Kellogg (K) Shares Down 8.9% After Earnings Miss

Kellogg (NYSE:K)’s share price was down 8.9% during trading on Wednesday following a weaker than expected earnings announcement. The company traded as low as $64.95 and last traded at $65.48. Approximately 7,929,724 shares changed hands during trading, an increase of 211% from the average daily volume of 2,551,829 shares. The stock had previously closed at $71.86.

The company reported $1.06 earnings per share for the quarter, missing the Zacks’ consensus estimate of $1.07 by ($0.01). Kellogg had a return on equity of 59.68% and a net margin of 13.33%. The business had revenue of $3.47 billion for the quarter, compared to the consensus estimate of $3.43 billion. During the same period in the previous year, the firm earned $1.03 earnings per share. The company’s revenue was up 6.9% compared to the same quarter last year.

The firm also recently announced a quarterly dividend, which will be paid on Monday, December 17th. Shareholders of record on Monday, December 3rd will be issued a dividend of $0.56 per share. This represents a $2.24 dividend on an annualized basis and a yield of 3.50%. The ex-dividend date is Friday, November 30th. Kellogg’s payout ratio is 55.45%.

A number of equities research analysts have weighed in on K shares. Zacks Investment Research lowered shares of Kellogg from a “hold” rating to a “sell” rating in a report on Tuesday, October 16th. Credit Suisse Group boosted their target price on shares of Kellogg from $71.00 to $75.00 and gave the stock a “hold” rating in a report on Thursday, August 9th. Wells Fargo & Co reissued a “hold” rating and set a $67.00 target price (up from $62.00) on shares of Kellogg in a report on Sunday, August 5th. Buckingham Research boosted their target price on shares of Kellogg from $76.00 to $79.00 and gave the stock a “buy” rating in a report on Friday, July 20th. Finally, Morgan Stanley started coverage on shares of Kellogg in a report on Monday, September 17th. They set an “equal weight” rating and a $75.00 target price on the stock. Two equities research analysts have rated the stock with a sell rating, nine have issued a hold rating and seven have given a buy rating to the company’s stock. The stock presently has an average rating of “Hold” and an average target price of $71.94.

In other news, major shareholder Kellogg W. K. Foundation Trust sold 215,000 shares of the company’s stock in a transaction on Thursday, September 13th. The shares were sold at an average price of $74.61, for a total value of $16,041,150.00. The transaction was disclosed in a document filed with the SEC, which is available through this link. Also, Vice Chairman Gary H. Pilnick sold 66,655 shares of the company’s stock in a transaction on Monday, August 6th. The shares were sold at an average price of $72.25, for a total transaction of $4,815,823.75. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 636,655 shares of company stock worth $45,829,574. Insiders own 1.40% of the company’s stock.

Several large investors have recently bought and sold shares of the company. Steward Partners Investment Advisory LLC boosted its stake in shares of Kellogg by 13.2% in the 3rd quarter. Steward Partners Investment Advisory LLC now owns 6,104 shares of the company’s stock valued at $427,000 after purchasing an additional 711 shares during the last quarter. Stonebridge Capital Management Inc. boosted its stake in Kellogg by 3.8% during the second quarter. Stonebridge Capital Management Inc. now owns 21,000 shares of the company’s stock worth $1,502,000 after acquiring an additional 775 shares in the last quarter. Kiley Juergens Wealth Management LLC boosted its stake in Kellogg by 57.7% during the third quarter. Kiley Juergens Wealth Management LLC now owns 2,127 shares of the company’s stock worth $148,000 after acquiring an additional 778 shares in the last quarter. First Midwest Bank Trust Division boosted its stake in Kellogg by 26.6% during the third quarter. First Midwest Bank Trust Division now owns 3,803 shares of the company’s stock worth $267,000 after acquiring an additional 800 shares in the last quarter. Finally, Van Hulzen Asset Management LLC boosted its stake in Kellogg by 1.1% during the second quarter. Van Hulzen Asset Management LLC now owns 76,058 shares of the company’s stock worth $5,314,000 after acquiring an additional 814 shares in the last quarter. 88.98% of the stock is currently owned by institutional investors.

The company has a market capitalization of $24.91 billion, a PE ratio of 15.84, a price-to-earnings-growth ratio of 2.11 and a beta of 0.49. The company has a current ratio of 0.82, a quick ratio of 0.50 and a debt-to-equity ratio of 2.57.

About Kellogg (NYSE:K)

Kellogg Company, together with its subsidiaries, manufactures and markets ready-to-eat cereal and convenience foods. The company operates through U.S. Morning Foods, U.S. Snacks, U.S. Specialty, North America Other, Europe, Latin America, and Asia Pacific segments. Its principal products include cookies, crackers, savory snacks, toaster pastries, cereal bars, granola bars and bites, fruit-flavored snacks, ready-to-eat cereals, frozen waffles, and veggie foods.

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