Kraft Heinz Sees Unusually High Options Volume (NASDAQ:KHC)

Key Points

• Kraft Heinz saw unusually heavy options activity on Thursday, with investors buying 68,838 call options — about 143% above its typical daily volume.
• Insider Diana Frost sold 18,502 shares at an average price of $23.05, trimming her position by 15.27%. Despite that sale, institutional ownership remains high at 78.17%.
• The stock was little changed, slipping to $24.89 on lighter-than-average trading, while the company continues to offer a 6.4% dividend yield and has analyst sentiment clustered around a “Reduce” rating.

Kraft Heinz Company (NASDAQ:KHC - Get Free Report) was the recipient of some unusual options trading activity on Thursday. Stock investors acquired 68,838 call options on the stock. This is an increase of approximately 143% compared to the typical daily volume of 28,302 call options.

Insider Transactions at Kraft Heinz

In related news, insider Diana Frost sold 18,502 shares of Kraft Heinz stock in a transaction on Thursday, June 18th. The shares were sold at an average price of $23.05, for a total value of $426,471.10. Following the completion of the sale, the insider owned 102,667 shares of the company's stock, valued at approximately $2,366,474.35. The trade was a 15.27% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. 0.24% of the stock is owned by company insiders.

Institutional Investors Weigh In On Kraft Heinz

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Auto Owners Insurance Co increased its position in shares of Kraft Heinz by 3,034.1% in the fourth quarter. Auto Owners Insurance Co now owns 16,477,002 shares of the company's stock worth $39,957,000 after purchasing an additional 15,951,271 shares during the period. Norges Bank bought a new stake in Kraft Heinz during the fourth quarter worth about $332,382,000. Barclays PLC lifted its position in Kraft Heinz by 77.8% during the fourth quarter. Barclays PLC now owns 8,973,146 shares of the company's stock worth $217,599,000 after purchasing an additional 3,926,141 shares during the period. California Public Employees Retirement System grew its stake in Kraft Heinz by 94.8% during the first quarter. California Public Employees Retirement System now owns 4,347,594 shares of the company's stock worth $97,777,000 after buying an additional 2,116,175 shares in the last quarter. Finally, KBC Group NV increased its holdings in Kraft Heinz by 226.3% in the 1st quarter. KBC Group NV now owns 2,990,755 shares of the company's stock valued at $67,262,000 after buying an additional 2,074,270 shares during the period. 78.17% of the stock is currently owned by institutional investors and hedge funds.

Kraft Heinz Trading Down 0.1%

Shares of NASDAQ KHC traded down $0.03 during mid-day trading on Thursday, hitting $24.89. The company's stock had a trading volume of 1,943,254 shares, compared to its average volume of 15,361,023. Kraft Heinz has a one year low of $21.03 and a one year high of $29.19. The company's fifty day simple moving average is $23.58 and its 200-day simple moving average is $23.46. The company has a debt-to-equity ratio of 0.46, a current ratio of 1.20 and a quick ratio of 0.82. The stock has a market cap of $29.51 billion, a price-to-earnings ratio of -5.13 and a beta of 0.09.

Kraft Heinz (NASDAQ:KHC - Get Free Report) last posted its quarterly earnings results on Wednesday, May 6th. The company reported $0.58 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.50 by $0.08. Kraft Heinz had a positive return on equity of 7.26% and a negative net margin of 23.05%.The business had revenue of $6.05 billion for the quarter, compared to analyst estimates of $5.89 billion. During the same period last year, the company earned $0.62 EPS. The firm's revenue was up .8% on a year-over-year basis. Kraft Heinz has set its FY 2026 guidance at 1.980-2.100 EPS. On average, sell-side analysts anticipate that Kraft Heinz will post 2.07 earnings per share for the current fiscal year.

Kraft Heinz Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Friday, June 26th. Stockholders of record on Friday, June 5th were paid a dividend of $0.40 per share. This represents a $1.60 annualized dividend and a dividend yield of 6.4%. The ex-dividend date of this dividend was Friday, June 5th. Kraft Heinz's dividend payout ratio (DPR) is currently -32.92%.

Analyst Upgrades and Downgrades

KHC has been the topic of a number of analyst reports. UBS Group upped their price target on Kraft Heinz from $23.00 to $24.00 and gave the company a "neutral" rating in a research report on Friday, May 8th. BTIG Research started coverage on shares of Kraft Heinz in a research note on Monday, April 13th. They issued a "neutral" rating on the stock. Jefferies Financial Group lowered their target price on shares of Kraft Heinz from $23.00 to $20.00 and set a "hold" rating on the stock in a report on Monday, March 30th. Weiss Ratings reiterated a "sell (d)" rating on shares of Kraft Heinz in a research report on Tuesday, April 21st. Finally, TD Cowen cut their price target on shares of Kraft Heinz from $24.00 to $20.00 and set a "hold" rating for the company in a report on Wednesday, March 25th. One analyst has rated the stock with a Strong Buy rating, thirteen have issued a Hold rating and five have assigned a Sell rating to the company's stock. According to data from MarketBeat, the stock presently has an average rating of "Reduce" and an average price target of $23.00.

Kraft Heinz Company Profile

The Kraft Heinz Company NASDAQ: KHC is a global food and beverage company formed in 2015 through the merger of Kraft Foods Group and H.J. Heinz Company. The combination created one of the largest packaged-food companies in the world, built around well-known consumer brands. The merger was supported by major investors and established a multi-national platform for branded food products.

Kraft Heinz develops, manufactures, markets and distributes a broad portfolio of branded packaged foods and condiments.

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