WK Kellogg Co (KLG) Shares Plummet Below 1-Year High

WK Kellogg Co (NYSE: KLG)’s stock price has plunge by -4.60relation to previous closing price of 19.79. Seeking Alpha reported 2024-03-13 that WK Kellogg has been undervalued since its split from parent company Kellanova in September last year. Unlike some spinoffs, KLG carries a strong balance sheet and pays a respectable and well-covered dividend. KLG’s focus on modernizing its supply chain and introducing innovative products positions it for potential growth in 2024 and beyond.

Is It Worth Investing in WK Kellogg Co (NYSE: KLG) Right Now?

There are mixed opinions on the stock, with 0 analysts rating it as a “buy,” 0 rating it as “overweight,” 0 rating it as “hold,” and 0 rating it as “sell.”

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The public float for KLG is 64.84M and currently, short sellers hold a 10.11% ratio of that float. The average trading volume of KLG on April 03, 2024 was 1.15M shares.

KLG’s Market Performance

The stock of WK Kellogg Co (KLG) has seen a 0.00% decrease in the past week, with a 28.26% rise in the past month, and a 43.68% gain in the past quarter. The volatility ratio for the week is 3.71%, and the volatility levels for the past 30 days are at 3.52% for KLG. The simple moving average for the past 20 days is 12.59% for KLG’s stock, with a 45.29% simple moving average for the past 200 days.

Analysts’ Opinion of KLG

Many brokerage firms have already submitted their reports for KLG stocks, with Morgan Stanley repeating the rating for KLG by listing it as a “Equal-Weight.” The predicted price for KLG in the upcoming period, according to Morgan Stanley is $13 based on the research report published on December 14, 2023 of the previous year 2023.

Evercore ISI, on the other hand, stated in their research note that they expect to see KLG reach a price target of $13. The rating they have provided for KLG stocks is “In-line” according to the report published on November 13th, 2023.

Barclays gave a rating of “Underweight” to KLG, setting the target price at $11 in the report published on November 06th of the previous year.

KLG Trading at 26.35% from the 50-Day Moving Average

After a stumble in the market that brought KLG to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -10.10% of loss for the given period.

Volatility was left at 3.52%, however, over the last 30 days, the volatility rate increased by 3.71%, as shares surge +28.79% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +47.96% upper at present.

During the last 5 trading sessions, KLG remain unchanged, in comparison to the 20-day moving average, which settled at $16.98. In addition, WK Kellogg Co saw 43.68% in overturn over a single year, with a tendency to cut further gains.

Insider Trading

Reports are indicating that there were more than several insider trading activities at KLG starting from MURGUIA RAMON, who purchase 1,000 shares at the price of $14.64 back on Feb 28 ’24. After this action, MURGUIA RAMON now owns 10,860 shares of WK Kellogg Co, valued at $14,640 using the latest closing price.

Brice Sherry, the Chief Supply Chain Officer of WK Kellogg Co, purchase 3,150 shares at $11.75 during a trade that took place back on Nov 22 ’23, which means that Brice Sherry is holding 9,335 shares at $37,019 based on the most recent closing price.

Stock Fundamentals for KLG

Current profitability levels for the company are sitting at:

  • 0.04 for the present operating margin
  • 0.28 for the gross margin

The net margin for WK Kellogg Co stands at 0.04. The total capital return value is set at 0.11.

Based on WK Kellogg Co (KLG), the company’s capital structure generated 0.62 points at debt to capital in total, while cash flow to debt ratio is standing at 0.85. The debt to equity ratio resting at 1.66. The interest coverage ratio of the stock is 3.96.

Currently, EBITDA for the company is 249.0 million with net debt to EBITDA at 2.34. When we switch over and look at the enterprise to sales, we see a ratio of 0.74. The receivables turnover for the company is 11.25for trailing twelve months and the total asset turnover is 1.45. The liquidity ratio also appears to be rather interesting for investors as it stands at 0.84.

Conclusion

In conclusion, WK Kellogg Co (KLG) has seen better performance in recent times. Analysts have a mixed opinion on the stock, with some rating it as a “buy” and others rating it as a “hold”. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.

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