WK Kellogg (NYSE:KLG) Trading Down 6.6% Following Weak Earnings

Shares of WK Kellogg Co (NYSE:KLG - Get Free Report) traded down 6.6% during trading on Wednesday following a dissappointing earnings announcement. The company traded as low as $16.34 and last traded at $16.75. 429,372 shares changed hands during mid-day trading, a decline of 57% from the average session volume of 991,401 shares. The stock had previously closed at $17.93.

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

WK Kellogg Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, June 13th. Stockholders of record on Friday, May 30th will be paid a dividend of $0.165 per share. The ex-dividend date of this dividend is Friday, May 30th. This represents a $0.66 annualized dividend and a dividend yield of 3.75%. WK Kellogg's dividend payout ratio (DPR) is currently 103.13%.

Wall Street Analyst Weigh In

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

Hedge Funds Weigh In On WK Kellogg

Several institutional investors and hedge funds have recently added to or reduced their stakes in KLG. Charles Schwab Investment Management Inc. boosted its stake in shares of WK Kellogg by 5.5% in the 1st quarter. Charles Schwab Investment Management Inc. now owns 1,308,331 shares of the company's stock valued at $26,075,000 after purchasing an additional 68,285 shares during the last quarter. Vanguard Group Inc. boosted its stake in shares of WK Kellogg by 4.6% in the 1st 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 during the last quarter. PNC Financial Services Group Inc. boosted its stake in shares of WK Kellogg by 6.0% in the 1st quarter. PNC Financial Services Group Inc. now owns 11,939 shares of the company's stock valued at $238,000 after purchasing an additional 679 shares during the last quarter. Jupiter Asset Management Ltd. boosted its stake in shares of WK Kellogg by 17.8% in the 1st 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. Finally, LSV Asset Management boosted its stake 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 purchasing an additional 2,239,966 shares during the last quarter. 95.74% of the stock is currently owned by institutional investors and hedge funds.

WK Kellogg Stock Performance

The company has a debt-to-equity ratio of 1.45, a quick ratio of 0.32 and a current ratio of 0.74. The stock's 50 day moving average price is $18.95 and its 200 day moving average price is $18.44. The company has a market capitalization of $1.52 billion, a P/E ratio of 21.71, 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.