Kellogg Company (NYSE:K) has been downgraded by Pivotal Research Group on February 08 which now rates the stock as Hold compared with Buy rating suggested in the past. Analysts at Guggenheim, started covering the stock on January 23 with a Neutral rating. The stock lost favor of JP Morgan analysts who expressed their lack of confidence in it using a downgrade from Overweight to Neutral on November 14.
Kellogg Company (K) hit an intraday high Tuesday at $56.7001. The shares finished at $56.53, after trading as low as $55.6 earlier in the session. It rose 1.54% in recent trade and currently has a stock-market value of $19.79B. Trading activity significantly improved as the volume at ready counter increased to 3,692,376 shares versus 3,016,975 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 2,714,883 shares. The stock is now 4.41% above against its bear-market low of $54.14 on February 11, 2019. It has retreated -32.64% since it’s 52-week high of $74.98 reached in September. Now the market price is down -16.04% on the year and down -0.84% YTD.
K’s 50 day simple moving average (SMA 50) price is $58.72 and its 200-day simple moving average (SMA 200) price is $65.57. The company’s stock currently has a total float of 343.58M shares. Its weekly volatility is hovering around 2.58% and felt 1.7% volatility in price over a month. On the upside, the share price will test short term resistance at around $56.95. On a downside, the stock is likely to find some support, which begins at $55.85. The failure to get near-term support could push it to $55.18.
Separately, it has been reported that multiple insider activity took place at Kellogg Company (K). 10% Owner Kellogg W K Foundation Trust sold 100,000 shares for $64,831,838 in transaction occurred on 2019/02/11. After making this transaction, the 10% Owner owns a direct stake of 5,476,000 shares, worth $3,660,000,000, as per the last closing price. On 2019/01/22 Kellogg W K Foundation Trust, 10% Owner at K, dumped 100,000 shares at an average price of $58.36 per share. The selling total is valued at $3,670,000,000.
10% Owner, Kellogg W K Foundation Trust had divested 100,000 shares for $65,031,838 through a trade on 2019/01/10. Following this activity, the insider holds 5,824,000 shares worth $3,680,000,000 as of recent close. Wall Street’s most bullish Kellogg Company (NYSE:K) analysts are predicting the share price to blow past $69 per share during the next 12 months. The current median share price forecast by them is $59, suggesting that the stock could increase 4.37% in that time frame. The average price target of $59.79 calls for a nearly 5.77% increase in the stock price.
When looking at valuations, Kellogg Company (K) has a cheap P/E of 14.74x as compared to industry average of 23.37x. Moreover, it trades for 13.16 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 6.44x price/book and 1.46x price/sales. Compared to others, Kellogg Company is in a different league with regards to profitability, having net margins of 13%. To put some perspective around this, the industry’s average net margin is 8.1%. K’s ROE is 66.3%, which is also considerably better than the industry’s ROE of 14.63%. It’s also not liquid in the near term, with a current ratio of 0.8. The stock has a debt/capital of 2.93.
Shares of Kellogg Company (K) have dropped -5.9% since the company’s last earnings report. Over the past 12 fiscal quarters, Kellogg Company (NYSE:K) has topped consensus earnings estimates in 10 quarters (83%), missed earnings in 1 quarters (8%), whereas at 1 occasion EPS met analyst expectations. K last reported earnings on February 07, 2019 when it released Dec-18 results that exceeded expectations. The company raked in $0.91 per share, -69.87% change on the same period last year. That was better than consensus for $0.88. Revenue for the recent quarter stood at $3.32 billion, up 3% on last year and below the $3.32 billion predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $3.47 billion to $3.65 billion, which should be compared with $3.34 billion generated last year. EPS is seen in a range of $0.89 to $1.17, against the $1.17 reported a year ago.