Unusual Call Option Trade in Krispy Kreme Worth $10K

On February 27, 2023 at 11:01:54 (ET) an unusually large $10.00K block of Call contracts in Krispy Kreme (DNUT) was bought, with a strike price of $15.00 / share, expiring in 18 days (on March 17, 2023). Fintel tracks all large options trades, and the premium spent on this trade was 1.00 sigmas above the mean, placing it in the percentile of all recent large trades made in DNUT options.

Analyst Price Forecast Suggests 21.07% Upside

As of February 25, 2023, the average one-year price target for Krispy Kreme is $15.61. The forecasts range from a low of $13.13 to a high of $22.05. The average price target represents an increase of 21.07% from its latest reported closing price of $12.89.

The projected annual revenue for Krispy Kreme is $1,715MM, an increase of 12.10%. The projected annual EPS is $0.42.

What is the Fund Sentiment?

There are 293 funds or institutions reporting positions in Krispy Kreme. This is an increase of 29 owner(s) or 10.98% in the last quarter. Average portfolio weight of all funds dedicated to DNUT is 0.29%, a decrease of 21.23%. Total shares owned by institutions increased in the last three months by 6.96% to 60,719K shares. The put/call ratio of DNUT is 0.65, indicating a bullish outlook.

What are large shareholders doing?

Bdt Capital Partners holds 14,301K shares representing 8.51% ownership of the company. No change in the last quarter.

Bamco holds 3,829K shares representing 2.28% ownership of the company. In it’s prior filing, the firm reported owning 4,046K shares, representing a decrease of 5.68%. The firm decreased its portfolio allocation in DNUT by 11.97% over the last quarter.

Board of Trustees of The Leland Stanford Junior University holds 2,188K shares representing 1.30% ownership of the company. No change in the last quarter.

Trustees Of The University Of Pennsylvania holds 2,009K shares representing 1.19% ownership of the company. No change in the last quarter.

VTSMX – Vanguard Total Stock Market Index Fund Investor Shares holds 1,991K shares representing 1.18% ownership of the company. In it’s prior filing, the firm reported owning 1,991K shares, representing an increase of 0.03%. The firm decreased its portfolio allocation in DNUT by 11.60% over the last quarter.

Krispy Kreme Declares $0.04 Dividend

On February 8, 2023 the company declared a regular quarterly dividend of $0.04 per share ($0.14 annualized). Shareholders of record as of April 26, 2023 will receive the payment on May 10, 2023. Previously, the company paid $0.04 per share.

At the current share price of $12.89 / share, the stock’s dividend yield is 1.09%. Looking back five years and taking a sample every week, the average dividend yield has been 1.00%, the lowest has been 0.75%, and the highest has been 1.26%. The standard deviation of yields is 0.10 (n=68).

The current dividend yield is 0.79 standard deviations above the historical average.

Additionally, the company’s dividend payout ratio is -1.51. The payout ratio tells us how much of a company’s income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company’s income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend – not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

Krispy Kreme Background Information
(This description is provided by the company.)

Krispy Kreme Doughnuts, Inc. owns, operates, and franchises retail stores that sell doughnuts and complementary products. The Company specializes in making doughnuts and other snacks. Krispy Kreme Doughnuts also offers coffee and soft drinks worldwide.

This article originally appeared on Fintel

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