JPMorgan Chase & Co. Initiates Coverage on Kellanova (NYSE:K)

Key Points

• JPMorgan Chase & Co. has reiterated a "neutral" rating for Kellanova with a target price of $83.50, indicating a potential upside of 4.30% from its current trading price.
• The latest earnings report revealed Kellanova's earnings per share (EPS) of $0.94, which was below analysts' expectations of $0.99.
• Insider selling occurred recently as the Kellogg W. K. Foundation Trust sold 114,583 shares of Kellanova for approximately $9.17 million, reducing its stake by 0.25%.

JPMorgan Chase & Co. assumed coverage on shares of Kellanova (NYSE:K - Free Report) in a report published on Wednesday, MarketBeat Ratings reports. The brokerage issued a neutral rating and a $83.50 price target on the stock.

Other equities analysts have also issued reports about the company. Wall Street Zen lowered Kellanova from a "buy" rating to a "hold" rating in a research note on Friday, May 2nd. Citigroup raised Kellanova to a "neutral" rating and set a $83.50 target price for the company in a research report on Thursday, May 29th. Six equities research analysts have rated the stock with a Hold rating, According to data from MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus price target of $83.40.

Kellanova Stock Performance

NYSE K traded up $0.1250 during trading on Wednesday, hitting $80.1150. The company's stock had a trading volume of 2,223,125 shares, compared to its average volume of 2,078,380. Kellanova has a 52 week low of $77.70 and a 52 week high of $83.22. The company has a quick ratio of 0.45, a current ratio of 0.68 and a debt-to-equity ratio of 1.03. The firm has a market cap of $27.85 billion, a P/E ratio of 21.03, a price-to-earnings-growth ratio of 4.96 and a beta of 0.27. The firm has a 50 day moving average price of $79.70 and a 200 day moving average price of $81.40.

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 the consensus estimate of $0.99 by ($0.05). The company had revenue of $3.20 billion during the quarter, compared to analyst estimates of $3.19 billion. Kellanova had a return on equity of 32.54% and a net margin of 10.56%.The company's revenue was up .3% on a year-over-year basis. During the same quarter in the previous year, the business posted $1.01 EPS. Equities research analysts forecast that Kellanova will post 3.93 earnings per share for the current fiscal year.

Kellanova Increases Dividend

The company also recently announced 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. 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 payout ratio is currently 60.89%.

Insider Activity

In related news, major shareholder Kellogg W. K. Foundation Trust sold 114,583 shares of Kellanova stock in a transaction dated Thursday, August 21st. The shares were sold at an average price of $79.98, for a total transaction of $9,164,348.34. Following the completion of the transaction, the insider directly owned 45,212,037 shares of the company's stock, valued at $3,616,058,719.26. This trade represents a 0.25% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. In the last ninety days, insiders have sold 1,260,413 shares of company stock worth $100,975,123. Company insiders own 1.80% of the company's stock.

Institutional Trading of Kellanova

Several hedge funds have recently modified their holdings of the company. Financial Counselors Inc. bought a new stake in Kellanova during the 1st quarter worth approximately $522,000. IFM Investors Pty Ltd raised its holdings in shares of Kellanova by 11.6% in the first quarter. IFM Investors Pty Ltd now owns 57,241 shares of the company's stock valued at $4,620,000 after buying an additional 5,957 shares during the last quarter. Retirement Guys Formula LLC acquired a new position in Kellanova during the 1st quarter worth about $934,000. Syquant Capital Sas lifted its position in Kellanova by 39.9% during the 1st quarter. Syquant Capital Sas now owns 511,400 shares of the company's stock worth $42,185,000 after buying an additional 145,900 shares in the last quarter. Finally, Mirae Asset Global Investments Co. Ltd. grew its holdings in Kellanova by 12.6% during the 1st quarter. Mirae Asset Global Investments Co. Ltd. now owns 33,596 shares of the company's stock worth $2,771,000 after acquiring an additional 3,747 shares during the last quarter. Institutional investors and hedge funds own 83.87% of the company's stock.

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.