Fairfax Financial Holdings Ltd. Can Has $126.06 Million Stock Position in Kraft Heinz Company $KHC

Key Points

• Fairfax Financial boosted its Kraft Heinz stake by 45.4% in Q2 to 4,884,000 shares worth $126.06 million, making KHC about 6.7% of Fairfax’s portfolio and its fifth-largest holding.
• Several analysts trimmed price targets (generally to the $25–$27 range) and MarketBeat shows a consensus rating of Reduce with a consensus target price of $26.58.
• Kraft Heinz disclosed a quarterly dividend of $0.40 (annualized $1.60, ~6.6% yield), with the ex-dividend and record date on Nov 28 and payment scheduled for Dec 26.

Fairfax Financial Holdings Ltd. Can lifted its holdings in shares of Kraft Heinz Company (NASDAQ:KHC - Free Report) by 45.4% during the 2nd quarter, according to the company in its most recent filing with the SEC. The fund owned 4,884,000 shares of the company's stock after purchasing an additional 1,525,000 shares during the period. Kraft Heinz comprises about 6.7% of Fairfax Financial Holdings Ltd. Can's investment portfolio, making the stock its 5th biggest position. Fairfax Financial Holdings Ltd. Can owned 0.41% of Kraft Heinz worth $126,056,000 as of its most recent SEC filing.

Several other hedge funds have also added to or reduced their stakes in the business. Banque Transatlantique SA bought a new position in shares of Kraft Heinz during the first quarter valued at about $40,000. Mid American Wealth Advisory Group Inc. purchased a new stake in Kraft Heinz during the 2nd quarter valued at about $39,000. Hilltop National Bank purchased a new stake in Kraft Heinz during the 2nd quarter valued at about $41,000. MV Capital Management Inc. grew its position in Kraft Heinz by 300.7% during the 2nd quarter. MV Capital Management Inc. now owns 1,735 shares of the company's stock worth $45,000 after acquiring an additional 1,302 shares during the last quarter. Finally, Pinney & Scofield Inc. increased its stake in Kraft Heinz by 48.2% in the 2nd quarter. Pinney & Scofield Inc. now owns 1,851 shares of the company's stock worth $48,000 after purchasing an additional 602 shares during the period. 78.17% of the stock is owned by institutional investors.

Analyst Upgrades and Downgrades

A number of research firms have recently weighed in on KHC. Morgan Stanley dropped their price objective on Kraft Heinz from $28.00 to $27.00 and set an "equal weight" rating for the company in a research note on Thursday, October 30th. Piper Sandler dropped their price target on shares of Kraft Heinz from $30.00 to $25.00 and set a "neutral" rating for the company in a research report on Thursday, October 30th. BNP Paribas Exane decreased their price objective on shares of Kraft Heinz from $29.00 to $26.00 in a research report on Thursday, October 30th. Deutsche Bank Aktiengesellschaft lowered their price objective on shares of Kraft Heinz from $27.00 to $26.00 in a research note on Thursday, October 30th. Finally, TD Cowen cut their target price on Kraft Heinz from $28.00 to $26.00 and set a "hold" rating on the stock in a research note on Thursday, October 30th. One analyst has rated the stock with a Strong Buy rating, sixteen have given a Hold rating and four have issued a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Reduce" and a consensus target price of $26.58.

Kraft Heinz Price Performance

KHC stock opened at $24.34 on Monday. The company has a debt-to-equity ratio of 0.46, a current ratio of 1.13 and a quick ratio of 0.73. Kraft Heinz Company has a 1 year low of $23.70 and a 1 year high of $33.35. The firm has a 50-day moving average of $25.11 and a 200 day moving average of $26.28. The company has a market cap of $28.81 billion, a P/E ratio of -6.53 and a beta of 0.09.

Kraft Heinz (NASDAQ:KHC - Get Free Report) last posted its earnings results on Friday, July 8th. The company reported $0.72 earnings per share for the quarter. The firm had revenue of $6.39 billion for the quarter. Kraft Heinz had a positive return on equity of 7.26% and a negative net margin of 17.35%. On average, sell-side analysts forecast that Kraft Heinz Company will post 2.68 EPS for the current year.

Kraft Heinz Cuts Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, December 26th. Shareholders of record on Friday, November 28th will be given a dividend of $0.40 per share. The ex-dividend date of this dividend is Friday, November 28th. This represents a $1.60 annualized dividend and a yield of 6.6%. Kraft Heinz's dividend payout ratio (DPR) is currently -42.90%.

About Kraft Heinz

The Kraft Heinz Company, together with its subsidiaries, manufactures and markets food and beverage products in North America and internationally. Its products include condiments and sauces, cheese and dairy products, meals, meats, refreshment beverages, coffee, and other grocery products under the Kraft, Oscar Mayer, Heinz, Philadelphia, Lunchables, Velveeta, Ore-Ida, Maxwell House, Kool-Aid, Jell-O, Heinz, ABC, Master, Quero, Kraft, Golden Circle, Wattie's, Pudliszki, and Plasmon brands.

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