Traders Purchase Large Volume of Call Options on Krispy Kreme (NASDAQ:DNUT)

Krispy Kreme, Inc. (NASDAQ:DNUT) was the target of some unusual options trading on Wednesday. Stock traders acquired 75,075 call options on the stock. This is an increase of 628% compared to the average volume of 10,313 call options.

Krispy Kreme Stock Performance

Shares of NASDAQ:DNUT opened at $4.11 on Friday. The company has a market cap of $703.63 million, a P/E ratio of -1.55 and a beta of 1.34. The company has a debt-to-equity ratio of 1.24, a quick ratio of 0.26 and a current ratio of 0.34. Krispy Kreme has a one year low of $2.50 and a one year high of $12.68. The business’s 50-day simple moving average is $3.46 and its 200 day simple moving average is $3.44.

Krispy Kreme (NASDAQ:DNUT) last announced its earnings results on Thursday, August 7th. The company reported ($0.15) EPS for the quarter, missing the consensus estimate of ($0.05) by ($0.10). The company had revenue of $379.77 million for the quarter, compared to analysts’ expectations of $382.25 million. Krispy Kreme had a negative net margin of 29.33% and a negative return on equity of 5.55%. The business’s quarterly revenue was down 13.5% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.05 earnings per share. On average, sell-side analysts forecast that Krispy Kreme will post 0.07 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

Several equities analysts have recently weighed in on DNUT shares. Zacks Research lowered Krispy Kreme from a “hold” rating to a “strong sell” rating in a research note on Monday, August 25th. Bank of America reduced their price objective on Krispy Kreme from $7.00 to $6.00 and set a “buy” rating on the stock in a research note on Friday, July 18th. BNP Paribas raised Krispy Kreme to a “hold” rating in a research note on Monday, July 21st. BNP Paribas Exane lowered Krispy Kreme from an “outperform” rating to a “neutral” rating and set a $3.50 price objective on the stock. in a research note on Monday, July 21st. Finally, Weiss Ratings reaffirmed a “sell (e+)” rating on shares of Krispy Kreme in a research note on Wednesday, October 8th. Four research analysts have rated the stock with a Buy rating, five have issued a Hold rating and three have assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average target price of $6.45.

Institutional Investors Weigh In On Krispy Kreme

Hedge funds and other institutional investors have recently bought and sold shares of the business. Capstone Financial Advisors Inc. purchased a new stake in Krispy Kreme during the 2nd quarter worth approximately $29,000. Vanguard Personalized Indexing Management LLC purchased a new stake in Krispy Kreme during the 2nd quarter worth approximately $30,000. R Squared Ltd purchased a new stake in Krispy Kreme during the 2nd quarter worth approximately $31,000. Prudential Financial Inc. purchased a new stake in Krispy Kreme during the 2nd quarter worth approximately $32,000. Finally, Captrust Financial Advisors purchased a new stake in Krispy Kreme during the 2nd quarter worth approximately $34,000. 81.72% of the stock is currently owned by hedge funds and other 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.