On September 28, 2023, KELLOGG W K FOUNDATION TRUST (Trades, Portfolio), a prominent investment firm, reduced its stake in Kellogg Co (K, Financial). This article will delve into the details of the transaction, provide an overview of the guru and the traded company, and analyze the stock's performance and valuation. We will also compare the investment with those of other gurus and discuss its potential implications for value investors.
Details of the Transaction
The firm sold 77,800 shares of Kellogg Co at a price of $58.91 per share. This transaction reduced the firm's total holdings in the company to 54,020,638 shares, representing 86.38% of its portfolio and 15.78% of Kellogg Co's outstanding shares. Despite the reduction, Kellogg Co remains the firm's top holding, underscoring its significance in the firm's investment strategy.
Profile of KELLOGG W K FOUNDATION TRUST (Trades, Portfolio)
KELLOGG W K FOUNDATION TRUST (Trades, Portfolio) 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 in 1930 by Will Keith Kellogg. 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. It invests mainly in the Kellogg Company, its original parent company, and allocates its remaining assets in the iShares S&P 100 Index Fund. The firm's equity stands at $3.69 billion.
About Kellogg Co
Kellogg Co, founded in 1906, is a leading global manufacturer and marketer of cereal, cookies, crackers, and other packaged foods. Its products are manufactured in 21 countries and marketed in more than 180 countries. The company intends to split its global snacking arm from its North American cereal segment by the end of calendar 2023. As of September 29, 2023, the company's market capitalization stands at $20.27 billion.
Stock Performance and Valuation
Kellogg Co's stock has a PE percentage of 23.68, indicating that the company is profitable. According to GuruFocus's GF-Score, the stock is modestly undervalued with a GF Value of $73.15 and a price to GF Value ratio of 0.81. Since its IPO in 1959, the stock has gained 3670.7%. However, the stock's year-to-date performance is negative, with a decline of 16.94%.
Stock Rankings and Scores
Kellogg Co's stock has a GF-Score of 69/100, indicating poor future performance potential. The company's financial strength is ranked 5/10, and its profitability rank is 7/10. The company's growth rank is 5/10, and its GF Value Rank is 7/10. The stock's momentum rank is 1/10, indicating weak momentum. The company's Piotroski F-Score is 5, and its Altman Z score is 2.59, suggesting financial stability.
Other Gurus' Investments
Other gurus who hold Kellogg Co stock include Mario Gabelli (Trades, Portfolio), Ken Fisher (Trades, Portfolio), and Joel Greenblatt (Trades, Portfolio). Their investments in Kellogg Co provide a useful comparison to KELLOGG W K FOUNDATION TRUST (Trades, Portfolio)'s investment.
Conclusion
In conclusion, KELLOGG W K FOUNDATION TRUST (Trades, Portfolio)'s recent reduction in its stake in Kellogg Co is a significant move that aligns with its investment strategy. Despite the reduction, Kellogg Co remains the firm's top holding, highlighting its importance in the firm's portfolio. The stock's performance and valuation, as well as its rankings and scores, provide valuable insights for value investors. The investments of other gurus in Kellogg Co also offer useful comparisons. As always, investors are advised to conduct their own comprehensive research before making investment decisions.
