Kellanova (NYSE:K) has received an average recommendation of “Hold” from the fourteen analysts monitoring the stock, according to MarketBeat.com. Of these analysts, thirteen have assigned a hold rating, while one has opted for a buy rating. The consensus 12-month target price is set at $79.75, reflecting cautious optimism amid recent performance challenges.
In the latest reports, Citigroup upgraded Kellanova’s rating to “neutral” with a target price of $83.50. This announcement was made on May 29, 2024. Conversely, Wall Street Zen downgraded the stock from “buy” to “hold” in a report issued on May 2, 2024. These mixed evaluations highlight analysts’ varying perspectives on the company’s future prospects.
Quarterly Earnings Reveal Challenges
Kellanova reported its quarterly earnings on May 1, 2024, revealing earnings per share (EPS) of $0.90. This figure fell short of analysts’ expectations, which had anticipated an EPS of $1.01. The company’s revenue for this quarter was $3.08 billion, compared to a consensus estimate of $3.16 billion. This marks a 3.7% decline in revenue year-over-year, with the previous year’s quarterly earnings at $1.01 per share.
Despite these setbacks, Kellanova achieved a return on equity of 34.80% and a net margin of 10.93%. Analysts forecast that Kellanova will achieve an EPS of $3.93 for the current year, suggesting some optimism for recovery.
Dividend and Insider Activity
In addition to its earnings report, Kellanova announced a quarterly dividend of $0.57 per share, paid on June 13, 2024. Shareholders on record as of June 2, 2024, received this dividend, which translates to an annualized total of $2.28 and a yield of 2.86%. The company’s payout ratio stands at 57.58%, indicating a balanced approach to shareholder returns.
In a related development, the Kellogg W. K. Foundation Trust, a major shareholder, sold 114,583 shares on July 21, 2024, at an average price of $79.92. This transaction totaled approximately $9.16 million. Post-sale, the foundation retains 45,670,369 shares, valued at nearly $3.65 billion, a decrease of 0.25% in their ownership stake. Over the last ninety days, insiders have sold a total of 1,374,996 shares, amounting to approximately $111.20 million.
Institutional Investor Movements
Recent changes among institutional investors also reflect shifting sentiments regarding Kellanova. HighTower Advisors LLC increased its stake by 112.9% in the fourth quarter, now owning 33,946 shares valued at $2.75 million after acquiring an additional 18,001 shares. Similarly, Connor Clark & Lunn Investment Management Ltd. raised its holdings by 5.1%, while Natixis Advisors LLC added 13.4% to its position.
Currently, institutional investors and hedge funds hold 83.87% of Kellanova’s stock, indicating significant institutional confidence in the firm despite recent performance challenges.
Kellanova operates as a major player in the snack and convenience food industry, with a diverse portfolio that includes products such as crackers, cereals, and savory snacks. The company’s global reach extends across North America, Europe, and various other regions, positioning it as a significant entity within the market.
