Kraft Heinz (NASDAQ:KHC) Shares Down 7.5% - Here's What Happened

Key Points

• Kraft Heinz shares fell 7.5% during trading on Tuesday, closing at $25.89, following an increase in trading volume of 135% from the average.
• The company has been rated with an average of "Reduce" by analysts, with multiple brokerages adjusting price targets, including a downgrade from DZ Bank to a "hold" rating.
• Kraft Heinz recently declared a quarterly dividend of $0.40 per share, equivalent to an annualized yield of 6.1%, with a negative dividend payout ratio of -35.63%.

Kraft Heinz Company (NASDAQ:KHC - Get Free Report) dropped 7.5% during trading on Tuesday . The company traded as low as $25.85 and last traded at $25.89. Approximately 29,397,165 shares traded hands during mid-day trading, an increase of 135% from the average daily volume of 12,501,785 shares. The stock had previously closed at $27.97.

Analyst Upgrades and Downgrades

A number of brokerages have issued reports on KHC. DZ Bank downgraded Kraft Heinz from a "buy" rating to a "hold" rating and set a $31.00 price target for the company. in a report on Friday, May 9th. Wells Fargo & Company boosted their price target on Kraft Heinz from $27.00 to $29.00 and gave the company an "equal weight" rating in a report on Monday, July 14th. Mizuho set a $29.00 price objective on Kraft Heinz and gave the company a "neutral" rating in a research note on Wednesday, May 28th. JPMorgan Chase & Co. began coverage on Kraft Heinz in a research note on Wednesday, August 20th. They issued a "neutral" rating and a $27.00 price objective for the company. Finally, The Goldman Sachs Group upgraded Kraft Heinz from a "sell" rating to a "neutral" rating and upped their target price for the company from $25.00 to $27.00 in a report on Wednesday, June 25th. Sixteen analysts have rated the stock with a Hold rating and three have given a Sell rating to the stock. According to MarketBeat.com, Kraft Heinz currently has an average rating of "Reduce" and an average price target of $30.12.

Kraft Heinz Stock Down 7.0%

The business has a 50 day moving average of $27.38 and a 200-day moving average of $28.28. The stock has a market cap of $30.80 billion, a PE ratio of -5.80, a P/E/G ratio of 3.26 and a beta of 0.23. The company has a current ratio of 1.07, a quick ratio of 0.66 and a debt-to-equity ratio of 0.47.

Kraft Heinz (NASDAQ:KHC - Get Free Report) last released its quarterly earnings results on Wednesday, July 30th. The company reported $0.69 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.64 by $0.05. The firm had revenue of $6.35 billion for 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 firm's quarterly revenue was down 1.9% compared to the same quarter last year. During the same quarter last year, the business posted $0.78 EPS. Kraft Heinz has set its FY 2025 guidance at 2.510-2.670 EPS. Equities research analysts predict that Kraft Heinz Company will post 2.68 EPS for the current fiscal year.

Kraft Heinz Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, September 26th. Investors of record on Friday, August 29th will be paid a dividend of $0.40 per share. This represents a $1.60 dividend on an annualized basis and a yield of 6.1%. The ex-dividend date is Friday, August 29th. Kraft Heinz's dividend payout ratio (DPR) is currently -35.63%.

Insider Transactions at Kraft Heinz

In other Kraft Heinz news, Director Elio Leoni Sceti sold 25,000 shares of Kraft Heinz stock in a transaction that occurred on Friday, July 18th. The stock was sold at an average price of $27.91, for a total value of $697,750.00. Following the transaction, the director directly owned 40,000 shares in the company, valued at approximately $1,116,400. This trade represents a 38.46% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 0.35% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Vanguard Group Inc. boosted its stake in shares of Kraft Heinz by 0.4% in the second quarter. Vanguard Group Inc. now owns 102,435,702 shares of the company's stock valued at $2,644,890,000 after buying an additional 454,868 shares in the last quarter. State Street Corp boosted its stake in shares of Kraft Heinz by 1.0% in the second quarter. State Street Corp now owns 46,376,394 shares of the company's stock valued at $1,197,438,000 after buying an additional 462,963 shares in the last quarter. Geode Capital Management LLC boosted its stake in shares of Kraft Heinz by 14.7% in the second quarter. Geode Capital Management LLC now owns 26,446,203 shares of the company's stock valued at $681,663,000 after buying an additional 3,392,470 shares in the last quarter. Invesco Ltd. boosted its stake in shares of Kraft Heinz by 7.1% in the second quarter. Invesco Ltd. now owns 17,584,674 shares of the company's stock valued at $454,036,000 after buying an additional 1,171,262 shares in the last quarter. Finally, Norges Bank purchased a new stake in shares of Kraft Heinz in the second quarter valued at approximately $276,159,000. 78.17% of the stock is currently owned by hedge funds and other institutional investors.

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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