BofA Securities has recently reduced WK Kellogg Co (KLG) stock to Underperform rating, as announced on July 10, 2024, according to Finviz. Earlier, on May 8, 2024, Exane BNP Paribas had reduced the stock from a Neutral to Underperform, setting a price target of $20. Morgan Stanley also initiated their research coverage with a price target of $13. Additionally, Evercore ISI initiated their research coverage on November 13, 2023, with a target price of $13. Barclays analysts, in their report published on November 6, 2023, also initiated Underweight rating and set a price target of $11 for WK Kellogg Co’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.
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WK Kellogg Co (KLG) Stock Trading Recap
On Monday, WK Kellogg Co (KLG) stock saw a decline, ending the day at $17.11 which represents a decrease of $-0.45 or -2.56% from the prior close of $17.56. The stock opened at $17.59 and touched a low of $17.05 during the day, reaching a high of $17.59. The volume of shares traded was 1.15 million exceeding the average volume of 1.10 million.
KLG Stock Performance and Moving Averages
In recent trading, WK Kellogg Co (KLG) stock price has shown some volatility, fluctuating -2.51% over the last five trades and 1.30% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by -13.54%, and it has gained 4.71% in the previous three months. Currently, KLG is trading at -4.24%, -1.59%, and 0.27% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.
As of the latest trading close, KLG, a Consumer Defensive sector stock, is trading -30.53% below its 52-week high but remains 77.21% above its 52-week low. The Average True Range (ATR) (14 days) of 0.62 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.
WK Kellogg Co’s Profitability and Valuation Ratios
WK Kellogg Co’s profitability metrics reveal strong financial health. The company currently boasts an operating margin of 6.06% and a profit margin of 4.45%, with a gross margin of -13.54%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.
In terms of valuation, WK Kellogg Co’s market capitalization stands at $1.47 billion. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. The stock’s price-to-earnings (P/E) ratio is 12.25, assessing the company’s valuation relative to its earnings. The forward P/E ratio, which uses projected earnings for the next financial year, is 11.33. Additionally, the Price-to-Sales Ratio is 0.54, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 4.37, comparing the market value to the company’s book value.
Understanding Insider Trading
Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 24.20% of WK Kellogg Co (KLG)’s shares, while financial institutions hold 69.59%.
