Finance

Are Kellogg Company (K)’s Recent Ownership and Insider Trends a Sign of Things to Come?

Recent insider trends for Kellogg Company (NYSE:K) have caught the attention of investors. Insider activity is often a strong indicator of future performance in a stock, and if the data on K is anything to go by, investors should pay attention.

Institutions own 90.78% of Kellogg Company (K)’s shares. The total value of these holdings, in millions, is $20,181. Among active positions in the latest quarter, 267 holders increased their positions by a total of 24.94 million shares, 324 holders decreased the positions by a total of 14.71 million shares, and 135 holders held their positions. This works out to a net increase in ownership of 10.23 million shares, and suggests that institutions are feeling bullish about the stock.

Among new and sold out positions, 49 holders initiated new positions by a total of 4.19 million shares and 69 holders exited their positions by a total of 1.05 million shares. This nets out to an increase of 3.14 million shares and is a bullish sign for K.

In the last three months, insiders executed a total of 5 trades. 1 of these were buys and 4 were sells. Insider ownership decreased by a total of 252023 shares, which suggests that K’s key executives are feeling less optimistic about the outlook for the stock. The data from the past twelve months tells a similar story: insiders executed 20 buys and 17 sells, and ownership decreased by a net of 732167 shares.



Analysts often look at short interest, or the number of shares currently being shorted by investors, to aid in their outlook for a particular stock. Kellogg Company (NYSE:K)’s short interest is 28.07 million shares, or 10.07% of the float. This represents an increase of 13% in the number of shares being shorted compared to the previous reading, and implies that investors felt more pessimistic about the stock during the past two weeks.

Supplementing insider data with technical indicators can help an investor form a more complete view on the outlook for a stock. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that K is a Weak buy, which implies that K is expected to outperform the market based on prior trading patterns.

Conclusion




Institutional ownership trends suggest that the stock is cheap and the insider trading data indicates that insiders are bearish. Technical indicators (also) suggest that Kellogg Company (NYSE:K) is undervalued.

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