Dnut Stock Faces Divergent Analyst Ratings Amid Krispy Kreme's -15.2% Revenue Drop

Krispy Kreme, Inc. (NASDAQ:DNUT) recently experienced a downgrade in its rating by BNP Paribas Exane from "outperform" to "neutral," setting a new price target of $3.50. This revision signals a potential upside of 7.36% from its current price. The company has become the focus of several research reports, illustrating divergent opinions among analysts.

Citigroup recently lowered its target price for Krispy Kreme from $4.75 to $3.60, maintaining a "neutral" rating. Similarly, Bank of America cut its price objective from $7.00 to $6.00, though keeping a "buy" rating. Morgan Stanley adjusted their price objective from $3.00 to $2.50 but issued an "overweight" rating. Meanwhile, Truist Financial shifted their recommendation from a "buy" to a "hold," while Morgan Stanley's latest downgrade from $3.00 to $2.50 corresponded with a slight drop in stock value of 5.9%.

Despite varied analyst ratings—four issuing a "buy" and five suggesting a "hold," with one marking it a "strong buy"—the stock holds an average rating of "Moderate Buy" and a consensus target price of $8.29 according to MarketBeat.com. While some investment firms remain optimistic, top analysts subtly recommend alternative investments over Krispy Kreme.

The company recently reported quarterly earnings on May 8th, indicating an earnings per share (EPS) of ($0.05), aligning with consensus estimates. Compared to the previous year, its quarter revenue decreased by 15.2%, totaling $375.18 million against an analyst forecast of $383.97 million. Krispy Kreme's negative net margin stood at 1.36%, with a negative return on equity of 2.13%. Analysts are predicting the company will end the fiscal year with an EPS of 0.07.

In insider activity, major shareholder Indulgence B.V. Jab sold 694,445 shares of Krispy Kreme at an average price of $4.32, amounting to a total value of $3,000,002.40. Post-transaction, the insider's ownership decreased by 0.93%, now holding 74,190,990 shares valued at approximately $320,505,076.80. Insiders collectively own 3.00% of the company's stock.

Institutional investors have been actively modifying their holdings in Krispy Kreme. BNP Paribas Financial Markets has recently acquired a substantial stake, valued at $152,305,000. Bamco Inc. NY increased its shares by 24.7%, holding a total of 13,069,717 shares currently valued at $129,782,000. Millennium Management LLC exhibited aggressive investment behavior in the first quarter, boosting its holdings by 522.1% to 2,093,416 shares valued at $10,300,000. Hedge funds hold 81.72% of Krispy Kreme's outstanding shares.

Krispy Kreme, Inc., operates across segments including U.S., International, and Market Development, providing doughnut experiences through various retail and online channels. Despite the challenging market environment, Krispy Kreme remains a prominent player in the doughnut production industry with operations spanning multiple countries.

The outlook on Krispy Kreme continues to be subject to fluctuating analyst recommendations, reflective of evolving market sentiment and economic conditions. Investors are advised to track changes closely and consider holistic evaluation methods when making investment decisions regarding Krispy Kreme's stock.