Analysts at Standpoint Research, assumed coverage of The Kraft Heinz Company (NASDAQ:KHC) with Buy recommendation, according to their opinion released on December 26. Susquehanna analysts have downgraded their rating of KHC stock from Neutral to Negative in a separate flash note to investors on November 02.
The number of The Kraft Heinz Company (NASDAQ:KHC) shares shorted has fallen by 1,545,648 shares. When looking at a stock for a potential investment, you want to know what percentage of Wall Street is betting against you. That’s what short interest tells you. The most recent short interest data has been released for the December 31st settlement date, which shows a decrease in total short interest for KHC, to 17,890,486, a retreat of 7.95% since December 14th. Average daily volume for The Kraft Heinz Company at the December 31st settlement jumped to 9,325,825, as compared to 6,422,301 at the December 14th report. That brought days to cover to 1.918381, a 36.61% decrease from the 3.026351 days to cover recorded at the prior short interest data release. Looking at the experts’ opinion for the KHC stock we see that the average analyst recommendations at 2.4 suggests buying these shares.
By watching the trading activity of corporate insiders, it will become easier to get a sense of The Kraft Heinz Company (NASDAQ:KHC)’s prospects. The earliest insider trade took place on 08/07/2018. 3G Global Food Holdings Lp parted with a total of 20.63 million shares of company at average share price of $59.85. The total for the sales was set at $1234.72 million. After this transaction, the 10% Owner account balance stood at 561 million shares. The stock lost -23.79 percent since that insider sale. On 08/06/2018, Pelleissone Eduardo, EVP of Global Operations, sold 35 thousand shares at a price per share of $63.85. This removed 2.23 million shares from the insider’s fortune and the stock saw a -28.57 percent retreat in value since the news became public. This transaction left 53.67 thousand shares in the EVP of Global Operations account. On 04/02/2018, Director Mcdonald Mackey J performed a purchase transaction worth $98.58 thousand. This purchase at $64.73 each has added 1.52 thousand shares into the insider’s portfolio position. Meanwhile, shares have recorded -29.54 percent decrease since the transaction was reported. The insider now is left with 18.55 thousand shares remaining in the account. 3G Global Food Holdings Lp, who performs the 10% Owner job, sold 2.81 million shares for $244.47 million. The disposal occurred on 09/20/2016 was priced at $87.05 per share. The share price plunged -47.6 percent since the reporting date. 3G Global Food Holdings Lp now left with a stake of 584 million KHC stock worth $26636.24 million after the insider selling.
The Kraft Heinz Company (KHC) is expected to jump by 26.07 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $75-month high price target. This represents a whopping 64.44 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $59, which represents a return potential of 29.36 percent when compared to the closing price of the stock of $45.61 on Friday, January 11. The lowest price target for the stock is $41 — slightly more than -10.11 percent from KHC’s current share price.
The shares are currently floating around the first support level of $44.97. Below this, the next support is placed in the zone of $44.34. Till the time, the KHC stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 43.9 on daily chart, which may remain a cause for concern. If the price breaks below $44.34 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $46.06 mark may result into a pull-back move towards $46.5 level.
KHC shares accumulated 0.01 points or 0.02 percent on Friday to $45.61 with a light trade volume of 4.879 million shares. After opening the session at $45.79, the shares went as high as $45.8683 and as low as $44.785, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $55.6 billion and now has 1.22 billion shares outstanding. The Kraft Heinz Company (KHC) stock has lost -5.73 percent of market value in 21 trading days.
KHC stock has a trailing 3-year beta of 0.78, offering the possibility of a lower rate of return, but also posing less risk. The portion of a company’s profit allocated to each outstanding share of common stock was $2.82 a share in the trailing twelve months. The stock’s value has surged 5.97 percent year to date (YTD) against a decline of -41.44 percent in 12 month’s time. The company’s shares still trade -43.46 percent away from its 1-year high of $80.67 and 9.64 percent up from 52-week low of $41.60. The average consensus rating on the company is 2.4, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.
Shares of The Kraft Heinz Company (KHC) are trading at a P/E ratio of 18.35 times earnings reported for the past 12 months. The industry KHC operates in has an average P/E of 20.85. Its P/E ratio went as low as 0X and as high as 0 over the 5-year span. Further, it is sporting a 2.12 on the Price-to-Sales ratio. Compare this with the industry average P/S of 1.78. 36.2 percent is the gross profit margin for The Kraft Heinz Company and operating margin sits at 20.8 percent. Along with this, the net profit margin is 39.6 percent.