Kraft Heinz (NASDAQ:KHC) Reaches New 12-Month Low - Should You Sell?

Key Points

• Kraft Heinz's stock has reached a new 52-week low, trading at $25.35 during mid-day on Monday, down from a closing price of $26.05.
• Despite recent stock declines, analysts have mixed opinions; 16 analysts refer to it as a "Hold", while one has upgraded it to a "Strong Buy" rating.
• The company recently announced a quarterly dividend of $0.40 per share, indicating a dividend yield of 6.2%, despite having a negative dividend payout ratio.

Kraft Heinz Company (NASDAQ:KHC - Get Free Report)'s stock price hit a new 52-week low during mid-day trading on Monday . The company traded as low as $25.35 and last traded at $25.59, with a volume of 8443776 shares. The stock had previously closed at $26.05.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently issued reports on the company. Hsbc Global Res raised Kraft Heinz to a "hold" rating in a research report on Friday, August 1st. Stifel Nicolaus reduced their price target on Kraft Heinz from $30.00 to $28.00 and set a "hold" rating on the stock in a research report on Wednesday, September 3rd. Wells Fargo & Company cut their target price on Kraft Heinz from $29.00 to $27.00 and set an "equal weight" rating for the company in a research note on Wednesday, September 3rd. UBS Group set a $28.00 target price on Kraft Heinz and gave the stock a "neutral" rating in a research note on Thursday, September 4th. Finally, DZ Bank upgraded Kraft Heinz from a "hold" rating to a "strong-buy" rating in a research note on Friday, September 19th. One investment analyst has rated the stock with a Strong Buy rating, sixteen have issued a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, Kraft Heinz presently has an average rating of "Hold" and a consensus price target of $29.76.

Kraft Heinz Stock Performance

The company has a debt-to-equity ratio of 0.47, a quick ratio of 0.66 and a current ratio of 1.07. The stock has a fifty day simple moving average of $27.27 and a two-hundred day simple moving average of $27.69. The stock has a market capitalization of $30.42 billion, a price-to-earnings ratio of -5.72, a P/E/G ratio of 3.04 and a beta of 0.23.

Kraft Heinz (NASDAQ:KHC - Get Free Report) last issued its quarterly earnings results on Wednesday, July 30th. The company reported $0.69 earnings per share for the quarter, topping analysts' consensus estimates of $0.64 by $0.05. The firm had revenue of $6.35 billion during the quarter, compared to the consensus estimate of $6.26 billion. Kraft Heinz had a positive return on equity of 7.40% and a negative net margin of 20.83%.The business's revenue was down 1.9% compared to the same quarter last year. During the same period last year, the business posted $0.78 EPS. Kraft Heinz has set its FY 2025 guidance at 2.510-2.670 EPS. Analysts forecast that Kraft Heinz Company will post 2.68 earnings per share for the current fiscal year.

Kraft Heinz Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, September 26th. Stockholders of record on Friday, August 29th were paid a $0.40 dividend. The ex-dividend date was Friday, August 29th. This represents a $1.60 annualized dividend and a dividend yield of 6.2%. Kraft Heinz's dividend payout ratio (DPR) is currently -35.63%.

Insider Activity at Kraft Heinz

In other news, Director Elio Leoni Sceti sold 25,000 shares of the firm's stock in a transaction dated Friday, July 18th. The stock was sold at an average price of $27.91, for a total value of $697,750.00. Following the completion of the sale, the director directly owned 40,000 shares in the company, valued at $1,116,400. This trade represents a 38.46% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. 0.35% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Kraft Heinz

Several hedge funds have recently modified their holdings of the company. Centaurus Financial Inc. increased its stake in shares of Kraft Heinz by 49.1% during the 4th quarter. Centaurus Financial Inc. now owns 4,933 shares of the company's stock worth $152,000 after purchasing an additional 1,625 shares during the last quarter. Wealth Enhancement Advisory Services LLC grew its position in Kraft Heinz by 109.0% in the fourth quarter. Wealth Enhancement Advisory Services LLC now owns 155,614 shares of the company's stock worth $4,779,000 after acquiring an additional 81,159 shares in the last quarter. Wellington Management Group LLP grew its position in Kraft Heinz by 39.6% in the fourth quarter. Wellington Management Group LLP now owns 176,864 shares of the company's stock worth $5,431,000 after acquiring an additional 50,211 shares in the last quarter. GAMMA Investing LLC lifted its stake in Kraft Heinz by 3,799.2% in the first quarter. GAMMA Investing LLC now owns 480,611 shares of the company's stock worth $15,794,000 after purchasing an additional 468,285 shares during the last quarter. Finally, Rothschild Investment LLC lifted its stake in Kraft Heinz by 1.8% in the first quarter. Rothschild Investment LLC now owns 38,782 shares of the company's stock worth $1,180,000 after purchasing an additional 689 shares during the last quarter. Institutional investors own 78.17% of the company's stock.

Kraft Heinz Company Profile

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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