Zacks Reiterates “Neutral” Rating for Kellogg Company (K)
Kellogg Company (NYSE:K)‘s stock had its “neutral” rating reaffirmed by Zacks in a report released on Friday, Stock Ratings Network reports. They currently have a $69.00 target price on the stock. Zacks‘s price target would suggest a potential upside of 5.55% from the company’s current price.
Zacks’ analyst wrote, “The first quarter of 2014 was another weak one for Kellogg as U.S. cereal sales remained soft and international results weakened from last quarter. Though first-quarter adjusted earnings of $1.01 per share beat the Zacks Consensus Estimate, it declined 1% year over year due to weak revenues and profits. Revenues declined 3.1% in the quarter once again due to choppy cereal sales. Despite the near term weakness, we have faith in Kellogg’s strong fundamentals. We are encouraged by Kellogg’s solid brand positioning, geographic diversity and significant investments in innovation, marketing and supply-chain initiatives. We are also encouraged by the growth potential, diversification and international presence that the Pringles deal provides. However, the strained cereal and snacks categories keep us on the sidelines. Though the new cost savings plan, Project K, will free up funds for brand building, innovation and overall growth, it would easily take a couple of years before it delivers substantial results.”
Shares of Kellogg Company (NYSE:K) traded up 0.35% on Friday, hitting $65.60. 3,003,189 shares of the company’s stock traded hands. Kellogg Company has a 52 week low of $55.69 and a 52 week high of $67.98. The stock’s 50-day moving average is $64.20 and its 200-day moving average is $61.75. The company has a market cap of $23.727 billion and a price-to-earnings ratio of 13.23.
Kellogg Company (NYSE:K) last announced its earnings results on Thursday, May 1st. The company reported $1.01 EPS for the quarter, beating the Thomson Reuters consensus estimate of $0.98 by $0.03. The company had revenue of $3.70 billion for the quarter, compared to the consensus estimate of $3.82 billion. During the same quarter in the prior year, the company posted $0.99 earnings per share. The company’s quarterly revenue was down 3.1% on a year-over-year basis. Analysts expect that Kellogg Company will post $3.99 EPS for the current fiscal year.
The company also recently declared a quarterly dividend, which is scheduled for Monday, June 16th. Stockholders of record on Monday, June 2nd will be given a dividend of $0.46 per share. This represents a $1.84 dividend on an annualized basis and a yield of 2.81%. The ex-dividend date of this dividend is Thursday, May 29th.
Other equities research analysts have also recently issued reports about the stock. Analysts at JPMorgan Chase & Co. raised their price target on shares of Kellogg Company from $57.00 to $62.00 in a research note on Monday. They now have a “neutral” rating on the stock. Separately, analysts at Deutsche Bank reiterated a “buy” rating on shares of Kellogg Company in a research note on Monday. They now have a $64.00 price target on the stock, up previously from $63.00. Finally, analysts at Nomura reiterated a “buy” rating on shares of Kellogg Company in a research note on Wednesday, April 9th. They now have a $70.00 price target on the stock. Three research analysts have rated the stock with a sell rating, six have given a hold rating and five have given a buy rating to the company. Kellogg Company presently has an average rating of “Hold” and a consensus target price of $62.37.
Kellogg Company (NYSE:K) is engaged in the manufacture and marketing of ready-to-eat cereal and convenience foods.
To view Zacks’ full report, visit Zacks’ official website.
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