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In a recent transaction, the W.K. Kellogg Foundation Trust, a significant shareholder in Kellanova (NYSE:K), sold 114,583 shares of the company’s common stock. The shares were sold on May 28 at an average price of $82.3869 each, resulting in a total sale value of approximately $9.44 million. The transaction comes as Kellanova trades near its 52-week high of $83.22, with the stock showing remarkably low volatility with a beta of 0.31. InvestingPro analysis indicates the stock is currently trading above its Fair Value. Following this transaction, the Trust retains ownership of 46,472,450 shares. The sale was conducted under a trading plan established on May 7, 2024, in compliance with Rule 10b5-1(c) under the Securities and Exchange Act of 1934. Notably, Kellanova maintains a strong dividend track record, having paid dividends for 55 consecutive years, with a current yield of 2.76%. For deeper insights into Kellanova’s insider trading patterns and comprehensive financial analysis, investors can access the detailed Pro Research Report available on InvestingPro.
In other recent news, Kellanova reported first-quarter earnings and revenue that fell short of analyst expectations. The company posted adjusted earnings per share of $0.90, missing the consensus estimate of $1.01, while revenue reached $3.08 billion, below the projected $3.18 billion. Despite these results, Kellanova’s CEO, Steve Cahillane, expressed optimism, highlighting strong top-line growth driven by emerging markets and the snacks business. In another development, Kellanova announced a change in its executive team as Amit Banati, the Vice Chairman and Chief Financial Officer, resigned to pursue other opportunities, with John Renwick appointed as the acting CFO.
Analyst firms DA Davidson and Stifel maintained their ratings on Kellanova, with both setting a price target of $83.50. DA Davidson noted that the first-quarter earnings surpassed expectations due to reduced overhead costs following the announcement of Kellanova’s acquisition by Mars. Meanwhile, Stifel pointed out that Kellanova’s gross margin contracted due to higher costs and unfavorable divisional mix, despite a slight increase in organic revenue. The anticipated acquisition by Mars is expected to close in the first half of 2025, and Kellanova has not provided forward-looking financial guidance. These developments have led analysts to adopt a cautious stance, awaiting further clarity on the acquisition’s impact and industry trends.
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