Zachary Gund, a director at WK Kellogg Co (KLG), recently bought 250,000 shares over two separate transactions. The buys increased his position by 58%, and came to a total cost of about $4.4 million.
That marks the first insider buy since another director picked up 1,000 shares back in February. Going back to 2023, a number of company executives were buyers of shares, including the company CEO for nearly $1 million, and the company CFO for nearly $450,000.
Overall, Kellogg insiders own 6.8% of shares.
The packaged cereal manufacturer is up 48% over the past year, far outperforming the overall stock market.
Revenues for Kellogg declined 0.4% over the past year, reflecting low demand for cereal following a rise in store prices and a revolt from consumers. Even with the lackluster sales growth, shares trade at less than 10 times forward earnings.
Action to take: With a rising share price and a basket of top brands, investors may like shares of Kellogg as a momentum play. They still own many of the top brands in the cereal market, and can continue to earn top dollar even amid a slow market for cereal sales.
For traders, the March 2025 $20 calls, last trading for about $1.05, could see mid-to-high double-digit returns from a further uptrend in shares in the months ahead.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.