Kellogg (K) – Analysts’ Weekly Ratings Updates

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Kellogg (NYSE: K) has recently received a number of price target changes and ratings updates:

  • 5/11/2019 – Kellogg was upgraded by analysts at ValuEngine from a “sell” rating to a “hold” rating.
  • 5/7/2019 – Kellogg was upgraded by analysts at Zacks Investment Research from a “sell” rating to a “hold” rating. According to Zacks, “Kellogg’s shares have increased in the past three months. The company boasts an impressive top line performance. In the first quarter of 2019, revenues advanced 3.5% year over year, driven by the consolidation of Multipro, improved consumption trends, gains from price/mix and growth across revitalised brands. The acquisition of Pringles has also been yielding well. Further, the company is on track with brand growth initiatives to sustain top-line momentum. It is also boosting presence in emerging markets. However, the company is struggling with rising input costs. In the first quarter, adjusted operating profit fell nearly 7% year over year due to increased distribution and input costs. This along with adverse currency impacts, and higher interests and tax rate weighed on the bottom line. Moreover, the company trimmed the outlook for 2019, considering the adverse impacts from recently announced divestitures.”
  • 5/5/2019 – Kellogg was downgraded by analysts at ValuEngine from a “hold” rating to a “sell” rating.
  • 4/29/2019 – Kellogg was upgraded by analysts at ValuEngine from a “sell” rating to a “hold” rating.
  • 4/23/2019 – Kellogg was downgraded by analysts at Zacks Investment Research from a “hold” rating to a “sell” rating. According to Zacks, “Kellogg’s shares declined in the past sixmonths. The company is battling high costs related to brand enhancement, which dented earnings in the fourth quarter of 2018, and also weighed on the outlook for 2019. Markedly, high investments, mix shifts and cost inflation related to expansion of other pack formats and networks are likely to dent adjusted operating profit in 2019. Also, the company is expected to face currency woes. Nevertheless, the company’s sales picture looks bright, owing to its solid buyouts that boosted the top line in the fourth quarter of 2018. Further, Kellogg expects revenues to grow about 3-4% in 2019, backed by Multipro’s consolidation and organic sales growth. Also, the company’s revenue-growth management efforts are likely to fuel volumes and price/mix. Additionally, Kellogg’s savings from productivity enhancement efforts are noteworthy.”
  • 4/16/2019 – Kellogg was downgraded by analysts at Zacks Investment Research from a “hold” rating to a “sell” rating. According to Zacks, “Kellogg’s shares declined in the past three months. The company is battling high costs related to brand enhancement, which dented earnings in the fourth quarter of 2018, and also weighed on the outlook for 2019. Markedly, high investments, mix shifts and cost inflation related to expansion of other pack formats and networks are likely to dent adjusted operating profit in 2019. Also, the company is expected to face currency woes. Nevertheless, the company’s sales picture looks bright, owing to its solid buyouts that boosted the top line in the fourth quarter of 2018. Further, Kellogg expects revenues to grow about 3-4% in 2019, backed by Multipro’s consolidation and organic sales growth. Also, the company’s revenue-growth management efforts are likely to fuel volumes and price/mix. Additionally, Kellogg’s savings from productivity enhancement efforts are noteworthy.”
  • 4/10/2019 – Kellogg was upgraded by analysts at Zacks Investment Research from a “sell” rating to a “hold” rating. According to Zacks, “Kellogg’s shares have gained in the past month. The company’s sales picture looks bright, owing to its solid buyouts that boosted the top line in the fourth quarter of 2018. Further, Kellogg expects revenues to grow about 3-4% in 2019, backed by Multipro’s consolidation and organic sales growth. Also, the company’s revenue-growth management efforts are likely to fuel volumes and price/mix. Additionally, Kellogg’s savings from productivity enhancement efforts are noteworthy. However, the company is battling high costs related to brand enhancement, which dented earnings in the fourth quarter and also weighed on the outlook for 2019. Markedly, high investments, mix shifts and cost inflation related to expansion of other pack formats and networks are likely to dent adjusted operating profit in 2019. Also, the company is expected to face currency woes.”
  • 4/5/2019 – Kellogg had its price target lowered by analysts at Piper Jaffray Companies from $69.00 to $64.00. They now have an “overweight” rating on the stock.
  • 4/2/2019 – Kellogg was given a new $56.00 price target on by analysts at Morgan Stanley. They now have a “hold” rating on the stock.

NYSE K opened at $57.02 on Monday. The stock has a market cap of $19.42 billion, a P/E ratio of 13.17, a PEG ratio of 3.27 and a beta of 0.56. Kellogg has a 52-week low of $53.14 and a 52-week high of $74.98. The company has a debt-to-equity ratio of 2.75, a current ratio of 0.68 and a quick ratio of 0.41.

Kellogg (NYSE:K) last posted its quarterly earnings results on Thursday, May 2nd. The company reported $1.01 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.95 by $0.06. Kellogg had a net margin of 8.59% and a return on equity of 43.13%. The firm had revenue of $3.52 billion during the quarter, compared to analysts’ expectations of $3.53 billion. During the same period in the prior year, the company posted $1.19 earnings per share. The firm’s revenue for the quarter was up 3.6% on a year-over-year basis. As a group, sell-side analysts predict that Kellogg will post 3.88 EPS for the current fiscal year.

The business also recently announced a quarterly dividend, which will be paid on Friday, June 14th. Shareholders of record on Monday, June 3rd will be issued a $0.56 dividend. The ex-dividend date is Friday, May 31st. This represents a $2.24 dividend on an annualized basis and a yield of 3.93%. Kellogg’s dividend payout ratio (DPR) is presently 51.73%.

In other Kellogg news, major shareholder Kellogg W. K. Foundation Trust sold 100,000 shares of the stock in a transaction dated Monday, March 11th. The shares were sold at an average price of $53.98, for a total value of $5,398,000.00. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Over the last ninety days, insiders sold 600,000 shares of company stock valued at $33,977,000. 0.09% of the stock is currently owned by corporate insiders.

Institutional investors have recently modified their holdings of the business. Acima Private Wealth LLC purchased a new position in Kellogg in the fourth quarter valued at about $25,000. Bruderman Asset Management LLC increased its holdings in Kellogg by 275.0% in the fourth quarter. Bruderman Asset Management LLC now owns 435 shares of the company’s stock valued at $25,000 after buying an additional 319 shares in the last quarter. Oregon Public Employees Retirement Fund increased its holdings in Kellogg by 5,672.3% in the fourth quarter. Oregon Public Employees Retirement Fund now owns 1,568,573 shares of the company’s stock valued at $28,000 after buying an additional 1,541,399 shares in the last quarter. Murphy Pohlad Asset Management LLC purchased a new position in Kellogg in the fourth quarter valued at about $28,000. Finally, ERTS Wealth Advisors LLC purchased a new position in Kellogg in the fourth quarter valued at about $34,000. 87.86% of the stock is owned by institutional investors.

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

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