Why Should You Put Kellogg Company (NYSE: K) On Your Portfolio?


    BlackRock Fund Advisors recently announced the acquisition of new stake in Kellogg Company (NYSE:K). The institutional investor has increased its shareholding in the Consumer Defensive company by 0.25% to 16.17 million shares with purchase of 39909.0 shares. This fresh investment now brings its stake to 4.72% valued currently at $1.07 billion. In addition, SSgA Funds Management, Inc. raised its holdings by 0.11 million to 13.68 million shares. And Capital Research & Management Co. has lifted its position by 5.88% or 0.7 million shares – to 12.6 million shares.

    With over 1.42 million Kellogg Company (K) shares trading Wednesday and a closing price of $68.41 on the day, the dollar volume was approximately $97.02 million. The shares have shown a negative weekly performance of -0.93% and its price on 07/22/20 gained nearly 1.41%. Currently, there are 342.00M common shares owned by the public and among those 340.27M shares have been available to trade.

    An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 20 analysts who have offered their price forecasts for K have a consensus price objective of $68.61. The analysts have set the share’s price value over the next 12 months at a high of $77.00 and a low of $55.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Kellogg Company stock is 2.70 for the next 12 months. The average price target is -0.69% below its last price level and a downside to the estimated low will see the stock lose -24.38% over that period. But an upside of 11.16% will see the stock hit the forecast high price target while mean target price for the stock is $69.00.

    Insiders at the company have transacted a total of 98 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 51 of these insider trades were purchases, accounting for 148,367 shares. Insider sales of the common stock occurred on 47 occasions, with total insider shares sold totaling 2,455,567 shares.

    The top 3 mutual fund holders in Kellogg Company are American Funds Income Fund of Ame, Vanguard Total Stock Market Index, and Vanguard 500 Index Fund. American Funds Income Fund of Ame owns 10.85 million shares of the company’s stock, all valued at over $716.75 million. The company bought an additional 0.45 million shares recently to bring their total holdings to about 3.17% of the shares outstanding. Vanguard Total Stock Market Index sold 40275.0 shares to see its total holdings shrink to 7.33 million shares valued at over $484.16 million and representing 2.14% of the shares outstanding. Vanguard 500 Index Fund bought 0.11 million shares to bring its total holdings to over 5.19 million shares at a value of $342.94 million. Vanguard 500 Index Fund now owns shares totaling to 1.52% of the shares outstanding.

    Shares of Kellogg Company (NYSE: K) opened at $67.66, up $0.2 from a prior closing price of $67.46. However, the script later closed the day at $68.41, up 1.41%. The company’s stock has a 5-day price change of -0.93% and 4.30% over the past three months. K shares are trading -2.46% year to date (YTD), with the 12-month market performance up to 15.89% higher. It has a 12-month low price of $52.66 and touched a high of $71.05 over the same period. Currently, 1.42 million shares have been traded, compared to an average intraday trading volume of 2.22 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 2.64%, 4.23%, and 5.28% respectively.

    Institutional ownership of Kellogg Company (NYSE: K) shares accounts for 87.10% of the company’s 342.00M shares outstanding. Mutual fund holders own 46.68%, while other institutional holders and individual stakeholders account for 47.80% and 38.87% respectively.

    It has a market capitalization of $22.98B and a beta (3y monthly) value of 0.58. The stock’s trailing 12-month PE ratio is 22.52, while the earnings-per-share (ttm) stands at $3.00. The company has a PEG of 12.27 and a Quick Ratio of 0.60 with the debt-to-equity ratio at 3.16. Price movements for the stock have been influenced by the stock’s volatility, which stands at 1.53% over the week and 1.97% over the month.

    Analysts forecast that Kellogg Company (K) will achieve an EPS of $0.93 for the current quarter, $0.94 for the next quarter and $3.88 for 2021. The lowest estimate earnings-per-share for the quarter is $0.9 while analysts give the company a high EPS estimate of $1. Comparatively, EPS for the current quarter was $0.99 a year ago. Earnings per share for the fiscal year are expected to decrease by -26.50%, and 2.29% over the next financial year. EPS should shrink at an annualized rate of 1.84% over the next five years, compared to 9.80% over the past 5-year period.

    If you are looking to buy this stock, then you may note that the average analyst recommendation by 20 brokerage firm advisors rate Kellogg Company (K) as a “Moderate Buy” at a consensus score of 2.70. Specifically, 8 Wall Street analysts polled rate the stock as a buy, while 8 of the 20 advise that investors “hold,” and 2 rated it as a “Sell.”

    Looking at the support for the K, a number of firms have released research notes about the stock. Consumer Edge Research stated their Equal Weight rating for the stock in a research note on May 01, 2020, with the firm’s price target at $65. Bernstein coverage for the Kellogg Company (K) stock in a research note released on March 18, 2020 offered a Mkt Perform rating with a price target of $66. Jefferies was of a view on January 23, 2020 that the stock is Hold, while Jefferies gave the stock Hold rating on January 22, 2020, issuing a price target of. BMO Capital Markets on their part issued Outperform rating on January 09, 2020.


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