WK Kellogg (NYSE:KLG) Reaches New 1-Year Low Following Weak Earnings

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

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

WK Kellogg Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, June 13th. Stockholders of record on Friday, May 30th will be issued a $0.165 dividend. The ex-dividend date of this dividend is Friday, May 30th. This represents a $0.66 annualized dividend and a dividend yield of 3.88%. WK Kellogg's dividend payout ratio (DPR) is 81.48%.

Wall Street Analysts Forecast Growth

Several equities research analysts have commented on KLG shares. Morgan Stanley began coverage on shares of WK Kellogg in a research report on Monday, March 24th. They issued an "underweight" rating and a $18.00 price target on the stock. Barclays dropped their target price on shares of WK Kellogg from $19.00 to $16.00 and set an "underweight" rating on the stock in a report on Friday, January 17th. Stifel Nicolaus reduced their target price on shares of WK Kellogg from $19.00 to $18.00 and set a "hold" rating for the company in a report on Friday, January 24th. Finally, Jefferies Financial Group dropped their price target on WK Kellogg from $19.00 to $16.00 and set a "hold" rating on the stock in a report on Tuesday, January 28th. Four analysts have rated the stock with a sell rating and three have issued a hold rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Reduce" and an average target price of $16.86.

Institutional Investors Weigh In On WK Kellogg

Several hedge funds have recently bought and sold shares of the business. Vanguard Group Inc. grew its position in WK Kellogg by 4.6% during the first quarter. Vanguard Group Inc. now owns 5,640,453 shares of the company's stock valued at $112,414,000 after purchasing an additional 245,555 shares in the last quarter. Keybank National Association OH increased its stake in shares of WK Kellogg by 1.1% in the fourth quarter. Keybank National Association OH now owns 4,925,470 shares of the company's stock worth $88,609,000 after acquiring an additional 52,129 shares during the last quarter. Capital International Investors raised its holdings in shares of WK Kellogg by 149.8% during the fourth quarter. Capital International Investors now owns 4,186,763 shares of the company's stock worth $75,320,000 after acquiring an additional 2,510,779 shares in the last quarter. LSV Asset Management boosted its position in WK Kellogg by 280.5% during 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. Finally, Jupiter Asset Management Ltd. grew its stake 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 in the last quarter. 95.74% of the stock is owned by hedge funds and other institutional investors.

WK Kellogg Stock Performance

The firm has a 50-day simple moving average of $18.95 and a two-hundred day simple moving average of $18.44. The company has a current ratio of 0.74, a quick ratio of 0.32 and a debt-to-equity ratio of 1.45. The company has a market capitalization of $1.47 billion, a price-to-earnings ratio of 21.01, a price-to-earnings-growth ratio of 2.01 and a beta of 0.54.

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.