WK Kellogg (NYSE:KLG) Shares Gap Up After Better-Than-Expected Earnings

WK Kellogg Co (NYSE:KLG) gapped up before the market opened on Tuesday following a stronger than expected earnings report. The stock had previously closed at $16.31, but opened at $17.25. WK Kellogg shares last traded at $17.09, with a volume of 168,453 shares traded.

The company reported $0.42 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.28 by $0.14. WK Kellogg had a return on equity of 33.41% and a net margin of 2.50%.

WK Kellogg Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, March 14th. Shareholders of record on Friday, February 28th will be given a dividend of $0.165 per share. The ex-dividend date is Friday, February 28th. This is an increase from WK Kellogg’s previous quarterly dividend of $0.16. This represents a $0.66 dividend on an annualized basis and a yield of 3.69%. WK Kellogg’s dividend payout ratio is 82.05%.

Analysts Set New Price Targets

KLG has been the topic of several recent analyst reports. TD Cowen downgraded WK Kellogg from a “hold” rating to a “sell” rating and reduced their price target for the stock from $18.00 to $16.00 in a report on Wednesday, January 8th. Barclays reduced their price target on 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 price target on WK Kellogg from $19.00 to $18.00 and set a “hold” rating on the stock in a report on Friday, January 24th. Finally, Jefferies Financial Group reduced 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 four have issued a hold rating to the company. According to MarketBeat.com, WK Kellogg has a consensus rating of “Hold” and a consensus price target of $17.88.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of KLG. Halbert Hargrove Global Advisors LLC purchased a new position in WK Kellogg during the 4th quarter worth $25,000. GAMMA Investing LLC boosted its position in WK Kellogg by 88.6% during the 3rd quarter. GAMMA Investing LLC now owns 1,890 shares of the company’s stock valued at $32,000 after acquiring an additional 888 shares in the last quarter. SBI Securities Co. Ltd. bought a new stake in WK Kellogg during the 4th quarter valued at $36,000. Wealthfront Advisers LLC bought a new stake in WK Kellogg during the 4th quarter valued at $44,000. Finally, Spire Wealth Management bought a new stake in WK Kellogg during the 4th quarter valued at $56,000. 95.74% of the stock is currently owned by hedge funds and other institutional investors.

WK Kellogg Price Performance

The company has a current ratio of 0.78, a quick ratio of 0.34 and a debt-to-equity ratio of 1.49. The firm has a market cap of $1.54 billion, a P/E ratio of 22.95 and a beta of 0.70. The firm has a 50-day simple moving average of $17.70 and a 200-day simple moving average of $17.70.

WK Kellogg Company Profile

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.