Westchester Capital Management LLC Raises Stake in Kellanova $K

Key Points

• Westchester Capital Management LLC has increased its stake in Kellanova by 6.3% during the 1st quarter, making it the firm's second largest position.
• Kellanova recently announced a quarterly dividend increase to $0.58 per share, representing a 2.9% yield for investors of record.
• Despite a revenue increase of 0.3% year-over-year, Kellanova reported earnings per share of $0.94, missing analyst expectations by $0.05.

Westchester Capital Management LLC raised its position in shares of Kellanova (NYSE:K - Free Report) by 6.3% in the first quarter, according to its most recent filing with the SEC. The firm owned 1,701,179 shares of the company's stock after purchasing an additional 100,286 shares during the quarter. Kellanova makes up approximately 7.3% of Westchester Capital Management LLC's investment portfolio, making the stock its 2nd largest holding. Westchester Capital Management LLC owned approximately 0.49% of Kellanova worth $140,330,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds have also added to or reduced their stakes in the company. Grove Bank & Trust acquired a new stake in Kellanova during the 1st quarter valued at approximately $25,000. Financial Network Wealth Advisors LLC acquired a new stake in Kellanova during the 1st quarter valued at approximately $25,000. MorganRosel Wealth Management LLC acquired a new stake in Kellanova during the 1st quarter valued at approximately $27,000. Accredited Wealth Management LLC acquired a new stake in Kellanova during the 4th quarter valued at approximately $36,000. Finally, Minot DeBlois Advisors LLC acquired a new stake in shares of Kellanova during the 4th quarter worth approximately $42,000. Institutional investors and hedge funds own 83.87% of the company's stock.

Kellanova Stock Up 0.0%

NYSE K traded up $0.01 during mid-day trading on Friday, hitting $79.48. The company's stock had a trading volume of 3,564,768 shares, compared to its average volume of 2,009,401. The company's 50 day simple moving average is $79.73 and its 200 day simple moving average is $81.31. Kellanova has a twelve month low of $77.70 and a twelve month high of $83.22. The company has a current ratio of 0.68, a quick ratio of 0.45 and a debt-to-equity ratio of 1.03. The firm has a market capitalization of $27.63 billion, a price-to-earnings ratio of 20.86, a PEG ratio of 4.95 and a beta of 0.27.

Kellanova (NYSE:K - Get Free Report) last posted its quarterly earnings results on Thursday, July 31st. The company reported $0.94 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.99 by ($0.05). Kellanova had a net margin of 10.56% and a return on equity of 32.54%. The business had revenue of $3.20 billion during the quarter, compared to analyst estimates of $3.19 billion. During the same period in the previous year, the business posted $1.01 EPS. The business's revenue for the quarter was up .3% compared to the same quarter last year. Analysts anticipate that Kellanova will post 3.93 earnings per share for the current year.

Kellanova Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, September 15th. Investors of record on Tuesday, September 2nd will be given a $0.58 dividend. This represents a $2.32 annualized dividend and a yield of 2.9%. The ex-dividend date of this dividend is Tuesday, September 2nd. This is an increase from Kellanova's previous quarterly dividend of $0.57. Kellanova's payout ratio is 60.89%.

Insiders Place Their Bets

In other Kellanova 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 stock was sold at an average price of $79.55, for a total transaction of $9,116,350.45. Following the transaction, the insider directly owned 45,097,438 shares in the company, valued at approximately $3,587,501,192.90. This trade represents a 0.25% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. In the last quarter, insiders sold 1,260,429 shares of company stock worth $100,650,980. 1.80% of the stock is currently owned by company insiders.

Analyst Upgrades and Downgrades

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

Kellanova Company 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.