Kraft Heinz Company (NASDAQ:KHC) Stock Has Average Target Price of $23.60 According to Analysts

Key Points

• Analysts remain cautious: Sixteen firms give Kraft Heinz an average “Reduce” rating, with five sells, ten holds and one buy. The average 12-month price target is $23.60, below the stock’s reported $24.34 price.
• Operating momentum is weak: Although quarterly EPS of $0.56 exceeded estimates, revenue fell 1.4% year over year to $6.26 billion, and analysts expect continued pressure from weaker volumes, cautious spending and higher costs.
• Income appeal faces scrutiny: Kraft Heinz pays a $0.40 quarterly dividend, representing a 6.6% annualized yield, but its negative net margin, negative reported EPS and payout-ratio concerns could raise questions about dividend sustainability.

Kraft Heinz Company (NASDAQ:KHC - Get Free Report) has received an average recommendation of "Reduce" from the sixteen ratings firms that are currently covering the stock, Marketbeat.com reports. Five equities research analysts have rated the stock with a sell rating, ten have given a hold rating and one has assigned a buy rating to the company. The average 12 month price target among brokerages that have covered the stock in the last year is $23.60.

A number of research firms have weighed in on KHC. Wall Street Zen downgraded Kraft Heinz from a "buy" rating to a "hold" rating in a report on Saturday, August 8th. UBS Group reissued a "neutral" rating on shares of Kraft Heinz in a research note on Thursday, October 15th. JPMorgan Chase & Co. reduced their price target on Kraft Heinz from $24.00 to $23.00 and set an "underweight" rating for the company in a report on Tuesday, October 20th. Barclays lowered their price target on Kraft Heinz from $26.00 to $25.00 and set an "equal weight" rating for the company in a research report on Friday, October 16th. Finally, Royal Bank Of Canada reiterated an "outperform" rating and issued a $32.00 price target on shares of Kraft Heinz in a research note on Thursday, September 24th.

Trending Headlines about Kraft Heinz

Here are the key news stories impacting Kraft Heinz this week:

• Positive Sentiment: Relative market outperformance: Kraft Heinz gained despite a weaker overall market, indicating company-specific support and continued interest in its defensive consumer-staples exposure. Why the Market Dipped But Kraft Heinz Gained Today
• Positive Sentiment: Essential-products portfolio: Kraft Heinz sells widely used condiments, dairy products, prepared meals, packaged meats and beverages through retail, wholesale and foodservice channels, which can support demand stability during uncertain economic conditions. Kraft Heinz vs. PepsiCo
• Neutral Sentiment: Peer comparison: Coverage comparing Kraft Heinz with competitors such as PepsiCo focuses on portfolio breadth and consumer-staples positioning, but does not identify a new company-specific catalyst. Comparing Kraft Heinz and Its Competitors
• Negative Sentiment: Weak Q3 expectations: Kraft Heinz is expected to report softer sales and earnings, reflecting weak volumes, cautious consumer spending and higher costs. Strategic investments could provide some support, but near-term results may remain pressured. Kraft Heinz to Report Q3 Earnings
• Negative Sentiment: Stagnant revenue concerns: Comparisons with faster-growing consumer-goods companies underscore Kraft Heinz’s limited revenue momentum, challenging the assumption that defensive staples automatically deliver steady growth. Kraft Heinz vs. Coca-Cola
• Negative Sentiment: Dividend and earnings-quality scrutiny: Reports highlighting negative reported EPS and questions about dividend coverage could increase investor concern about the safety of Kraft Heinz’s income appeal, even if cash generation supports current payments. Kraft Heinz EPS and Dividend Coverage

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in KHC. BlackRock Inc. bought a new position in Kraft Heinz in the 2nd quarter worth approximately $1,803,911,000. Pacer Advisors Inc. raised its position in shares of Kraft Heinz by 7.3% during the first quarter. Pacer Advisors Inc. now owns 9,270,503 shares of the company's stock valued at $208,494,000 after buying an additional 633,645 shares during the last quarter. Dimensional Fund Advisors LP raised its position in shares of Kraft Heinz by 1.9% during the first quarter. Dimensional Fund Advisors LP now owns 7,944,618 shares of the company's stock valued at $178,663,000 after buying an additional 149,034 shares during the last quarter. Nykredit A S purchased a new position in shares of Kraft Heinz in the second quarter worth $181,408,000. Finally, Deutsche Bank AG purchased a new position in shares of Kraft Heinz in the second quarter worth $179,876,000. Institutional investors own 78.17% of the company's stock.

Kraft Heinz Stock Performance

NASDAQ:KHC opened at $24.34 on Friday. The stock has a market cap of $28.86 billion, a P/E ratio of -8.51, a price-to-earnings-growth ratio of 2.99 and a beta of 0.12. The firm's fifty day simple moving average is $24.04 and its 200 day simple moving average is $23.89. Kraft Heinz has a twelve month low of $21.03 and a twelve month high of $28.09. The company has a quick ratio of 0.68, a current ratio of 1.06 and a debt-to-equity ratio of 0.49.

Kraft Heinz (NASDAQ:KHC - Get Free Report) last issued its quarterly earnings data on Wednesday, August 5th. The company reported $0.56 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.53 by $0.03. Kraft Heinz had a negative net margin of 13.64% and a positive return on equity of 7.10%. The business had revenue of $6.26 billion for the quarter, compared to the consensus estimate of $6.18 billion. During the same period in the previous year, the firm earned $0.69 EPS. The company's quarterly revenue was down 1.4% compared to the same quarter last year. Kraft Heinz has set its FY 2026 guidance at 2.030-2.090 EPS. As a group, research analysts predict that Kraft Heinz will post 2.06 EPS for the current year.

Kraft Heinz Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Friday, September 25th. Shareholders of record on Friday, September 4th were paid a dividend of $0.40 per share. This represents a $1.60 dividend on an annualized basis and a yield of 6.6%. The ex-dividend date was Friday, September 4th. Kraft Heinz's dividend payout ratio (DPR) is currently -55.94%.

About Kraft Heinz

The Kraft Heinz Company NASDAQ: KHC is a global food and beverage company that develops, manufactures and markets branded products for consumers, retailers and foodservice customers. Its portfolio includes condiments and sauces, cheese and dairy products, meals, meats, snacks, beverages and desserts.

The company's brands include Kraft, Heinz, Oscar Mayer, Philadelphia, Velveeta, Jell-O, Maxwell House, Lunchables, Capri Sun, Planters and Classico, among others. Products are sold through grocery stores, mass merchants, club stores, convenience retailers, e-commerce channels and foodservice distributors.

Kraft Heinz was created in 2015 through the merger of Kraft Foods Group and H.J.

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