the company. According to MarketBeat, the company currently has an average rating of “Reduce” and an average target price of $4.33.

Krispy Kreme Price Performance

The company has a market capitalization of $586.16 million, a P/E ratio of -6.07 and a beta of 1.27. The business’s 50-day simple moving average is $3.36 and its 200 day simple moving average is $3.43. The company has a current ratio of 0.36, a quick ratio of 0.29 and a debt-to-equity ratio of 1.28.

Krispy Kreme (NASDAQ:DNUT) last posted its quarterly earnings data on Thursday, August 6th. The company reported ($0.03) earnings per share (EPS) for the quarter, meeting the consensus estimate of ($0.03). Krispy Kreme had a negative net margin of 6.16% and a negative return on equity of 1.17%. The business had revenue of $331.00 million during the quarter, compared to analysts’ expectations of $303.35 million. During the same period last year, the firm posted ($0.15) earnings per share. The business’s revenue was down 12.8% on a year-over-year basis. As a group, sell-side analysts anticipate that Krispy Kreme, Inc. will post -0.07 EPS for the current year.

Insider Transactions at Krispy Kreme

In other news, Director Bernardo Hees purchased 235,875 shares of the stock in a transaction dated Tuesday, June 2nd. The shares were bought at an average cost of $3.39 per share, for a total transaction of $799,616.25. Following the transaction, the director owned 1,229,037 shares in the company, valued at $4,166,435.43. This trade represents a 23.75% increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Over the last three months, insiders acquired 581,473 shares of company stock worth $1,951,870. Company insiders own 1.60% of the company’s stock.

Institutional Trading of Krispy Kreme

Several institutional investors have recently modified their holdings of DNUT. Allworth Financial LP acquired a new position in Krispy Kreme during the second quarter worth about $25,000. Russell Investments Group Ltd. lifted its holdings in Krispy Kreme by 1,229.5% in the 3rd quarter. Russell Investments Group Ltd. now owns 8,469 shares of the company’s stock valued at $33,000 after acquiring an additional 7,832 shares during the last quarter. Apollon Wealth Management LLC acquired a new stake in Krispy Kreme in the 1st quarter valued at about $35,000. Coastal Bridge Advisors LLC bought a new position in shares of Krispy Kreme during the 2nd quarter valued at about $37,000. Finally, Prudential Financial Inc. bought a new position in shares of Krispy Kreme during the 2nd quarter valued at about $32,000. Institutional investors and hedge funds own 81.72% of the company’s stock.

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.