Piper Jaffray Companies downgraded shares of Kellogg Company (NYSE:K) from an overweight rating to a neutral rating in a research report report published on Tuesday morning, MarketBeat reports. They currently have $78.00 target price on the stock.
“real threat” to food companies. The firm’s Michael Lavery downgraded Kellogg’s stock rating from Overweight to Neutral with a price target slashed from $78 to $72.Grocery giant Kroger Co (NYSE: KR) made public during its recent earnings conference call that a space optimization program is being planned, Lavery commented in his downgrade note. This will naturally result in a shrinking center store space (i.e, the “middle aisles”) to make room for fresh and other perimeter store type items (deli, cheese, etc). Also, the grocery chain is looking to add more private label items — all of which poses a risk to Kellogg’s cereal category. In fact, Kroger alone accounts for around 8 percent of Kellogg’s total sales, the analyst added.Meanwhile, Kellogg’s third-quarter-to-date sales momentum is showing some troubling signs, the analyst continued. Specifically, data points the analyst compiled found that its sales is roughly 1 percentage point worse than it was versus comparable second quarter data. As a whole, total U.S. measured retail sales of around 5.5 percent could imply a 7-percent decline in sales for Kellogg’s, which makes the company’s margin targets “even more difficult to achieve.,” the firm’s analyst wrote.
Several other research firms have also commented on K. Susquehanna Bancshares Inc set a $78.00 target price on shares of Kellogg and gave the company a hold rating in a report on Wednesday, June 14th. Zacks Investment Research raised shares of Kellogg from a sell rating to a hold rating in a report on Monday, June 12th. Sanford C. Bernstein set a $62.00 target price on shares of Kellogg and gave the company a sell rating in a report on Tuesday, June 27th. BidaskClub lowered shares of Kellogg from a sell rating to a strong sell rating in a report on Friday, June 23rd. Finally, BMO Capital Markets reduced their target price on shares of Kellogg from $85.00 to $78.00 and set a market perform rating on the stock in a report on Friday, August 4th. Two investment analysts have rated the stock with a sell rating, nine have assigned a hold rating and one has given a buy rating to the company’s stock. The company currently has a consensus rating of Hold and a consensus price target of $74.50.
Shares of Kellogg (NYSE K) opened at 63.36 on Tuesday. The firm’s 50 day moving average is $68.36 and its 200-day moving average is $70.41. The company has a market cap of $21.87 billion, a PE ratio of 28.68 and a beta of 0.49. Kellogg has a 1-year low of $63.11 and a 1-year high of $78.40.
Kellogg (NYSE:K) last posted its quarterly earnings data on Thursday, August 3rd. The company reported $0.97 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $0.92 by $0.05. The firm had revenue of $3.19 billion for the quarter, compared to analysts’ expectations of $3.16 billion. Kellogg had a net margin of 6.12% and a return on equity of 70.22%. The business’s quarterly revenue was down 2.5% on a year-over-year basis. During the same quarter last year, the company posted $0.91 EPS. Equities analysts expect that Kellogg will post $3.97 earnings per share for the current year.
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The company also recently declared a quarterly dividend, which was paid on Friday, September 15th. Shareholders of record on Friday, September 1st were issued a $0.54 dividend. This represents a $2.16 dividend on an annualized basis and a yield of 3.41%. The ex-dividend date of this dividend was Wednesday, August 30th. This is a positive change from Kellogg’s previous quarterly dividend of $0.52. Kellogg’s dividend payout ratio (DPR) is 97.74%.
Institutional investors have recently made changes to their positions in the business. Washington Trust Bank grew its holdings in Kellogg by 0.8% in the 2nd quarter. Washington Trust Bank now owns 1,780 shares of the company’s stock worth $124,000 after acquiring an additional 15 shares during the last quarter. Pathstone Family Office LLC bought a new stake in Kellogg in the 1st quarter worth $143,000. Bronfman E.L. Rothschild L.P. grew its holdings in Kellogg by 1.4% in the 1st quarter. Bronfman E.L. Rothschild L.P. now owns 2,218 shares of the company’s stock worth $161,000 after acquiring an additional 31 shares during the last quarter. Exane Derivatives grew its holdings in Kellogg by 24.2% in the 2nd quarter. Exane Derivatives now owns 2,300 shares of the company’s stock worth $160,000 after acquiring an additional 448 shares during the last quarter. Finally, CWM LLC grew its holdings in Kellogg by 5.3% in the 2nd quarter. CWM LLC now owns 2,343 shares of the company’s stock worth $163,000 after acquiring an additional 117 shares during the last quarter. 85.40% of the stock is currently owned by institutional investors and hedge funds.
Kellogg Company Profile
Kellogg Company is a manufacturer and marketer of ready-to-eat cereal and convenience foods. The Company’s principal products are ready-to-eat cereals and convenience foods, such as cookies, crackers, savory snacks, toaster pastries, cereal bars, fruit-flavored snacks, frozen waffles and veggie foods.
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