Canada Pension Plan Investment Board Cuts Stock Holdings in Kellanova $K

Key Points

• The Canada Pension Plan Investment Board has reduced its stake in Kellanova by 49.5%, selling 435,500 shares and now holding 444,157 shares valued at approximately $36.6 million.
• Kellanova has announced a quarterly dividend increase to $0.58 per share, marking a 2.9% dividend yield with a payout ratio of around 59.84%.
• The company's recent earnings report showed earnings per share of $0.94, which was below analysts' expectations, although revenue slightly exceeded estimates, coming in at $3.20 billion.

Canada Pension Plan Investment Board decreased its stake in shares of Kellanova (NYSE:K - Free Report) by 49.5% during the first quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 444,157 shares of the company's stock after selling 435,500 shares during the period. Canada Pension Plan Investment Board owned about 0.13% of Kellanova worth $36,639,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Grove Bank & Trust bought a new position in Kellanova during the first quarter valued at approximately $25,000. Financial Network Wealth Advisors LLC bought a new position in Kellanova during the first quarter valued at approximately $25,000. MorganRosel Wealth Management LLC bought a new position in Kellanova during the first quarter valued at approximately $27,000. Accredited Wealth Management LLC bought a new position in Kellanova during the fourth quarter valued at approximately $36,000. Finally, Minot DeBlois Advisors LLC bought a new position in Kellanova in the fourth quarter worth approximately $42,000. Institutional investors own 83.87% of the company's stock.

Analyst Ratings Changes

Several research analysts have weighed in on K shares. Citigroup upgraded shares of Kellanova to a "neutral" rating and set a $83.50 price target on the stock in a research report on Thursday, May 29th. Wall Street Zen downgraded shares of Kellanova from a "hold" rating to a "sell" rating in a research report on Saturday, August 30th. Finally, JPMorgan Chase & Co. started coverage on shares of Kellanova in a research report on Wednesday, August 20th. They issued a "neutral" rating and a $83.50 price target on the stock. Five investment analysts have rated the stock with a Hold rating, According to data from MarketBeat, the stock currently has an average rating of "Hold" and a consensus price target of $83.38.

Insiders Place Their Bets

In related news, major shareholder Kellogg W. K. Foundation Trust sold 114,599 shares of the firm's stock in a transaction on Thursday, August 28th. The shares were sold at an average price of $79.55, for a total transaction of $9,116,350.45. Following the completion of the transaction, the insider directly owned 45,097,438 shares of the company's stock, valued at approximately $3,587,501,192.90. This trade represents a 0.25% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Insiders have sold 1,260,429 shares of company stock worth $100,650,980 over the last three months. Company insiders own 1.80% of the company's stock.

Kellanova Price Performance

Shares of NYSE K traded up $0.48 during midday trading on Thursday, reaching $79.52. The stock had a trading volume of 5,741,475 shares, compared to its average volume of 2,948,201. The stock has a 50-day moving average of $79.78 and a 200-day moving average of $81.25. The company has a debt-to-equity ratio of 1.03, a quick ratio of 0.45 and a current ratio of 0.68. The company has a market capitalization of $27.65 billion, a price-to-earnings ratio of 20.87, a price-to-earnings-growth ratio of 4.95 and a beta of 0.27. Kellanova has a 12-month low of $77.70 and a 12-month high of $83.22.

Kellanova (NYSE:K - Get Free Report) last announced its quarterly earnings data on Thursday, July 31st. The company reported $0.94 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.99 by ($0.05). The firm had revenue of $3.20 billion during the quarter, compared to analysts' expectations of $3.19 billion. Kellanova had a return on equity of 32.54% and a net margin of 10.56%.The business's revenue for the quarter was up .3% on a year-over-year basis. During the same period last year, the company earned $1.01 earnings per share. As a group, research analysts anticipate that Kellanova will post 3.93 EPS for the current fiscal year.

Kellanova Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, September 15th. Investors of record on Tuesday, September 2nd will be paid a dividend of $0.58 per share. The ex-dividend date of this dividend is Tuesday, September 2nd. This is a positive change from Kellanova's previous quarterly dividend of $0.57. This represents a $2.32 annualized dividend and a yield of 2.9%. Kellanova's dividend payout ratio is 59.84%.

Kellanova Profile

Kellanova, together with its subsidiaries, manufactures and markets snacks and convenience foods in North America, Europe, Latin America, the Asia Pacific, the Middle East, Australia, and Africa. Its principal products include crackers, crisps, savory snacks, toaster pastries, cereal bars, granola bars and bites, ready-to-eat cereals, frozen waffles, veggie foods, and noodles.