Kraft Heinz (NASDAQ:KHC) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report released on Tuesday, Zacks.com reports. They currently have a $30.00 target price on the stock. Zacks Investment Research‘s price objective suggests a potential upside of 5.97% from the stock’s current price.
According to Zacks, “Kraft Heinz, which has underperformed the industry in the past three months, has been battling cost-related hurdles. The trend lingered in the first half of fiscal 2019, wherein high fixed and supply chain costs were prime deterrents. In supply chain, inflationary trends were mainly witnessed in packaging, manufacturing and logistics. Further, performance in the first half was hindered by inventory reduction actions undertaken by retail partners in the United States and Canada. Management is apprehensive that such headwinds may persist in the coming periods. Additionally, performance in the first half was weighed down by adverse currency impacts. Nevertheless, Kraft Heinz is on track with cost savings and productivity initiatives. The company is focused on product development through innovation and well-chalked marketing plans.”
KHC has been the subject of a number of other reports. Wells Fargo & Co reissued a “hold” rating on shares of Kraft Heinz in a research note on Tuesday, September 3rd. Barclays set a $30.00 price objective on shares of Kraft Heinz and gave the stock a “hold” rating in a report on Friday, August 9th. UBS Group set a $30.00 price objective on shares of Kraft Heinz and gave the stock a “hold” rating in a report on Friday, August 9th. Credit Suisse Group set a $26.00 price objective on shares of Kraft Heinz and gave the stock a “sell” rating in a report on Friday, August 9th. Finally, BidaskClub upgraded shares of Kraft Heinz from a “sell” rating to a “hold” rating in a report on Thursday, September 12th. Five research analysts have rated the stock with a sell rating, seventeen have issued a hold rating and two have given a buy rating to the company. The stock has a consensus rating of “Hold” and a consensus price target of $35.76.
Kraft Heinz (NASDAQ:KHC) last released its quarterly earnings results on Thursday, August 8th. The company reported $0.78 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $0.75 by $0.03. Kraft Heinz had a negative net margin of 43.40% and a positive return on equity of 6.06%. The company had revenue of $5.96 billion during the quarter, compared to the consensus estimate of $6.07 billion. During the same period in the prior year, the firm earned $0.90 earnings per share. Kraft Heinz’s revenue was down 5.5% on a year-over-year basis. Research analysts expect that Kraft Heinz will post 2.65 earnings per share for the current year.
In other news, Director Damme Alexandre Van purchased 250,000 shares of the business’s stock in a transaction dated Wednesday, September 18th. The shares were purchased at an average price of $28.45 per share, for a total transaction of $7,112,500.00. Following the completion of the acquisition, the director now directly owns 8,168 shares in the company, valued at approximately $232,379.60. The purchase was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, Director Jorge P. Lemann purchased 3,496,503 shares of the business’s stock in a transaction dated Monday, September 16th. The shares were purchased at an average price of $28.60 per share, for a total transaction of $99,999,985.80. Following the acquisition, the director now owns 3,516,449 shares of the company’s stock, valued at $100,570,441.40. The disclosure for this purchase can be found here. Corporate insiders own 0.29% of the company’s stock.
Several large investors have recently bought and sold shares of KHC. Nuveen Asset Management LLC bought a new position in Kraft Heinz during the second quarter valued at approximately $81,466,000. BlackRock Inc. lifted its position in Kraft Heinz by 5.1% during the second quarter. BlackRock Inc. now owns 38,743,271 shares of the company’s stock valued at $1,202,590,000 after purchasing an additional 1,884,480 shares during the period. Marshall Wace LLP bought a new position in Kraft Heinz during the second quarter valued at approximately $36,909,000. Balyasny Asset Management LLC bought a new position in Kraft Heinz during the second quarter valued at approximately $35,839,000. Finally, Marshall Wace North America L.P. lifted its position in Kraft Heinz by 2,391.8% during the second quarter. Marshall Wace North America L.P. now owns 1,095,763 shares of the company’s stock valued at $34,012,000 after purchasing an additional 1,051,788 shares during the period. Hedge funds and other institutional investors own 56.52% of the company’s stock.
About Kraft Heinz
The Kraft Heinz Company manufactures and markets food and beverage products in the United States, Canada, Europe, and internationally. Its products include condiments and sauces, cheese and dairy products, meals, meats, refreshment beverages, coffee, and other grocery products. The company offers its products under the Kraft, Oscar Mayer, Heinz, Philadelphia, Lunchables, Velveeta, Planters, Maxwell House, Capri Sun, Ore-Ida, Kool-Aid, Jell-O, Cracker Barrel, P'Tit Cheese, Tassimo, Classico, Plasmon, Pudliszki, Honig, HP, Benedicta, ABC, Master, Quero, Golden Circle, Wattie's, Glucon D, and Complan names.
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