The firm also cut K's to a price target to $73
Kellogg Company (NYSE:K) is down 1.5% to trade at $68.28 at last check, after the security received a downgrade from Deutsche Bank to "hold" from "buy," in addition to a price-target cut to $73 from $74. The firm noted high inflation, supply chain challenges in raw materials, freight and labor, as well as recent workers' strikes as reasons for the bear note.
Deutsche Bank joins a bearish brokerage bunch. Coming into today, nine of the 12 firms covering K called it a tepid "hold" or worse, while only three said "strong buy." And while short interest fell 4.2% over the last two reporting periods, the 17.89 million shares sold short make up 5.7% of the stock's available float, or over one week's worth of pent-up buying power.
Over at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), K's 10-day put/call volume ratio of 1.56 sits higher than 86% of readings from the last 12 months, indicating puts are outnumbering calls in the options pits of late.
Today's dip also has K cooling from an April 22, roughly two-year high of $70.20, though the $68 mark looks ready to contain this pullback. The shares are now pacing for their first close below the 10-day moving average since March, though, despite adding 10.7% in the last six months.