Krispy Kreme (NASDAQ:DNUT) Lowered to “Underweight” Rating by Morgan Stanley

Morgan Stanley downgraded shares of Krispy Kreme (NASDAQ:DNUT) from an equal weight rating to an underweight rating in a report issued on Wednesday, Marketbeat reports. Morgan Stanley currently has $6.00 price objective on the stock, down from their prior price objective of $12.00.

Separately, JPMorgan Chase & Co. lowered their price target on Krispy Kreme from $14.00 to $13.00 and set an “overweight” rating for the company in a report on Tuesday, November 12th. One research analyst has rated the stock with a sell rating, two have given a hold rating, five have given a buy rating and one has assigned a strong buy rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $13.13.

Krispy Kreme Price Performance

Shares of DNUT opened at $5.97 on Wednesday. The stock has a market cap of $1.01 billion, a P/E ratio of 35.12, a price-to-earnings-growth ratio of 3.24 and a beta of 1.34. Krispy Kreme has a 1 year low of $5.95 and a 1 year high of $17.84. The stock’s 50-day moving average price is $9.04 and its two-hundred day moving average price is $10.37. The company has a current ratio of 0.35, a quick ratio of 0.28 and a debt-to-equity ratio of 0.67.

Krispy Kreme (NASDAQ:DNUT) last issued its quarterly earnings data on Tuesday, February 25th. The company reported $0.01 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.10 by ($0.09). The firm had revenue of $404.00 million for the quarter, compared to analyst estimates of $413.18 million. Krispy Kreme had a net margin of 1.64% and a return on equity of 0.53%. The firm’s revenue for the quarter was down 10.4% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.09 EPS. On average, equities analysts predict that Krispy Kreme will post 0.07 earnings per share for the current year.

Krispy Kreme Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Wednesday, May 7th. Shareholders of record on Wednesday, April 23rd will be paid a $0.035 dividend. This represents a $0.14 annualized dividend and a yield of 2.35%. The ex-dividend date of this dividend is Wednesday, April 23rd. Krispy Kreme’s payout ratio is 82.35%.

Hedge Funds Weigh In On Krispy Kreme

Several hedge funds have recently made changes to their positions in DNUT. Spartan Fund Management Inc. boosted its holdings in Krispy Kreme by 150.0% during the fourth quarter. Spartan Fund Management Inc. now owns 5,000 shares of the company’s stock worth $50,000 after purchasing an additional 3,000 shares during the last quarter. Point72 DIFC Ltd bought a new stake in Krispy Kreme during the 3rd quarter worth about $51,000. Central Pacific Bank Trust Division acquired a new position in shares of Krispy Kreme during the 4th quarter worth about $71,000. Blue Trust Inc. grew its holdings in shares of Krispy Kreme by 28.3% in the 3rd quarter. Blue Trust Inc. now owns 8,064 shares of the company’s stock valued at $87,000 after acquiring an additional 1,779 shares in the last quarter. Finally, First Hawaiian Bank acquired a new stake in shares of Krispy Kreme in the fourth quarter valued at about $111,000. 81.72% of the stock is owned by institutional investors.

Krispy Kreme Company Profile

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.