WK Kellogg (NYSE:KLG) Reaches New 52-Week Low on Disappointing Earnings

WK Kellogg Co (NYSE:KLG - Get Free Report)'s stock price hit a new 52-week low on Tuesday following a weaker than expected earnings announcement. The company traded as low as $14.80 and last traded at $16.29, with a volume of 380101 shares traded. The stock had previously closed at $17.36.

The company reported $0.20 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.41 by ($0.21). The business had revenue of $667.00 million during the quarter, compared to the consensus estimate of $677.91 million. WK Kellogg had a net margin of 2.66% and a return on equity of 39.81%. The business's quarterly revenue was down 6.2% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.37 earnings per share.

WK Kellogg Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, June 13th. Investors of record on Friday, May 30th will be issued a $0.165 dividend. This represents a $0.66 dividend on an annualized basis and a dividend yield of 3.88%. The ex-dividend date is Friday, May 30th. WK Kellogg's dividend payout ratio is currently 81.48%.

Wall Street Analyst Weigh In

KLG has been the topic of a number of recent research reports. Barclays decreased their price objective on WK Kellogg from $19.00 to $16.00 and set an "underweight" rating on the stock in a research report on Friday, January 17th. Jefferies Financial Group lowered their price objective on WK Kellogg from $19.00 to $16.00 and set a "hold" rating for the company in a research report on Tuesday, January 28th. Morgan Stanley began coverage on shares of WK Kellogg in a research report on Monday, March 24th. They set an "underweight" rating and a $18.00 target price on the stock. Finally, Stifel Nicolaus lowered their price target on shares of WK Kellogg from $19.00 to $18.00 and set a "hold" rating for the company in a research report on Friday, January 24th. Four analysts have rated the stock with a sell rating and three have assigned a hold rating to the company's stock. According to MarketBeat.com, the company presently has a consensus rating of "Reduce" and an average target price of $16.86.

Institutional Trading of WK Kellogg

A number of institutional investors and hedge funds have recently modified their holdings of the stock. Capital International Investors raised its holdings in WK Kellogg by 149.8% in the fourth quarter. Capital International Investors now owns 4,186,763 shares of the company's stock worth $75,320,000 after purchasing an additional 2,510,779 shares during the period. LSV Asset Management grew its holdings in shares of WK Kellogg by 280.5% in the 1st quarter. LSV Asset Management now owns 3,038,537 shares of the company's stock valued at $60,558,000 after buying an additional 2,239,966 shares during the period. Jupiter Asset Management Ltd. increased its position in shares of WK Kellogg by 172.9% in the 4th quarter. Jupiter Asset Management Ltd. now owns 2,494,881 shares of the company's stock valued at $44,883,000 after buying an additional 1,580,704 shares in the last quarter. Wellington Management Group LLP acquired a new stake in WK Kellogg during the 4th quarter worth $14,737,000. Finally, Universal Beteiligungs und Servicegesellschaft mbH lifted its holdings in WK Kellogg by 254.0% during the first quarter. Universal Beteiligungs und Servicegesellschaft mbH now owns 392,461 shares of the company's stock worth $7,822,000 after acquiring an additional 281,600 shares in the last quarter. 95.74% of the stock is owned by institutional investors.

WK Kellogg Trading Down 0.6 %

The business has a 50 day simple moving average of $18.95 and a 200-day simple moving average of $18.43. The stock has a market capitalization of $1.47 billion, a price-to-earnings ratio of 21.01, a PEG ratio of 2.01 and a beta of 0.54. The company has a debt-to-equity ratio of 1.45, a current ratio of 0.74 and a quick ratio of 0.32.

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.