Kellogg (NYSE:K) Receives a Higher Rating From Morgan Stanley. What’s The Reasoning Behind This Move?

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Kellogg (NYSE:K) Stock Upgrade

Kellogg (NYSE:K) was upgraded by Morgan Stanley from a Underweight rating to a solid Equal-Weight rating in a recent report shared with investors and clients on Tuesday morning.

From a total of 16 analysts covering Kellogg Company (NYSE:K) stock, 3 rate it a ”Buy”, 5 a “Sell”, and 12 a ”Hold”. This means that 15% of the ratings are positive. The highest target price is $80 while the lowest target price is $62. The mean of all analyst targets is $70.25 with a 2.91% above today’s ($70.82) stock price. Kellogg Company was the topic of 14 analyst reports since August 5, 2015 according to the firm StockzIntelligence Inc. Morgan Stanley upgraded shares on December 8 to “Equal-Weight” rating. S&P Research maintained shares with “Hold” rating and $69 target share price in a report from an August 5. Susquehanna initiated K stock in a recent report from October 26 with “Neutral” rating. RBC Capital Markets maintained the rating on August 5. RBC Capital Markets has a “Sector Perform” rating and a $72 price target on shares. Finally, Zacks downgraded the stock to “Hold” rating in a report issued on an August 5.

The stock increased 0.43% or $0.3 during the last trading session, striking $70.82. Approximately shares of stock traded hands. Kellogg Company (NYSE:K) has risen 12.39% since May 6, 2015 and is uptrending. It has outperformed by 13.19% the S&P500.

The overall sentiment of institutions has increased to 0.97 in Q2 2015. Its up 0.13, from 0.84 in 2015Q2. The ratio improved, as 47 institutions have sold all the shares of Kellogg Company that they owned while 221 funds have taken shares off the table. 56 funds have purchased shares for the first time while 205 added to their positions. These institutions now hold 283.63 million shares or 0.88% more than the 281.16 million shares they owned in 2015Q2.

The Fund Kellogg W K Foundation Trust currently is holding shares equating to 96.42% of its total portfolio in Kellogg Company representing a total of 70.37 million shares. Another fund,Keybank National Association Oh, is holding a total of 27.33 million shares equating to 12.86% of their holdings. Additionally, Private Trust Co Na has a 203,528 share stake in Kellogg Company which represents 4.06% of their total portfolio. The Fund, Corda Investment Management Llc., based out of Texas, has also built up a stake in the stock, which represents a total of 2.91% of their total portfolio. Finally Richard C. Young & Co. Ltd., a fund which is based in the state of Rhode Island reported a total holdings of 135,687 shares.

Insider activity is a very important aspect to track on any stock. Going back to August 7, 2015, shareholders of Kellogg Company have witnessed 0 insider purchases, and a total of 10 selling transactions equating to a net activity of approximately $45.41 million . Kellogg W K Foundation Trust sold 184,424 shares worth approximately $13.13 million. Korologos Ann Mclaughlin sold 4,895 shares worth approximately $324,033. Dillon John T sold 3,165 shares worth approximately $217,025. Pilnick Gary H sold 92,285 shares worth approximately $6.35M.

Kellogg Company is a manufacturer and marketer of ready-to-eat cereal and convenience foods. The company has a market cap of $24.99 billion. The Company’s principal products are ready-to-eat cereals and convenience foods, such as cookies, crackers, savory snacks, toaster pastries, cereal bars, fruit-flavored snacks, frozen waffles and veggie foods. It has 69.81 P/E ratio. The Company’s cereal products are generally marketed under the Kellogg’s name and are sold to the grocery trade through direct sales forces for resale to consumers.

According to Zacks Investment Research, “Kellogg Company is the world’s leading producer of cereal and a leading producer of convenience foods, including cookies, crackers, toaster pastries, cereal bars, frozen waffles, meat alternatives, pie crusts, and ice cream cones. The company’s brands include Kellogg’s, Keebler, Pop-Tarts, Eggo, Cheez-It, Nutri-Grain, Rice Krispies, Murray, Austin, Morningstar Farms, Famous Amos, Carr’s, Plantation, Ready Crust, and Kashi. Kellogg products are manufactured in 19 countries and marketed in more than 160 countries around the world.” Get a free copy of the Zacks research report on Kellogg Company (K).

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