The Kraft Heinz Company (KHC) Lowered to “Sell” at Zacks Investment Research
The Kraft Heinz Company (NASDAQ:KHC) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report issued on Tuesday.
According to Zacks, “Kraft Heinz posted second-quarter 2017 results wherein earnings surpassed the Zacks Consensus Estimate but revenues missed the same. Net sales of $6.68 billion fell shy of the Zacks Consensus Estimate of $6.69 and declined 1.7% year over year due to soft consumer demand in North America and Canada. The company’s overall organic sales growth also declined 0.9% in the quarter on 0.4% lower pricing and 0.5% volume/mix decline. Organic sales declined across all its segments barring Rest of the World. Kraft Heinz has been struggling due to the shift in consumer preference toward natural and organic ingredients over packaged and processed food. Although Kraft Heinz’s shares have performed better than the industry year to date, estimates are trending downward for 2017 and 2018 over the last 30 days.”
Several other analysts have also recently commented on the company. Credit Suisse Group restated an “outperform” rating on shares of The Kraft Heinz in a research report on Sunday, April 23rd. BidaskClub cut The Kraft Heinz from a “hold” rating to a “sell” rating in a research report on Wednesday, June 21st. Consumer Edge upgraded The Kraft Heinz to an “overweight” rating in a research report on Thursday, May 4th. J P Morgan Chase & Co restated an “overweight” rating and issued a $99.00 target price (down from $102.00) on shares of The Kraft Heinz in a research report on Wednesday, June 28th. Finally, Susquehanna Bancshares Inc restated a “neutral” rating and issued a $91.00 target price (down from $99.00) on shares of The Kraft Heinz in a research report on Monday, July 10th. Two equities research analysts have rated the stock with a sell rating, six have assigned a hold rating and eleven have given a buy rating to the company’s stock. The company has a consensus rating of “Hold” and a consensus price target of $97.96.
Shares of The Kraft Heinz (NASDAQ:KHC) opened at 87.02 on Tuesday. The Kraft Heinz has a 1-year low of $79.69 and a 1-year high of $97.77. The company has a 50 day moving average price of $86.92 and a 200-day moving average price of $89.90. The stock has a market capitalization of $105.96 billion, a P/E ratio of 30.97 and a beta of 0.44.
The Kraft Heinz (NASDAQ:KHC) last posted its earnings results on Thursday, August 3rd. The company reported $0.98 EPS for the quarter, beating the consensus estimate of $0.96 by $0.02. The Kraft Heinz had a return on equity of 7.52% and a net margin of 14.67%. The firm had revenue of $6.68 billion for the quarter, compared to analysts’ expectations of $6.73 billion. During the same period last year, the firm earned $0.85 EPS. The firm’s revenue was down 1.7% compared to the same quarter last year. On average, equities research analysts forecast that The Kraft Heinz will post $3.24 EPS for the current fiscal year.
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A number of institutional investors have recently modified their holdings of the stock. Vanguard Group Inc. raised its stake in The Kraft Heinz by 3.9% in the first quarter. Vanguard Group Inc. now owns 42,149,547 shares of the company’s stock valued at $3,827,601,000 after buying an additional 1,585,231 shares in the last quarter. BlackRock Inc. raised its stake in The Kraft Heinz by 2,314.8% in the first quarter. BlackRock Inc. now owns 32,552,898 shares of the company’s stock valued at $2,956,129,000 after buying an additional 31,204,852 shares in the last quarter. State Street Corp raised its stake in The Kraft Heinz by 2.8% in the first quarter. State Street Corp now owns 24,579,995 shares of the company’s stock valued at $2,232,113,000 after buying an additional 680,941 shares in the last quarter. FMR LLC raised its stake in The Kraft Heinz by 9.8% in the first quarter. FMR LLC now owns 8,856,976 shares of the company’s stock valued at $804,302,000 after buying an additional 790,267 shares in the last quarter. Finally, Morgan Stanley raised its stake in The Kraft Heinz by 55.6% in the first quarter. Morgan Stanley now owns 8,364,778 shares of the company’s stock valued at $759,605,000 after buying an additional 2,988,664 shares in the last quarter. 62.01% of the stock is owned by hedge funds and other institutional investors.
The Kraft Heinz Company Profile
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.
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