Its Stock Has Paid Off Big Time For Kellogg Company

Kellogg Company (NYSE: K) stock jumped 2.01% on Friday to $72.91 against a previous-day closing price of $71.47. With 2.97 million shares changed hands, the volume of the stock remained heavier than its average volume of 2.5 million shares. During the session, the Packaged Foods company that operates in wider Consumer Defensive sector, reached to the highest price of $74.09 whereas the lowest price it dropped to was $72.14. The 52-week range on K shows that it touched its highest point at $76.99 and its lowest point at $59.54 during that stretch. It currently has a 1-year price target of $74.04. With its current market cap of 24.54 billion, K has annualized dividend of $2.36 while the current yield stands at 3.24%. Beta for the stock currently stands at 0.44.

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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 K was up-trending over the past week, with a rise of 3.40%, but this was down by -3.58% over a month. Three-month performance surged to 7.35% while six-month performance rose 19.37%. The stock gained 16.14% in the past year, while it has gained 13.18% so far this year. A look at the trailing 12-month EPS for K yields 4.33 with Next year EPS estimates of 4.29. For the next quarter, that number is 0.97. This implies an EPS growth rate of 16.40% for this year and 3.67% for next year. EPS is expected to grow by 2.30% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 17.00%.

Float and Shares Shorts:

At present, 339.00 million K shares are outstanding with a float of 315.95 million shares on hand for trading. On Jul 14, 2022, short shares totaled 14.9 million, which was 4.41% higher than short shares on Jun 14, 2022. In addition to Mr. Steven A. Cahillane as the firm’s Chairman, CEO & Pres, Mr. Amit Banati serves as its Sr. VP, CFO & Principal Financial Officer.

Institutional Ownership:

Through their ownership of 87.28% of K’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 48.53% of K, in contrast to 45.73% held by mutual funds. Shares owned by individuals account for 37.71%. As the largest shareholder in K with 16.72% of the stake, Bank of New York Mellon Trust Co holds 56,877,991 shares worth 56,877,991. A second-largest stockholder of K, The Vanguard Group, Inc., holds 28,627,194 shares, controlling over 8.42% of the firm’s shares. KeyBank, NA is the third largest shareholder in K, holding 21,110,564 shares or 6.21% stake. With a 2.21% stake in K, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 7,497,913 shares are owned by the mutual fund manager. The Vanguard Mid Cap Index Fund, which owns about 1.71% of K stock, is the second-largest Mutual Fund holder. It holds 5,817,928 shares valued at 423.2 million. Vanguard 500 Index Fund holds 1.66% of the stake in K, owning 5,656,153 shares worth 411.43 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for K since 21 analysts follow the stock currently. There are 2 analysts who recommend BUY ratings, while 2 suggest SELL ratings. Of the remaining analysts, 14 believe that the stock is worth HOLDING, 1 give it an OVERWEIGHT rating, and 2 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With K analysts setting a high price target of $82.00 and a low target of $57.00, the average target price over the next 12 months is $73.72. Based on these targets, K could surge 12.47% to reach the target high and fall by -21.82% to reach the target low. Reaching the average price target will result in a growth of 1.11% 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. K will report FY 2022 earnings on 02/09/2023. Analysts have provided yearly estimates in a range of $4.20 being high and $4.01 being low. For K, this leads to a yearly average estimate of $4.13. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Kellogg Company surprised analysts by $0.13 when it reported $1.18 EPS against a consensus estimate of $1.05. The surprise factor in the prior quarter was $0.17. Based on analyst estimates, the high estimate for the next quarter is $1.04 and the low estimate is $0.88. The average estimate for the next quarter is thus $0.97.

Summary of Insider Activity:

Insiders traded K stock several times over the past three months with 1 Buys and 5 Sells. In these transactions, 27,061 shares were bought while 595,383 shares were sold. The number of buy transactions has increased to 45 while that of sell transactions has risen to 41 over the past year. The total number of shares bought during that period was 291,008 while 2,376,210 shares were sold.

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