Kraft Heinz (KHC) Sets New 12-Month Low After Earnings Miss

Kraft Heinz Co (NASDAQ:KHC)’s share price hit a new 52-week low on Friday following a weaker than expected earnings announcement. The stock traded as low as $50.50 and last traded at $51.05, with a volume of 932197 shares changing hands. The stock had previously closed at $56.20.

The company reported $0.78 earnings per share for the quarter, missing analysts’ consensus estimates of $0.81 by ($0.03). Kraft Heinz had a net margin of 40.85% and a return on equity of 6.16%. The business had revenue of $6.38 billion during the quarter, compared to analysts’ expectations of $6.31 billion. During the same period last year, the business posted $0.83 earnings per share. The company’s revenue for the quarter was up 1.6% compared to the same quarter last year.

The firm also recently announced a quarterly dividend, which will be paid on Friday, December 14th. Investors of record on Friday, November 16th will be issued a $0.625 dividend. This represents a $2.50 dividend on an annualized basis and a dividend yield of 4.93%. The ex-dividend date is Thursday, November 15th. Kraft Heinz’s dividend payout ratio (DPR) is presently 70.42%.

A number of research analysts recently weighed in on KHC shares. Morgan Stanley started coverage on shares of Kraft Heinz in a report on Monday, September 17th. They issued an “underweight” rating and a $52.00 target price for the company. Zacks Investment Research lowered shares of Kraft Heinz from a “hold” rating to a “sell” rating in a report on Wednesday, September 5th. BidaskClub lowered shares of Kraft Heinz from a “sell” rating to a “strong sell” rating in a report on Saturday, September 29th. Bank of America set a $85.00 target price on shares of Kraft Heinz and gave the company a “buy” rating in a report on Monday, August 6th. Finally, Credit Suisse Group raised shares of Kraft Heinz to a “hold” rating and set a $52.00 target price for the company in a report on Thursday, October 4th. Five equities research analysts have rated the stock with a sell rating, four have issued a hold rating, nine have given a buy rating and one has assigned a strong buy rating to the company. Kraft Heinz currently has an average rating of “Hold” and a consensus price target of $67.74.

In other news, EVP Eduardo Pelleissone sold 35,000 shares of the business’s stock in a transaction on Monday, August 6th. The shares were sold at an average price of $63.85, for a total transaction of $2,234,750.00. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, major shareholder Global Food Holdings Lp 3G sold 20,630,314 shares of the business’s stock in a transaction on Tuesday, August 7th. The shares were sold at an average price of $59.85, for a total transaction of $1,234,724,292.90. The disclosure for this sale can be found here. 26.81% of the stock is owned by insiders.

Several institutional investors and hedge funds have recently modified their holdings of the company. Mn Services Vermogensbeheer B.V. boosted its stake in shares of Kraft Heinz by 2.1% during the third quarter. Mn Services Vermogensbeheer B.V. now owns 97,782 shares of the company’s stock valued at $5,389,000 after purchasing an additional 2,000 shares during the period. WINTON GROUP Ltd boosted its stake in shares of Kraft Heinz by 4,521.6% during the third quarter. WINTON GROUP Ltd now owns 186,528 shares of the company’s stock valued at $10,280,000 after purchasing an additional 182,492 shares during the period. Decatur Capital Management Inc. purchased a new stake in shares of Kraft Heinz during the third quarter valued at $3,589,000. Blume Capital Management Inc. boosted its stake in shares of Kraft Heinz by 166.7% during the third quarter. Blume Capital Management Inc. now owns 2,080 shares of the company’s stock valued at $115,000 after purchasing an additional 1,300 shares during the period. Finally, Stockman Wealth Management Inc. boosted its stake in shares of Kraft Heinz by 8.3% during the third quarter. Stockman Wealth Management Inc. now owns 62,485 shares of the company’s stock valued at $3,444,000 after purchasing an additional 4,812 shares during the period. 63.02% of the stock is owned by hedge funds and other institutional investors.

The company has a market cap of $68.10 billion, a PE ratio of 14.29, a price-to-earnings-growth ratio of 1.98 and a beta of 0.51. The company has a debt-to-equity ratio of 0.48, a quick ratio of 0.70 and a current ratio of 1.05.

Kraft Heinz Company Profile (NASDAQ:KHC)

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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