WK Kellogg (NYSE:KLG) Shares Gap Up After Insider Buying Activity

WK Kellogg Co (NYSE:KLG)’s stock price gapped up before the market opened on Friday after an insider bought additional shares in the company. The stock had previously closed at $17.18, but opened at $17.72. WK Kellogg shares last traded at $17.23, with a volume of 206,579 shares trading hands.

Specifically, Director G Zachary Gund bought 65,000 shares of WK Kellogg stock in a transaction that occurred on Thursday, November 14th. The stock was bought at an average price of $17.76 per share, for a total transaction of $1,154,400.00. Following the purchase, the director now directly owns 195,000 shares of the company’s stock, valued at approximately $3,463,200. The trade was a 50.00 % increase in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, Director G Zachary Gund purchased 65,000 shares of WK Kellogg stock in a transaction on Tuesday, November 12th. The shares were acquired at an average cost of $17.94 per share, with a total value of $1,166,100.00. Following the completion of the transaction, the director now directly owns 65,000 shares in the company, valued at $1,166,100. The trade was a ∞ increase in their position. The disclosure for this purchase can be found here.

Analysts Set New Price Targets

Several analysts recently commented on KLG shares. Barclays raised their target price on WK Kellogg from $16.00 to $19.00 and gave the stock an “underweight” rating in a report on Monday, November 11th. Stifel Nicolaus decreased their target price on shares of WK Kellogg from $22.00 to $18.00 and set a “hold” rating for the company in a research note on Tuesday, July 23rd. Finally, JPMorgan Chase & Co. dropped their price target on shares of WK Kellogg from $22.00 to $17.00 and set a “neutral” rating on the stock in a research report on Wednesday, August 7th. Three research analysts have rated the stock with a sell rating and five have issued a hold rating to the company’s stock. According to MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus price target of $18.88.

WK Kellogg Stock Performance

The company has a debt-to-equity ratio of 1.49, a current ratio of 0.78 and a quick ratio of 0.34. The company has a market cap of $1.48 billion and a price-to-earnings ratio of 22.18. The firm has a 50 day simple moving average of $17.54 and a 200-day simple moving average of $18.01.

WK Kellogg (NYSE:KLG) last released its quarterly earnings results on Thursday, November 7th. The company reported $0.31 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.26 by $0.05. WK Kellogg had a net margin of 2.50% and a return on equity of 33.41%. The business had revenue of $689.00 million for the quarter, compared to the consensus estimate of $674.10 million. During the same period in the previous year, the firm earned $0.49 EPS. The business’s revenue was down .4% on a year-over-year basis. As a group, analysts predict that WK Kellogg Co will post 1.49 EPS for the current fiscal year.

WK Kellogg Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, December 13th. Investors of record on Friday, November 29th will be paid a dividend of $0.16 per share. This represents a $0.64 annualized dividend and a yield of 3.71%. The ex-dividend date of this dividend is Friday, November 29th. WK Kellogg’s payout ratio is currently 82.05%.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the stock. GAMMA Investing LLC raised its stake in WK Kellogg by 88.6% in the third quarter. GAMMA Investing LLC now owns 1,890 shares of the company’s stock valued at $32,000 after buying an additional 888 shares in the last quarter. EntryPoint Capital LLC acquired a new position in WK Kellogg in the first quarter valued at approximately $42,000. Rothschild Investment LLC acquired a new stake in WK Kellogg during the second quarter worth approximately $46,000. Abich Financial Wealth Management LLC boosted its holdings in shares of WK Kellogg by 3,575.4% in the 3rd quarter. Abich Financial Wealth Management LLC now owns 4,484 shares of the company’s stock valued at $77,000 after buying an additional 4,362 shares in the last quarter. Finally, International Assets Investment Management LLC raised its stake in WK Kellogg by 1,724.1% during the 3rd quarter. International Assets Investment Management LLC now owns 4,688 shares of the company’s stock worth $80,000 after acquiring an additional 4,431 shares in the last quarter. 95.74% of the stock is currently owned by hedge funds and other institutional investors.

About WK Kellogg

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.