Shares of Krispy Kreme, Inc. (NASDAQ:DNUT) are currently rated as a “Hold” by analysts, reflecting a mixed outlook as the company navigates market challenges. According to MarketBeat Ratings, twelve firms are covering the stock, with two analysts issuing sell ratings, six maintaining hold ratings, and four recommending buy ratings.
The average twelve-month target price set by these analysts stands at $5.51. Recent reports have highlighted varying perspectives on the stock’s performance and future potential. For instance, on December 29, Weiss Ratings reiterated a “sell (d)” rating on Krispy Kreme shares, indicating ongoing caution. Conversely, on October 22, Singular Research upgraded the company’s rating to “moderate buy,” suggesting some analysts see potential for growth.
Analysts have also adjusted their price targets for the stock. Capital One Financial reduced its target from $6.00 to $4.00, while maintaining an “equal weight” rating. On January 3, Wall Street Zen lowered its rating from hold to sell, reflecting a more pessimistic view. In contrast, Zacks Research raised its rating to hold from a previous strong sell, indicating a slight shift in sentiment.
Krispy Kreme shares traded at $4.28 on the most recent trading day, showing a modest increase of 0.2%. The company reports a market capitalization of $733.16 million and notable financial metrics, including a debt-to-equity ratio of 1.31. Over the past year, the stock has experienced a low of $2.50 and a high of $9.56.
In its latest earnings report released on November 6, Krispy Kreme reported earnings per share (EPS) of $0.01 for the quarter, surpassing analysts’ expectations of a loss of $0.06. However, quarterly revenue of $375.30 million fell short of the consensus estimate of $378.29 million, suggesting challenges in maintaining sales growth. The company’s revenue also declined by 1.2% compared to the same quarter last year.
Hedge funds have been actively adjusting their positions in Krispy Kreme. In the second quarter, Pacific Point Advisors LLC acquired a new stake valued at approximately $341,000, while Counterpoint Mutual Funds LLC invested around $333,000. Notably, XTX Topco Ltd increased its holdings by 452.4%, now owning 340,289 shares valued at approximately $990,000 after acquiring an additional 278,682 shares. Federated Hermes Inc. significantly boosted its stake by 78.9%, now holding over 3 million shares worth $8.75 million.
Despite these adjustments, institutional investors retain a strong presence, owning 81.72% of Krispy Kreme stock. The company, founded in 1937 in Winston-Salem, North Carolina, has grown from a local shop to a global brand, known for its signature Original Glazed doughnuts and a diverse range of sweet treats.
As analysts continue to evaluate Krispy Kreme’s performance and market position, the company remains a notable player in the food retail sector, striving to adapt to changing consumer preferences and economic conditions.
