On September 7, 2023, KELLOGG W K FOUNDATION TRUST, a prominent investment firm, reduced its holdings in Kellogg Co (K, Financial), a leading global manufacturer and marketer of cereal and other packaged foods. This article provides an in-depth analysis of the transaction, the guru's profile, and the traded stock's performance and financials.
Details of the Transaction
The firm sold 77,800 shares of Kellogg Co at a price of $59.42 per share. This transaction reduced the firm's total holdings in the company to 54,254,038 shares, representing 87.5% of its portfolio and 15.85% of Kellogg Co's total shares. The transaction had a -0.13% impact on the firm's portfolio.
Profile of KELLOGG W K FOUNDATION TRUST
KELLOGG W K FOUNDATION TRUST is a nonprofit charity organization based in Battle Creek. The foundation provides the majority of funding to the W. K. Kellogg Foundation, which was founded by Will Keith Kellogg in 1930. The foundation's mission is to support children, families, and communities to create conditions that propel vulnerable children to achieve success. The trust invests almost exclusively in the consumer staples sector, with over 90% of its total asset allocations in this sector. Its primary investment is in the Kellogg Company, its original parent company. The trust also allocates a small portion of its held assets in the iShares S&P 100 Index Fund. The firm's total equity is $3.69 billion, and its top holding is Kellogg Co(K, Financial).
Overview of Kellogg Co
Kellogg Co, symbol K, is a USA-based company that was founded in 1906 and went public on May 12, 1959. The company manufactures and markets cereal, cookies, crackers, and other packaged foods. Its product mix includes well-known brands such as Special K, Frosted Flakes, Froot Loops, Rice Krispies, Pop-Tarts, Eggo, Kashi, and Morningstar Farms. The firm added the Pringles brand to its mix in 2012. Sales outside the US account for just north of 40% of Kellogg's consolidated sales base. The firm intends to split its global snacking arm from its North American cereal segment by the end of calendar 2023. The company's market capitalization is $20.21 billion, and its current price is $59.03.
Stock Performance and Rankings
Kellogg Co's stock has gained 3659.87% since its IPO. However, the stock has declined by 17.17% year-to-date and 0.66% since the transaction. The company's GF Score is 73/100, indicating a likely average performance. The company's Financial Strength is ranked 5/10, its Profitability Rank is 7/10, its Growth Rank is 5/10, its GF Value Rank is 7/10, and its Momentum Rank is 2/10.
Stock Financials and Industry
Kellogg Co's Piotroski F-Score is 5, and its Altman Z score is 2.59. The company's cash to debt ratio is 0.04, and its interest coverage is 6.12. The company operates in the Consumer Packaged Goods industry.
Transaction Analysis
The reduction of KELLOGG W K FOUNDATION TRUST's stake in Kellogg Co is significant given the firm's substantial holdings in the company. This transaction may reflect the firm's strategic portfolio adjustments. However, it's worth noting that other gurus, including Mario Gabelli (Trades, Portfolio), Ken Fisher (Trades, Portfolio), and Joel Greenblatt (Trades, Portfolio), also hold the traded stock, indicating its potential value.
All data and rankings are accurate as of September 8, 2023.
