Kellogg (NYSE:K) Sets New 52-Week High on Better-Than-Expected Earnings

Kellogg (NYSE:K – Get Rating) shares reached a new 52-week high on Thursday following a stronger than expected earnings report. The company traded as high as $76.44 and last traded at $75.95, with a volume of 36753 shares traded. The stock had previously closed at $73.96.

The company reported $1.18 earnings per share for the quarter, topping analysts’ consensus estimates of $1.05 by $0.13. Kellogg had a return on equity of 34.82% and a net margin of 10.81%. The company had revenue of $3.86 billion for the quarter, compared to analyst estimates of $3.64 billion. During the same quarter in the previous year, the company posted $1.14 earnings per share. The firm’s revenue for the quarter was up 8.7% compared to the same quarter last year.

Kellogg Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, September 15th. Shareholders of record on Thursday, September 1st will be given a $0.59 dividend. The ex-dividend date is Wednesday, August 31st. This represents a $2.36 dividend on an annualized basis and a yield of 3.14%. This is an increase from Kellogg’s previous quarterly dividend of $0.58. Kellogg’s payout ratio is currently 51.67%.

Wall Street Analyst Weigh In

A number of equities research analysts have commented on K shares. Deutsche Bank Aktiengesellschaft reduced their target price on Kellogg from $74.00 to $72.00 and set a “hold” rating on the stock in a research report on Wednesday, June 22nd. JPMorgan Chase & Co. reiterated an “underweight” rating and issued a $67.00 price objective (up previously from $64.00) on shares of Kellogg in a report on Wednesday, June 22nd. Citigroup boosted their price objective on Kellogg from $83.00 to $87.00 and gave the company a “buy” rating in a report on Wednesday, June 22nd. StockNews.com upgraded Kellogg from a “hold” rating to a “buy” rating in a report on Monday, May 9th. Finally, UBS Group downgraded Kellogg from a “buy” rating to a “neutral” rating and cut their price objective for the company from $81.00 to $74.00 in a report on Thursday, July 7th. Two analysts have rated the stock with a sell rating, seven have issued a hold rating and two have assigned a buy rating to the company’s stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus target price of $70.90.

Insiders Place Their Bets

In other news, major shareholder Kellogg W. K. Foundation Trust sold 146,153 shares of the company’s stock in a transaction dated Friday, May 20th. The stock was sold at an average price of $66.92, for a total transaction of $9,780,558.76. Following the completion of the transaction, the insider now directly owns 57,608,756 shares of the company’s stock, valued at approximately $3,855,177,951.52. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Insiders have sold a total of 876,918 shares of company stock worth $62,011,256 in the last quarter. 1.40% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in K. Allworth Financial LP boosted its position in shares of Kellogg by 108.9% during the 1st quarter. Allworth Financial LP now owns 397 shares of the company’s stock worth $26,000 after acquiring an additional 207 shares in the last quarter. Investment Research & Advisory Group Inc. acquired a new stake in shares of Kellogg in the 2nd quarter valued at about $26,000. First Horizon Advisors Inc. boosted its position in shares of Kellogg by 115.5% in the 2nd quarter. First Horizon Advisors Inc. now owns 416 shares of the company’s stock valued at $28,000 after purchasing an additional 223 shares during the period. Glassman Wealth Services boosted its position in shares of Kellogg by 137.3% in the 2nd quarter. Glassman Wealth Services now owns 394 shares of the company’s stock valued at $28,000 after purchasing an additional 228 shares during the period. Finally, AHL Investment Management Inc. acquired a new stake in shares of Kellogg in the 4th quarter valued at about $29,000. 84.34% of the stock is owned by institutional investors and hedge funds.

Kellogg Trading Up 1.7 %

The stock has a market capitalization of $25.35 billion, a price-to-earnings ratio of 16.71, a PEG ratio of 4.77 and a beta of 0.43. The company has a debt-to-equity ratio of 1.39, a quick ratio of 0.39 and a current ratio of 0.65. The business has a 50-day moving average of $70.98 and a 200-day moving average of $67.74.

About Kellogg

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Kellogg Company, together with its subsidiaries, manufactures and markets snacks and convenience foods. The company operates through four segments: North America, Europe, Latin America, and Asia Middle East Africa. Its principal products include crackers, crisps, savory snacks, toaster pastries, cereal bars, granola bars and bites, ready-to-eat cereals, frozen waffles, veggie foods, and noodles.