Kellogg Company (K) shares are trading at lower $63.67 and the avg recommendation for the stock is Moderate Buy, while the current analyst price target stands at $70.68.
To add more color to this target, the company’s high over the last year is $72.88 and the low is $52.66. Over the last 52 weeks, K is down -1.30% while the S&P 500 is up 14.95%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, K reported a profit of $1.2 billion. Kellogg Company also saw revenues increase to $3.43 billion. In addition, K has free cash flow of $1.27 billion as of 09-2020. The company’s EBITDA came in at $532.0 million which compares well with its peers.
K booked profit margins of 8.80%, its Return on Equity (ROE) is 42.00%, and its Return on Assets is 6.50%. All told, it is clear that, K needs to be on your watchlist.
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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. K has a short ratio of 6.11 and outstanding shares of 343.00M.
K has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 1.36 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at 3.55. Kellogg Company K also noted assets of $18.92 billion at the end of the last quarter. Investors should also keep an eye on sector updates as K has historically followed its peers on positive news.
All told, Kellogg Company K has strung together solid data and demonstrated underlying fundamentals. At its current valuation, K represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.
Kellogg Company K is now commanding a market cap of 21.95B and a float of 341.27M. K is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of K stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in K, either long or short, and we have not been compensated for this article.