Kraft Heinz Co. (NASDAQ:KHC) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a report released on Tuesday.
According to Zacks, “Kraft Heinz posted mixed third-quarter results wherein earnings beat the Zacks Consensus Estimate and revenues missed the same. Lower volume/mix and pricing had hurt revenues. Kraft Heinz’s categories were affected by soft global retail and consumer demand. Consumption trends in a number of its key categories proved to be a drag. Although the company registered strong gains from innovation led by Lunchables in its Mac & Cheese renovation, and improved volume and mix benefits in its coffee business, lower shipments in cold cuts, foodservice and nuts offset much of the gains. Management had warned that consumer trends are likely to remain challenged in both North America and Europe in the remainder of 2016. That said, earnings surged 88.6% year over year as cost savings mitigated weak sales trends. The company also garnered $330 million of cost savings in the quarter and is on track to save $1.5 billion in annual costs by the end of 2017.”
KHC has been the subject of several other reports. Goldman Sachs Group Inc. restated a “conviction-buy” rating and issued a $98.00 price objective (up from $93.00) on shares of Kraft Heinz in a research note on Friday, July 15th. Royal Bank Of Canada upped their target price on shares of Kraft Heinz from $92.00 to $96.00 and gave the stock an “outperform” rating in a report on Friday, August 5th. Vetr raised shares of Kraft Heinz from a “sell” rating to a “buy” rating and set a $93.36 target price for the company in a report on Monday, July 11th. Credit Suisse Group AG reaffirmed an “outperform” rating and issued a $100.00 target price (up previously from $98.00) on shares of Kraft Heinz in a report on Tuesday, August 16th. Finally, Susquehanna reaffirmed a “buy” rating and issued a $98.00 target price on shares of Kraft Heinz in a report on Sunday, July 17th. Two analysts have rated the stock with a sell rating, one has assigned a hold rating, eleven have assigned a buy rating and one has issued a strong buy rating to the company’s stock. The stock currently has an average rating of “Buy” and a consensus price target of $98.96.
Kraft Heinz (NASDAQ:KHC) traded up 0.62% on Tuesday, hitting $82.95. The stock had a trading volume of 1,230,342 shares. Kraft Heinz has a 52-week low of $68.18 and a 52-week high of $90.54. The firm has a market cap of $100.97 billion, a price-to-earnings ratio of 36.51 and a beta of 0.48. The company’s 50 day moving average price is $85.96 and its 200 day moving average price is $86.84.
Kraft Heinz (NASDAQ:KHC) last posted its quarterly earnings data on Thursday, November 3rd. The company reported $0.83 EPS for the quarter, topping the consensus estimate of $0.74 by $0.09. The firm earned $6.27 billion during the quarter, compared to analyst estimates of $4.70 billion. Kraft Heinz had a return on equity of 6.40% and a net margin of 10.44%. Kraft Heinz’s revenue was up 2.4% on a year-over-year basis. During the same period in the prior year, the business posted $0.44 EPS. Analysts expect that Kraft Heinz will post $3.24 EPS for the current year.
The firm also recently declared a quarterly dividend, which will be paid on Friday, December 16th. Investors of record on Friday, December 2nd will be issued a $0.60 dividend. This represents a $2.40 dividend on an annualized basis and a dividend yield of 2.89%. The ex-dividend date of this dividend is Wednesday, November 30th. Kraft Heinz’s payout ratio is 105.26%.
In related news, major shareholder Global Food Holdings Lp 3G sold 2,808,371 shares of the stock in a transaction dated Tuesday, September 20th. The shares were sold at an average price of $87.05, for a total value of $244,468,695.55. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 26.92% of the stock is currently owned by corporate insiders.
Several hedge funds and other institutional investors have recently made changes to their positions in the stock. Bollard Group LLC raised its stake in Kraft Heinz by 815.4% in the third quarter. Bollard Group LLC now owns 1,126 shares of the company’s stock worth $101,000 after buying an additional 1,003 shares during the period. Cornerstone Advisors Inc. raised its stake in Kraft Heinz by 129.0% in the third quarter. Cornerstone Advisors Inc. now owns 1,223 shares of the company’s stock worth $109,000 after buying an additional 689 shares during the period. Enterprise Financial Services Corp raised its stake in Kraft Heinz by 8.5% in the second quarter. Enterprise Financial Services Corp now owns 1,280 shares of the company’s stock worth $113,000 after buying an additional 100 shares during the period. CWM LLC raised its stake in Kraft Heinz by 21.9% in the third quarter. CWM LLC now owns 1,367 shares of the company’s stock worth $122,000 after buying an additional 246 shares during the period. Finally, TLP Group LLC purchased a new stake in Kraft Heinz during the third quarter worth $126,000. 61.69% of the stock is owned by hedge funds and other institutional investors.
About Kraft Heinz
The Kraft Heinz Company is a food and beverage company. The Company is engaged in the manufacturing and marketing of food and beverage products, including condiments and sauces, cheese and dairy, meals, meats, refreshment beverages, coffee and other grocery products. The Company’s segments include the United States, Canada and Europe.