Kellanova (NYSE:K) Reaches New 52-Week Low - Here's What Happened

Key Points

• Kellanova's share price reached a new 52-week low, trading as low as $76.48 before closing at $76.97 on Thursday, with a trading volume of over 3.74 million shares.
• Despite recent challenges, Kellanova announced an increase in its quarterly dividend to $0.58 per share, reflecting a positive change in shareholder returns.
• Several analysts have varied opinions on Kellanova, with Citigroup and JPMorgan maintaining a "neutral" rating while Wall Street Zen downgraded it to a "sell," and the average price target for the stock stands at $83.38.

Kellanova (NYSE:K - Get Free Report)'s share price hit a new 52-week low during trading on Thursday . The stock traded as low as $76.48 and last traded at $76.97, with a volume of 3747015 shares changing hands. The stock had previously closed at $77.03.

Analyst Upgrades and Downgrades

K has been the subject of a number of research analyst reports. Citigroup raised shares of 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 note on Wednesday, August 20th. They issued a "neutral" rating and a $83.50 target price for the company. Finally, Wall Street Zen lowered Kellanova from a "hold" rating to a "sell" rating in a research note on Sunday. Five analysts have rated the stock with a Hold rating, According to MarketBeat, the stock has an average rating of "Hold" and an average price target of $83.38.

Kellanova Price Performance

The stock has a 50 day simple moving average of $79.51 and a two-hundred day simple moving average of $80.85. 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 firm has a market cap of $26.76 billion, a PE ratio of 20.20, a price-to-earnings-growth ratio of 4.80 and a beta of 0.27.

Kellanova (NYSE:K - Get Free Report) last announced its quarterly earnings results on Thursday, July 31st. The company reported $0.94 earnings per share for the quarter, missing the consensus estimate of $0.99 by ($0.05). The company had revenue of $3.20 billion for the quarter, compared to analysts' expectations of $3.19 billion. Kellanova had a net margin of 10.56% and a return on equity of 32.54%. The firm's revenue 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. Sell-side analysts expect that Kellanova will post 3.93 earnings per share for the current year.

Kellanova Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Monday, September 15th. Shareholders of record on Tuesday, September 2nd were issued a $0.58 dividend. The ex-dividend date of this dividend was Tuesday, September 2nd. This is a positive change from Kellanova's previous quarterly dividend of $0.57. This represents a $2.32 dividend on an annualized basis and a yield of 3.0%. Kellanova's dividend payout ratio is presently 60.89%.

Insiders Place Their Bets

In related news, major shareholder Kellogg W. K. Foundation Trust sold 114,599 shares of Kellanova stock in a transaction dated Thursday, August 28th. The stock was sold at an average price of $79.55, for a total value of $9,116,350.45. Following the completion of the transaction, the insider owned 45,097,438 shares in the company, valued at $3,587,501,192.90. The trade was a 0.25% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Insiders have sold a total of 916,680 shares of company stock valued at $73,093,769 over the last three months. 1.80% of the stock is currently owned by insiders.

Institutional Trading of Kellanova

A number of institutional investors and hedge funds have recently made changes to their positions in K. Norges Bank purchased a new stake in shares of Kellanova during the second quarter worth about $294,749,000. Pentwater Capital Management LP increased its stake in Kellanova by 39.0% during the 1st quarter. Pentwater Capital Management LP now owns 8,000,000 shares of the company's stock worth $659,920,000 after buying an additional 2,245,000 shares in the last quarter. JPMorgan Chase & Co. increased its stake in Kellanova by 66.3% during the 1st quarter. JPMorgan Chase & Co. now owns 2,413,007 shares of the company's stock worth $199,049,000 after buying an additional 962,172 shares in the last quarter. LMR Partners LLP increased its stake in Kellanova by 1,866.3% during the 2nd quarter. LMR Partners LLP now owns 961,906 shares of the company's stock worth $76,500,000 after buying an additional 912,986 shares in the last quarter. Finally, Bank of America Corp DE increased its position in shares of Kellanova by 21.6% during the second quarter. Bank of America Corp DE now owns 4,055,514 shares of the company's stock worth $322,535,000 after purchasing an additional 720,218 shares in the last quarter. 83.87% of the stock is currently owned by hedge funds and other institutional investors.

About Kellanova

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.

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