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

Morgan Stanley cut shares of Krispy Kreme (NASDAQ:DNUT) from an equal weight rating to an underweight rating in a report published on Wednesday morning, Marketbeat.com reports. The brokerage currently has $6.00 target price on the stock, down from their prior target price of $12.00.

Separately, JPMorgan Chase & Co. cut 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 analyst has rated the stock with a sell rating, two have assigned a hold rating, five have given a buy rating and one has given a strong buy rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $13.13.

Krispy Kreme Stock Down 16.3 %

Krispy Kreme stock opened at $5.97 on Wednesday. The company has a debt-to-equity ratio of 0.67, a current ratio of 0.35 and a quick ratio of 0.28. The company’s 50-day moving average is $9.04 and its 200-day moving average is $10.37. The firm has a market capitalization of $1.01 billion, a PE ratio of 35.12, a P/E/G ratio of 3.24 and a beta of 1.34. Krispy Kreme has a fifty-two week low of $5.95 and a fifty-two week high of $17.84.

Krispy Kreme (NASDAQ:DNUT) last announced its quarterly earnings results on Tuesday, February 25th. The company reported $0.01 earnings per share for the quarter, missing analysts’ consensus estimates of $0.10 by ($0.09). Krispy Kreme had a return on equity of 0.53% and a net margin of 1.64%. The business had revenue of $404.00 million for the quarter, compared to analyst estimates of $413.18 million. During the same period last year, the firm earned $0.09 EPS. Krispy Kreme’s quarterly revenue was down 10.4% compared to the same quarter last year. Sell-side analysts anticipate that Krispy Kreme will post 0.07 earnings per share for the current year.

Krispy Kreme Announces Dividend

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

Institutional Trading of Krispy Kreme

Large investors have recently modified their holdings of the stock. Landscape Capital Management L.L.C. raised its position in shares of Krispy Kreme by 86.1% in the 3rd quarter. Landscape Capital Management L.L.C. now owns 216,559 shares of the company’s stock valued at $2,326,000 after buying an additional 100,163 shares in the last quarter. Paloma Partners Management Co raised its position in Krispy Kreme by 6,993.4% during the third quarter. Paloma Partners Management Co now owns 872,068 shares of the company’s stock valued at $9,366,000 after purchasing an additional 859,774 shares in the last quarter. Connor Clark & Lunn Investment Management Ltd. bought a new stake in Krispy Kreme during the third quarter worth $810,000. Holocene Advisors LP acquired a new stake in shares of Krispy Kreme in the 3rd quarter valued at $1,716,000. Finally, Barclays PLC increased its stake in shares of Krispy Kreme by 450.6% in the 3rd quarter. Barclays PLC now owns 169,209 shares of the company’s stock valued at $1,816,000 after purchasing an additional 138,475 shares during the last quarter. 81.72% of the stock is owned by institutional investors and hedge funds.

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.