Kellanova (NYSE:K) Stock Rating Lowered by Wall Street Zen

Key Points

• Analysts at Wall Street Zen have downgraded Kellanova from a "hold" rating to a "sell" rating.
• The company reported a quarterly earnings of $0.94 EPS, missing estimates by $0.05, while revenue showed a slight 0.3% year-over-year increase.
• Insiders, including the Kellogg W. K. Foundation Trust, have sold a significant amount of stock, indicating a decrease in their positions within the company.

Wall Street Zen downgraded shares of Kellanova (NYSE:K - Free Report) from a hold rating to a sell rating in a research note issued to investors on Saturday morning.

A number of other analysts have also recently commented on the company. JPMorgan Chase & Co. initiated 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. 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. Five equities research analysts have rated the stock with a Hold rating, According to MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus target price of $83.38.

Kellanova Price Performance

K stock traded down $0.06 during trading on Friday, reaching $78.89. 1,269,167 shares of the company were exchanged, compared to its average volume of 2,920,771. 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 stock's 50 day moving average price is $79.76 and its 200 day moving average price is $81.26. Kellanova has a 52-week low of $77.70 and a 52-week high of $83.22. The company has a market cap of $27.43 billion, a P/E ratio of 20.71, 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 analysts' consensus estimates of $0.99 by ($0.05). Kellanova had a net margin of 10.56% and a return on equity of 32.54%. The company had revenue of $3.20 billion for the quarter, compared to analyst estimates of $3.19 billion. During the same quarter in the previous year, the business posted $1.01 earnings per share. Kellanova's revenue was up .3% on a year-over-year basis. As a group, analysts predict that Kellanova will post 3.93 earnings per share for the current fiscal year.

Kellanova Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Monday, September 15th. Stockholders of record on Tuesday, September 2nd will be paid a $0.58 dividend. The ex-dividend date of this dividend is Tuesday, September 2nd. This represents a $2.32 annualized dividend and a dividend yield of 2.9%. This is an increase from Kellanova's previous quarterly dividend of $0.57. Kellanova's dividend payout ratio is presently 59.84%.

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 dated 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 sale, 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 filing with the SEC, which can be accessed through this link. Insiders have sold 1,260,429 shares of company stock worth $100,650,980 over the last 90 days. Insiders own 1.80% of the company's stock.

Institutional Investors Weigh In On Kellanova

Hedge funds have recently made changes to their positions in the business. Kovitz Investment Group Partners LLC acquired a new position in Kellanova during the 4th quarter valued at about $363,000. Caisse DE Depot ET Placement DU Quebec raised its position in Kellanova by 839.2% during the fourth quarter. Caisse DE Depot ET Placement DU Quebec now owns 68,128 shares of the company's stock valued at $5,516,000 after buying an additional 60,874 shares during the period. Advanced Portfolio Management LLC purchased a new stake in shares of Kellanova in the fourth quarter worth approximately $1,268,000. Accredited Wealth Management LLC purchased a new position in shares of Kellanova during the 4th quarter valued at $36,000. Finally, Absolute Gestao de Investimentos Ltda. acquired a new position in Kellanova in the 4th quarter worth about $11,741,000. Institutional investors own 83.87% of the company's stock.

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.