WK Kellogg (NYSE:KLG) Rating Increased to Hold at Zacks Research

Key Points

• WK Kellogg has been upgraded by Zacks Research from a "strong sell" rating to a "hold" rating, indicating a shift in analysts' perception of the stock.
• Several other equities analysts have also raised their ratings for WK Kellogg, with a notable target price set at $23.00 by multiple firms.
• Despite this positive rating shift, WK Kellogg reported disappointing earnings in its latest quarter, missing the consensus estimate and showing a year-over-year revenue decline of 8.8%.

WK Kellogg (NYSE:KLG - Get Free Report) was upgraded by investment analysts at Zacks Research from a "strong sell" rating to a "hold" rating in a research note issued on Monday,Zacks.com reports.

Several other equities analysts have also weighed in on KLG. Wall Street Zen raised WK Kellogg from a "sell" rating to a "hold" rating in a research note on Sunday, July 13th. BNP Paribas set a $23.00 target price on WK Kellogg in a research report on Friday, July 11th. JPMorgan Chase & Co. began coverage on WK Kellogg in a research report on Wednesday, August 20th. They issued a "neutral" rating and a $23.00 target price on the stock. TD Cowen raised WK Kellogg from a "sell" rating to a "hold" rating and boosted their price target for the stock from $14.00 to $23.00 in a research report on Monday, July 14th. Finally, Barclays reaffirmed an "underweight" rating and set a $23.00 price target (up previously from $16.00) on shares of WK Kellogg in a research report on Monday, July 14th. Eight analysts have rated the stock with a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, WK Kellogg currently has a consensus rating of "Reduce" and an average price target of $20.88.

WK Kellogg Price Performance

WK Kellogg stock opened at $22.98 on Monday. The business's 50-day simple moving average is $22.39 and its 200 day simple moving average is $19.55. The stock has a market cap of $1.99 billion, a price-to-earnings ratio of 62.11 and a beta of 0.24. WK Kellogg has a 12-month low of $14.80 and a 12-month high of $23.56. The company has a quick ratio of 0.47, a current ratio of 0.99 and a debt-to-equity ratio of 1.97.

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

Institutional Trading of WK Kellogg

Several institutional investors and hedge funds have recently modified their holdings of the business. LSV Asset Management raised its position in WK Kellogg by 280.5% in the first quarter. LSV Asset Management now owns 3,038,537 shares of the company's stock valued at $60,558,000 after purchasing an additional 2,239,966 shares during the last quarter. Wellington Management Group LLP bought a new position in WK Kellogg in the fourth quarter valued at about $14,737,000. Jupiter Asset Management Ltd. raised its position in WK Kellogg by 17.8% in the first quarter. Jupiter Asset Management Ltd. now owns 2,939,001 shares of the company's stock valued at $58,574,000 after purchasing an additional 444,120 shares during the last quarter. Credit Agricole S A raised its position in WK Kellogg by 10.4% in the first quarter. Credit Agricole S A now owns 4,287,331 shares of the company's stock valued at $85,447,000 after purchasing an additional 403,970 shares during the last quarter. Finally, Teacher Retirement System of Texas raised its position in WK Kellogg by 216.8% in the second quarter. Teacher Retirement System of Texas now owns 538,745 shares of the company's stock valued at $8,588,000 after purchasing an additional 368,674 shares during the last quarter. 95.74% of the stock is currently owned by institutional investors.

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.

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