Wall Street Zen Downgrades Kellanova (NYSE:K) to Sell

Key Points

• Kellanova has been downgraded by Wall Street Zen from a "hold" rating to a "sell" rating, reflecting a bearish sentiment among analysts.
• JPMorgan Chase & Co. and Citigroup have recently issued "neutral" ratings for Kellanova, both setting a price target of $83.50.
• Insiders, including the Kellogg W. K. Foundation Trust, have sold over 1 million shares of Kellanova stock in the past three months, indicating potential shifts in confidence among major shareholders.

Kellanova (NYSE:K - Get Free Report) was downgraded by analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a research report issued to clients and investors on Sunday.

Other equities analysts also recently issued reports about the company. Citigroup raised Kellanova to a "neutral" rating and set a $83.50 price target for the company in a report on Thursday, May 29th. JPMorgan Chase & Co. assumed coverage on Kellanova in a research report on Wednesday, August 20th. They set a "neutral" rating and a $83.50 price objective for the company. Five analysts have rated the stock with a Hold rating, According to MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus target price of $83.38.

Kellanova Stock Performance

Shares of NYSE K traded down $0.81 during midday trading on Friday, hitting $77.40. The company's stock had a trading volume of 6,204,940 shares, compared to its average volume of 2,944,833. The company has a current ratio of 0.68, a quick ratio of 0.45 and a debt-to-equity ratio of 1.03. Kellanova has a one year low of $77.20 and a one year high of $83.22. The stock has a fifty day moving average price of $79.67 and a 200 day moving average price of $80.95. The firm has a market capitalization of $26.91 billion, a price-to-earnings ratio of 20.31, a P/E/G ratio of 4.82 and a beta of 0.27.

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

Insider Buying and Selling

In related news, major shareholder Kellogg W. K. Foundation Trust sold 114,599 shares of the company'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 owned 45,097,438 shares in the company, valued at approximately $3,587,501,192.90. This represents a 0.25% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders have sold 1,031,263 shares of company stock worth $82,079,367 over the last three months. 1.80% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Kellanova

Several large investors have recently modified their holdings of K. Osaic Holdings Inc. increased its position in Kellanova by 7.4% during the 2nd quarter. Osaic Holdings Inc. now owns 47,664 shares of the company's stock worth $3,795,000 after purchasing an additional 3,292 shares in the last quarter. Orion Porfolio Solutions LLC boosted its stake in Kellanova by 24.9% during the second quarter. Orion Porfolio Solutions LLC now owns 10,769 shares of the company's stock valued at $856,000 after buying an additional 2,149 shares in the last quarter. Thrivent Financial for Lutherans lifted its holdings in shares of Kellanova by 39.2% during the second quarter. Thrivent Financial for Lutherans now owns 15,374 shares of the company's stock valued at $1,223,000 after purchasing an additional 4,330 shares during the last quarter. Stance Capital LLC acquired a new position in Kellanova in the 2nd quarter worth about $1,856,000. Finally, Advisory Services Network LLC increased its holdings in shares of Kellanova by 5.8% during the 2nd quarter. Advisory Services Network LLC now owns 4,782 shares of the company's stock valued at $382,000 after acquiring an additional 263 shares during the last quarter. 83.87% of the stock is owned by institutional investors and hedge funds.

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.