Deutsche Bank Bear Note Pressures Kellogg Stock Lower

The firm joins a bearish brokerage bunch

Digital Content Manager
Apr 25, 2022 at 11:15 AM
facebook twitter linkedin


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.

 

Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

 
Schaeffer's Daily Bulletin Offer
 


 


 
Special Offers from Schaeffer's Trading Partners