An analyst sees good growth prospects for Krispy Kreme Inc. (DNUT)

Krispy Kreme Inc. (NASDAQ: DNUT) stock fell -3.30% on Tuesday to $14.95 against a previous-day closing price of $15.46. With 0.68 million shares changed hands, the volume of the stock remained lighter than its average volume of 0.85 million shares. During the session, the Grocery Stores company that operates in wider Consumer Defensive sector, reached to the highest price of $15.50 whereas the lowest price it dropped to was $14.90. The 52-week range on DNUT shows that it touched its highest point at $16.06 and its lowest point at $10.21 during that stretch. It currently has a 1-year price target of $17.88. With its current market cap of 2.50 billion, DNUT has annualized dividend of $0.14 while the current yield stands at 0.94%.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of DNUT was up-trending over the past week, with a rise of 0.07%, but this was down by -1.71% over a month. Three-month performance surged to 11.57% while six-month performance fell -1.84%. The stock gained 7.86% in the past year, while it has gained 44.86% so far this year. A look at the trailing 12-month EPS for DNUT yields -0.12 with Next year EPS estimates of 0.44. For the next quarter, that number is 0.07. This implies an EPS growth rate of 42.40% for this year and 28.07% for next year.

Float and Shares Shorts:

At present, 168.14 million DNUT shares are outstanding with a float of 82.86 million shares on hand for trading. On Apr 27, 2023, short shares totaled 10.86 million, which was 6.46% higher than short shares on Mar 30, 2023. In addition to Mr. Michael J. Tattersfield as the firm’s CEO, Pres & Director, Mr. Joshua Charlesworth serves as its Global Pres & COO.

Institutional Ownership:

Through their ownership of 42.08% of DNUT’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 49.50% of DNUT, in contrast to 12.73% held by mutual funds. Shares owned by individuals account for 11.68%. As the largest shareholder in DNUT with 3.79% of the stake, The Vanguard Group, Inc. holds 6,363,725 shares worth 6,363,725. A second-largest stockholder of DNUT, BlackRock Fund Advisors, holds 4,286,634 shares, controlling over 2.55% of the firm’s shares. BAMCO, Inc. is the third largest shareholder in DNUT, holding 3,828,966 shares or 2.28% stake. With a 1.24% stake in DNUT, the Vanguard Total Stock Market ETF is the largest stakeholder. A total of 2,090,545 shares are owned by the mutual fund manager. The Vanguard Small Cap Index Fund, which owns about 1.05% of DNUT stock, is the second-largest Mutual Fund holder. It holds 1,764,654 shares valued at 27.14 million. iShares Russell 2000 ETF holds 0.91% of the stake in DNUT, owning 1,528,803 shares worth 23.51 million.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Apr 01, 2023, DNUT reported revenue of $375.25M and operating income of $7.51M. The EBITDA in the recently reported quarter was $34.57M and diluted EPS was -$0.02.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for DNUT since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With DNUT analysts setting a high price target of $20.00 and a low target of $14.00, the average target price over the next 12 months is $17.38. Based on these targets, DNUT could surge 33.78% to reach the target high and fall by -6.35% to reach the target low. Reaching the average price target will result in a growth of 16.25% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.

Summary of Insider Activity:

Insiders traded DNUT stock several times over the past three months with 1 Buys and 2 Sells. In these transactions, 697,892 shares were bought while 697,892 shares were sold. The number of buy transactions has increased to 6 while that of sell transactions has risen to 9 over the past year. The total number of shares bought during that period was 1,020,315 while 788,615 shares were sold.

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