Kellogg (K) Shares Gap Down After Earnings Miss

Shares of Kellogg (NYSE:K) gapped down prior to trading on Thursday following a dissappointing earnings announcement. The stock had previously closed at $65.29, but opened at $65.48. Kellogg shares last traded at $64.25, with a volume of 181879 shares traded.

The company reported $1.06 EPS for the quarter, missing the Zacks’ consensus estimate of $1.07 by ($0.01). Kellogg had a return on equity of 59.68% and a net margin of 13.33%. The firm had revenue of $3.47 billion during the quarter, compared to the consensus estimate of $3.43 billion. During the same quarter in the prior year, the business posted $1.03 EPS. Kellogg’s revenue was up 6.9% compared to the same quarter last year.

The business also recently announced a quarterly dividend, which will be paid on Monday, December 17th. Stockholders of record on Monday, December 3rd will be issued a $0.56 dividend. The ex-dividend date of this dividend is Friday, November 30th. This represents a $2.24 dividend on an annualized basis and a dividend yield of 3.49%. Kellogg’s payout ratio is presently 55.45%.

A number of brokerages have recently issued reports on K. Morgan Stanley began coverage on Kellogg in a report on Monday, September 17th. They issued an “equal weight” rating and a $75.00 target price for the company. Wells Fargo & Co reissued a “hold” rating and issued a $67.00 target price (up from $62.00) on shares of Kellogg in a report on Sunday, August 5th. ValuEngine raised Kellogg from a “hold” rating to a “buy” rating in a report on Wednesday, October 24th. Credit Suisse Group increased their target price on Kellogg from $71.00 to $75.00 and gave the stock a “hold” rating in a report on Thursday, August 9th. Finally, Zacks Investment Research raised Kellogg from a “sell” rating to a “hold” rating in a report on Thursday, October 25th. Two equities research analysts have rated the stock with a sell rating, ten have issued a hold rating and seven have given a buy rating to the company’s stock. The company currently has a consensus rating of “Hold” and a consensus target price of $72.41.

In related news, Vice Chairman Gary H. Pilnick sold 66,655 shares of the firm’s stock in a transaction on Monday, August 6th. The stock was sold at an average price of $72.25, for a total transaction of $4,815,823.75. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Also, major shareholder Kellogg W. K. Foundation Trust sold 150,000 shares of the firm’s stock in a transaction on Thursday, August 9th. The shares were sold at an average price of $71.20, for a total value of $10,680,000.00. The disclosure for this sale can be found here. Insiders have sold a total of 636,655 shares of company stock valued at $45,829,574 over the last ninety days. Insiders own 1.40% of the company’s stock.

A number of hedge funds have recently added to or reduced their stakes in the stock. LFA Lugano Financial Advisors SA acquired a new stake in shares of Kellogg in the 2nd quarter valued at $103,000. Financial Architects Inc acquired a new stake in shares of Kellogg in the 3rd quarter valued at $111,000. CSat Investment Advisory L.P. acquired a new stake in shares of Kellogg in the 2nd quarter valued at $127,000. Fort L.P. acquired a new stake in shares of Kellogg in the 2nd quarter valued at $127,000. Finally, Kiley Juergens Wealth Management LLC increased its stake in shares of Kellogg by 57.7% in the 3rd quarter. Kiley Juergens Wealth Management LLC now owns 2,127 shares of the company’s stock valued at $148,000 after buying an additional 778 shares during the period. 88.98% of the stock is owned by hedge funds and other institutional investors.

The company has a market cap of $24.91 billion, a P/E ratio of 15.98, a price-to-earnings-growth ratio of 2.11 and a beta of 0.49. The company has a quick ratio of 0.50, a current ratio of 0.82 and a debt-to-equity ratio of 2.57.

About Kellogg (NYSE:K)

Kellogg Company, together with its subsidiaries, manufactures and markets ready-to-eat cereal and convenience foods. The company operates through U.S. Morning Foods, U.S. Snacks, U.S. Specialty, North America Other, Europe, Latin America, and Asia Pacific segments. Its principal products include cookies, crackers, savory snacks, toaster pastries, cereal bars, granola bars and bites, fruit-flavored snacks, ready-to-eat cereals, frozen waffles, and veggie foods.

Further Reading: Float

Receive News & Ratings for Kellogg Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Kellogg and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply