Kellogg Company (NYSE: K) has announced it is splitting up into three publicly traded companies: snacks, cereal and plant-based foods. The three lines are expected to go solo next year. Since the announcement, Kellogg stock increased 2% yesterday alone, and is up 6% over this year.
Chris Beauchamp, Chief Market Analyst at IG comments on why Kelloggs made this decision and what the outlook is as a result:
Q1 2022 hedge fund letters, conferences and more
After 110% YTD Returns, Crispin Odey Reshuffles His Senior Team [Exclusive]
After a challenging decade, 2022 is shaping up to be one of the best years ever for Crispin Odey and the rest of the team at Odey Asset Management. In the month of May, the firm’s flagship hedge fund, Odey European, returned 14%, boosting its returns for the year to 110%. Following a 54% gain Read More
“Companies go through cycles, and Kellogg is in one now. The decision has been taken to allow the company (or companies) to focus squarely on their key products and at least provides a change in strategy that appears to have been given the market seal of approval (I note it was in a rising market yesterday anyway ).
In addition, no one could ever suggest Kellogg was a go-to tech stock, and its earnings reliability and relative stickiness make it a haven of calm. Further volatility over the summer will only boost its appeal. ”
Established in 1974, IG is a global leader providing trading and investment opportunities to people worldwide. IG analysts report every day on the latest changes in the financial markets, providing timely fundamental, economic, and technical analysis and a close examination of promising chart formations with live currency quotes. IG also provides analysis of market moves, explaining economic, political, and technical factors driving the market.
Chris Beauchamp first started at IG in 2010, and in that time has become a regular commentator and analyst for the financial press and TV, with appearances on all the major financial channels as well as the BBC and Sky News. His background is in equity research and analysis, and he uses these skills to provide in-depth reports on stock market movements.