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KLG Stock Alert: 7 Things to Know as WK Kellogg Starts Trading

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  • WK Kellogg (KLG) stock is sliding following its public debut.
  • The company’s shares started trading following a spinoff from Kellogg.
  • Kellog has also undergone a name change and now operates as Kellanova (K).
KLG Stock - KLG Stock Alert: 7 Things to Know as WK Kellogg Starts Trading

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WK Kellogg (NYSE:KLG) stock made its public debut today as the cereal company completes its spinoff from Kellogg.

Let’s go over everything investors in Kellogg need to know about this split and how it affects the company.

WK Kellogg Spinoff Details

  • The first thing that investors need to know is Kellogg has changed its name to Kellanova (NYSE:K) following the spinoff of WK Kellogg.
  • This has that company keeping the K stock ticker while WK Kellogg adopts the new KLG stock ticker.
  • The spinoff resulted in investors in K stock receiving a single share of KLG stock for every four shares that they held.
  • With this spinoff, WK Kellogg now handles what was the original Kellogg’s cereal business.
  • The company decided to spin off this business as cereal sales were starting to stagnate.
  • Originally, the spinoff was also going to include the snack and plant-based food businesses as well, but those have remained as part of Kellanova.
  • The spinoff sees current Kellogg CEO Steve Cahillane managing Kellanova.

Jefferies analyst Rob Dickerson said the following about the Kellogg spinoff in a note to clients obtained by Yahoo Finance:

“While management guided to +3-5% long-term organic growth at the investor day, from our perspective there could be potential risk to that in the near term given North America still accounts for ~50% of pro-forma Kellanova revenues and year to date U.S. tracked channel retail volumes are down ~9%, a pace that has sustained in recent months.”

K stock is down 11.7%, and KLG stock is down 3.8% as of Monday morning.

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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.


Article printed from InvestorPlace Media, https://investorplace.com/2023/10/klg-stock-alert-7-things-to-know-as-wk-kellogg-starts-trading/.

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