Investors Buy Kellogg (K) on Weakness
Traders purchased shares of Kellogg (NYSE:K) on weakness during trading on Thursday. $36.52 million flowed into the stock on the tick-up and $10.91 million flowed out of the stock on the tick-down, for a money net flow of $25.61 million into the stock. Of all equities tracked, Kellogg had the 18th highest net in-flow for the day. Kellogg traded down ($0.26) for the day and closed at $68.03
Several analysts have recently weighed in on the stock. Morgan Stanley decreased their price target on shares of Kellogg from $70.00 to $66.00 and set an “equal weight” rating for the company in a research note on Friday, October 13th. Royal Bank of Canada reaffirmed a “hold” rating and set a $78.00 price target on shares of Kellogg in a research note on Wednesday, October 25th. Credit Suisse Group decreased their price target on shares of Kellogg from $70.00 to $65.00 and set a “neutral” rating for the company in a research note on Friday, October 20th. BMO Capital Markets reaffirmed a “hold” rating and set a $78.00 price target on shares of Kellogg in a research note on Wednesday, September 6th. Finally, Bank of America reaffirmed an “underperform” rating and set a $66.00 price target (down previously from $72.00) on shares of Kellogg in a research note on Monday, October 9th. Three analysts have rated the stock with a sell rating, ten have issued a hold rating and three have assigned a buy rating to the company. The company currently has an average rating of “Hold” and an average price target of $71.15.
The firm has a market capitalization of $23,502.50, a P/E ratio of 17.01, a P/E/G ratio of 2.75 and a beta of 0.52. The company has a debt-to-equity ratio of 3.71, a current ratio of 0.68 and a quick ratio of 0.43.
Kellogg (NYSE:K) last issued its quarterly earnings data on Tuesday, October 31st. The company reported $1.05 EPS for the quarter, topping analysts’ consensus estimates of $0.94 by $0.11. The company had revenue of $3.27 billion during the quarter, compared to the consensus estimate of $3.22 billion. Kellogg had a net margin of 6.15% and a return on equity of 73.92%. Kellogg’s revenue for the quarter was up .6% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.96 earnings per share. equities analysts predict that Kellogg will post 4.03 EPS for the current year.
The firm also recently declared a quarterly dividend, which was paid on Friday, December 15th. Stockholders of record on Friday, December 1st were given a dividend of $0.54 per share. This represents a $2.16 dividend on an annualized basis and a dividend yield of 3.18%. The ex-dividend date of this dividend was Thursday, November 30th. Kellogg’s payout ratio is presently 96.43%.
Kellogg declared that its Board of Directors has initiated a share repurchase program on Friday, December 15th that allows the company to buyback $1.50 billion in outstanding shares. This buyback authorization allows the company to repurchase shares of its stock through open market purchases. Shares buyback programs are typically an indication that the company’s management believes its stock is undervalued.
In other news, Director Donald R. Knauss sold 6,846 shares of the business’s stock in a transaction on Thursday, November 2nd. The shares were sold at an average price of $62.57, for a total transaction of $428,354.22. Following the sale, the director now directly owns 5,000 shares of the company’s stock, valued at $312,850. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, CEO Steven A. Cahillane acquired 15,930 shares of the company’s stock in a transaction dated Thursday, November 2nd. The shares were bought at an average cost of $62.70 per share, for a total transaction of $998,811.00. Following the completion of the acquisition, the chief executive officer now directly owns 15,930 shares of the company’s stock, valued at $998,811. The disclosure for this purchase can be found here. Over the last ninety days, insiders have sold 349,754 shares of company stock worth $22,304,119. Insiders own 1.30% of the company’s stock.
Several institutional investors and hedge funds have recently made changes to their positions in K. CLS Investments LLC purchased a new stake in Kellogg in the third quarter valued at $124,000. Koch Industries Inc. purchased a new stake in Kellogg in the second quarter valued at $217,000. FDO Partners LLC purchased a new stake in Kellogg in the third quarter valued at $219,000. Raab & Moskowitz Asset Management LLC purchased a new stake in Kellogg in the second quarter valued at $222,000. Finally, Valeo Financial Advisors LLC purchased a new stake in Kellogg in the third quarter valued at $224,000. 89.59% of the stock is currently owned by hedge funds and other institutional investors.
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Kellogg Company is a manufacturer and marketer of ready-to-eat cereal and convenience foods. The Company’s principal products are ready-to-eat cereals and convenience foods, such as cookies, crackers, savory snacks, toaster pastries, cereal bars, fruit-flavored snacks, frozen waffles and veggie foods.
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