Kellogg's (K, $59.43) Cookie Brands Are Being Eyed By Ferrero, Hostess (TWNK, $11.67), B&G (BGS, $28.51)
Kellogg might have found interested buyers for some of its cookie businesses.
Last year, Kellogg expressed plans to divest its Keebler, Famous Amos and fruit snacks segments. And now, Hostess Brands, B&G Foods and Ferrero have reportedly offered their first-round bids on the brands, according to a CNBC report citing people familiar with the matter. If the deal goes through, Kellogg could receive more than $1.5 billion from the sale proceeds. Some private equity firms are also reportedly eyeing the brands.
In recent years, we’ve witnessed Ferrero, Hostess and B&G focus on expanding their offerings, by acquiring various snacks/cookie brands. In 2017, Ferrero paid around $1 billion to buy Ferrara Candy Company, and followed it with a $2.8 billion purchase of Nestle's U.S. candy business. Hostess last year acquired breakfast brands the Big Texas and Cloverhill from Aryzta. B&G bought Green Giant from General Mills for $765 million in 2015 and McCann's Irish oatmeal from TreeHouse Foods for $32 million last year. However, no official announcement has been made yet by these companies about their reported interest in Kellogg’s cookie brands.
Meanwhile, Kellogg is also looking to sell its Murray and Mother's cookies.
K's RSI Indicator recovers from overbought zone
The 10-day RSI Indicator for K moved out of overbought territory on May 09, 2023. This could be a sign that the stock is shifting from an upward trend to a downward trend. Traders may want to look at selling the stock or buying put options. Tickeron's A.I.dvisor looked at 33 instances where the indicator moved out of the overbought zone. In of the 33 cases the stock moved lower in the days that followed. This puts the odds of a move down at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on May 15, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on K as a result. In of 86 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for K turned negative on May 15, 2023. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 47 similar instances when the indicator turned negative. In of the 47 cases the stock turned lower in the days that followed. This puts the odds of success at .
K moved below its 50-day moving average on May 25, 2023 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where K declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
Bullish Trend Analysis
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 7 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where K advanced for three days, in of 348 cases, the price rose further within the following month. The odds of a continued upward trend are .
K may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In of 228 cases where K Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (5.724) is normal, around the industry mean (10.041). P/E Ratio (27.933) is within average values for comparable stocks, (35.075). Projected Growth (PEG Ratio) (2.625) is also within normal values, averaging (2.695). Dividend Yield (0.035) settles around the average of (0.059) among similar stocks. P/S Ratio (1.487) is also within normal values, averaging (7.016).
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 79, placing this stock better than average.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. K’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
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