WK Kellogg Co. (NYSE:KLG) Given Average Recommendation of "Reduce" by Analysts

Key Points

• WK Kellogg Co. has received a consensus rating of "Reduce" from analysts, with two sell recommendations and eight holds; the average target price is $20.8750.
• Recent earnings reports indicate that WK Kellogg missed EPS estimates at $0.25 for the last quarter, with revenue falling 8.8% year-over-year to $611.52 million.
• The company announced a quarterly dividend of $0.165 per share, representing a 2.9% dividend yield and a high dividend payout ratio of 178.38%.

WK Kellogg Co. (NYSE:KLG - Get Free Report) has received a consensus rating of "Reduce" from the ten ratings firms that are currently covering the stock, MarketBeat Ratings reports. Two analysts have rated the stock with a sell rating and eight have assigned a hold rating to the company. The average 1 year target price among analysts that have covered the stock in the last year is $20.8750.

A number of brokerages have recently commented on KLG. BNP Paribas set a $23.00 target price on shares of WK Kellogg in a research note on Friday, July 11th. Zacks Research raised shares of WK Kellogg from a "strong sell" rating to a "hold" rating in a research note on Monday, September 8th. JPMorgan Chase & Co. began coverage on shares of WK Kellogg in a research report on Wednesday, August 20th. They issued a "neutral" rating and a $23.00 target price for the company. Evercore ISI lifted their price target on shares of WK Kellogg from $19.00 to $23.00 and gave the company an "in-line" rating in a report on Friday, July 11th. Finally, Cowen raised shares of WK Kellogg from a "sell" rating to a "hold" rating in a report on Friday, July 11th.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Rosenberg Matthew Hamilton raised its position in shares of WK Kellogg by 594.1% during the 2nd quarter. Rosenberg Matthew Hamilton now owns 2,353 shares of the company's stock worth $38,000 after buying an additional 2,014 shares in the last quarter. Rexford Capital Inc. bought a new stake in shares of WK Kellogg during the 2nd quarter worth about $42,000. Curat Global LLC bought a new stake in shares of WK Kellogg during the 1st quarter worth about $66,000. Whittier Trust Co. of Nevada Inc. raised its position in shares of WK Kellogg by 1,030.8% during the 1st quarter. Whittier Trust Co. of Nevada Inc. now owns 3,675 shares of the company's stock worth $73,000 after buying an additional 3,350 shares in the last quarter. Finally, Quantbot Technologies LP bought a new stake in shares of WK Kellogg during the 1st quarter worth about $87,000. 95.74% of the stock is owned by institutional investors and hedge funds.

WK Kellogg Stock Performance

NYSE KLG remained flat at $22.98 during mid-day trading on Thursday. 451,626 shares of the company were exchanged, compared to its average volume of 1,002,534. WK Kellogg has a 1 year low of $14.80 and a 1 year high of $23.56. The firm's fifty day simple moving average is $23.06 and its two-hundred day simple moving average is $19.71. The firm has a market capitalization of $1.99 billion, a PE ratio of 19.48 and a beta of 0.24. The company has a debt-to-equity ratio of 1.97, a current ratio of 0.99 and a quick ratio of 0.47.

WK Kellogg (NYSE:KLG - Get Free Report) last announced its earnings results on Thursday, August 7th. The company reported $0.25 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.28 by ($0.03). The firm had revenue of $611.52 million for the quarter, compared to analyst estimates of $653.36 million. WK Kellogg had a return on equity of 31.34% and a net margin of 1.31%.The firm's revenue was down 8.8% compared to the same quarter last year. During the same quarter last year, the business posted $0.36 EPS. On average, analysts anticipate that WK Kellogg will post 1.57 EPS for the current year.

WK Kellogg Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, September 12th. Stockholders of record on Friday, August 29th were issued a $0.165 dividend. The ex-dividend date of this dividend was Friday, August 29th. This represents a $0.66 annualized dividend and a dividend yield of 2.9%. WK Kellogg's payout ratio is 178.38%.

About WK Kellogg

WK Kellogg Co operates as a food company in the United States, Canada, and the Caribbean. It manufactures, markets, and distributes ready-to-eat cereal products primarily under the Frosted Flakes, Special K, Froot Loops, Raisin Bran, Frosted Mini-Wheats, and Kashi brands. The company was formerly known as North America Cereal Co and changed its name to WK Kellogg Co in March 2023.