Kraft Heinz (NASDAQ:KHC) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued on Wednesday.
According to Zacks, “Kraft Heinz posted lower-than-expected results in the fourth quarter of 2017 where earnings of 90 cents per share missed the Zacks Consensus Estimate by 6.3% while net sales missed the same by 0.3%. Net sales increased by a meager 0.3% year over year, but earnings declined 1.1% from the year-ago level. Sales growth continued to face challenges in the quarter due to softness in the U.S. retail environment. Organic sales in the United States declined 1.1% year over year due to lower volume. Soft consumer demand in North America and Canada along with a 4% year-over-year decline in gross profit affected the company’s fourth-quarter earnings. Kraft Heinz has been struggling due to the shift in consumer preferences toward natural and organic ingredients over packaged and processed food. Kraft Heinz’s shares have underperformed the industry in the past year and earnings estimates are trending downward for 2018 over the last 30 days.”
Other analysts have also recently issued reports about the stock. Morgan Stanley lowered their target price on shares of Kraft Heinz from $88.00 to $80.00 and set an “overweight” rating for the company in a research note on Tuesday, February 20th. Susquehanna Bancshares lowered their target price on shares of Kraft Heinz from $80.00 to $77.00 and set a “neutral” rating for the company in a research note on Thursday, February 15th. Credit Suisse Group reiterated an “outperform” rating and issued a $77.00 target price (down from $92.00) on shares of Kraft Heinz in a research note on Tuesday, February 20th. Vetr upgraded shares of Kraft Heinz from a “buy” rating to a “strong-buy” rating and set a $85.31 target price for the company in a research note on Monday, February 5th. Finally, BMO Capital Markets lowered their target price on shares of Kraft Heinz from $82.00 to $74.00 and set a “market perform” rating for the company in a research note on Tuesday, February 20th. Two analysts have rated the stock with a sell rating, four have issued a hold rating, fourteen have assigned a buy rating and one has issued a strong buy rating to the company. The company currently has an average rating of “Buy” and a consensus price target of $85.78.
Kraft Heinz (NASDAQ:KHC) last released its earnings results on Friday, February 16th. The company reported $0.90 EPS for the quarter, missing analysts’ consensus estimates of $0.96 by ($0.06). The company had revenue of $6.88 billion during the quarter, compared to analyst estimates of $6.91 billion. Kraft Heinz had a return on equity of 7.20% and a net margin of 41.93%. The firm’s revenue for the quarter was up .3% on a year-over-year basis. During the same quarter last year, the business earned $0.08 earnings per share. equities research analysts expect that Kraft Heinz will post 3.85 earnings per share for the current fiscal year.
A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Schafer Cullen Capital Management Inc. lifted its stake in Kraft Heinz by 1.6% during the 2nd quarter. Schafer Cullen Capital Management Inc. now owns 3,471 shares of the company’s stock valued at $297,000 after acquiring an additional 55 shares during the period. WFG Advisors LP increased its holdings in shares of Kraft Heinz by 13.4% during the 2nd quarter. WFG Advisors LP now owns 4,385 shares of the company’s stock valued at $376,000 after purchasing an additional 517 shares in the last quarter. Aspen Investment Management Inc increased its holdings in shares of Kraft Heinz by 17.6% during the 3rd quarter. Aspen Investment Management Inc now owns 4,334 shares of the company’s stock valued at $336,000 after purchasing an additional 650 shares in the last quarter. National Planning Corp increased its holdings in shares of Kraft Heinz by 7.9% during the 3rd quarter. National Planning Corp now owns 9,009 shares of the company’s stock valued at $701,000 after purchasing an additional 660 shares in the last quarter. Finally, Greatmark Investment Partners Inc. increased its holdings in shares of Kraft Heinz by 13.7% during the 3rd quarter. Greatmark Investment Partners Inc. now owns 5,618 shares of the company’s stock valued at $436,000 after purchasing an additional 675 shares in the last quarter. Institutional investors and hedge funds own 63.24% of the company’s stock.
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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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