Home Sectors Consumer Defensive Present Technicals: Kellogg Company (NYSE: K)

Present Technicals: Kellogg Company (NYSE: K)


Kellogg Company is in the consumer defensive sector and is part of the consumer packaged goods industry. The company CEO is Steven A. Cahillane. Kellogg Co is engaged in the manufacturing and marketing of ready-to-eat cereal and convenience foods. Its products include cereal, cookies, crackers, and other packaged foods.

Previous Intraday Trading Performance:

The K stock showed a previous change of -0.86% with an open at 55.42 and a close of 55.36. It reached an intraday high of 55.90 and a low of 54.82.

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The stock has a market cap of $19.0b with 344.0m shares outstanding, of which the float is 342.3m shares. Trading volume reached 5,316,809 shares compared to its average volume of 2,516,874 shares. Based on the current average volume and close price, the trading liquidity is good.

Historical Trading Performance:

Over the last five trading days, Kellogg Company shares returned -6.04% and in the past 30 trading days it returned -3.12%. Over three months, it changed -20.54%. In one year it has changed -15.55% and within that year its 52-week high was 74.98 and its 52-week low was 54.82. K stock is 0.99% above its 52 Week Low.

Our calculations show a 200 day moving average of 64.82 and a 50 day moving average of 59.04. Currently K stock is trading -14.59% below its 200 day moving average and may not be a good opportunity to buy as it may continue to trend down.

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The last annual fiscal EPS for the company was reported at 4.3 that ended on 31st of December 2018, which according to the previous close, that is a PE of 15.29. Based on 7 analyst estimates, the consensus EPS for the next quarter is 0.88. The TTM EPS is 4.30, which comes to a TTM PE of 12.87. Historically, the PE high was 50.40 and the PE low was 11.30. If the stock reached its PE low, that would represent a price of 48.61, which is a decrease of -12.20%.

The following are the last four quarter reported earnings per share:
12-31-2018:  0.91
09-30-2018:  1.06
06-30-2018:  1.14
03-31-2018:  1.19

The dividend per share is currently 2.24, which is a dividend yield of 4.05%. Also, the payout ratio is 52.09%, therefore the dividend is safe according to our calculations. K stock has a high dividend yield, but because the company has sufficient earnings to cover future dividends, it may be a good investment opportunity for an income portfolio.

Base on our calculations, the intrinsic value per share is 59.21, which means it is possibly undervalued and has a margin of safety of 6.51%

Indicators to Watch:

Based on the latest filings, there is 128.20% of institutional ownership. Short-interest is 12,650,953, which is 3.68% of shares outstanding. The short-interest ratio or days-to-cover ratio is 5.45. This stock has some short interest, but it may be normal and no cause for concern if long the position.

The current calculated beta is 0.57

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Fundamental Indicators:

Based on last reported financials, the company’s return on equity is 56.63%, return on assets is 7.99%, profit margin is 9.83%, price-to-sales is 1.42 and price-to-book is 7.32.

Company Scores:

All scores are out of six:
 2  :Valuation Score
 3  :Past Performance Score
 1  :Financial Strength Score
 2  :Future Growth Score
 6  :Dividend Score
 2  :Overall Score

John Jones
Worked for several Wall Street firms: Salomon Smith Barney, UBS, and Charles Schwab. Has developed skills and gained extensive experience over the years that is used today to uncover winning penny stocks.Also was an attorney for small businesses in Scottsdale, Arizona. That experience and understanding of law provides a unique perspective and edge in discovering quality companies in various industries.