Kraft Heinz Target of Unusually High Options Trading (NASDAQ:KHC)

Key Points

• Kraft Heinz saw unusually heavy options activity on Friday, with traders buying 74,729 call options — about 177% above its average daily volume.
• Analyst sentiment remains mixed but cautious: several firms recently adjusted price targets, and the stock currently has a consensus rating of "Reduce" with an average target price of $23.19.
• The company reported better-than-expected quarterly results, topping EPS and revenue estimates, and it recently paid a $0.40 quarterly dividend that annualizes to a 6.3% yield.

Kraft Heinz Company (NASDAQ:KHC - Get Free Report) was the target of some unusual options trading activity on Friday. Stock traders bought 74,729 call options on the stock. This is an increase of 177% compared to the average daily volume of 26,984 call options.

Analyst Ratings Changes

A number of equities research analysts have recently commented on KHC shares. Wells Fargo & Company increased their price objective on Kraft Heinz from $23.00 to $25.00 and gave the company an "equal weight" rating in a research report on Wednesday, July 8th. Jefferies Financial Group decreased their target price on Kraft Heinz from $23.00 to $20.00 and set a "hold" rating on the stock in a report on Monday, March 30th. UBS Group boosted their target price on Kraft Heinz from $24.00 to $25.00 and gave the stock a "neutral" rating in a research report on Thursday, July 16th. Deutsche Bank Aktiengesellschaft upped their target price on Kraft Heinz from $20.00 to $22.00 and gave the company a "hold" rating in a report on Thursday, May 7th. Finally, Wall Street Zen upgraded Kraft Heinz from a "hold" rating to a "buy" rating in a research report on Saturday, July 4th. One equities research analyst has rated the stock with a Strong Buy rating, thirteen have issued a Hold rating and five have issued a Sell rating to the company's stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Reduce" and an average target price of $23.19.

Insider Buying and Selling

In related news, insider Diana Frost sold 18,502 shares of the firm's stock in a transaction that occurred on Thursday, June 18th. The shares were sold at an average price of $23.05, for a total transaction of $426,471.10. Following the completion of the sale, the insider directly owned 102,667 shares in the company, valued at approximately $2,366,474.35. This trade represents a 15.27% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. 0.24% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Kraft Heinz

Several hedge funds have recently bought and sold shares of the business. Jessup Wealth Management Inc purchased a new position in Kraft Heinz during the 4th quarter valued at about $27,000. Reflection Asset Management purchased a new stake in shares of Kraft Heinz in the fourth quarter worth approximately $28,000. DV Equities LLC acquired a new stake in shares of Kraft Heinz during the fourth quarter worth approximately $29,000. Cassaday & Co Wealth Management LLC acquired a new stake in shares of Kraft Heinz during the first quarter worth approximately $27,000. Finally, Key Capital Management INC purchased a new position in Kraft Heinz during the fourth quarter valued at approximately $29,000. 78.17% of the stock is owned by hedge funds and other institutional investors.

Kraft Heinz Stock Down 2.3%

Shares of NASDAQ:KHC opened at $25.36 on Friday. The firm has a 50 day simple moving average of $24.11 and a 200 day simple moving average of $23.56. Kraft Heinz has a 52 week low of $21.03 and a 52 week high of $29.19. The company has a debt-to-equity ratio of 0.46, a quick ratio of 0.82 and a current ratio of 1.20. The company has a market cap of $30.07 billion, a PE ratio of -5.22 and a beta of 0.09.

Kraft Heinz (NASDAQ:KHC - Get Free Report) last posted its quarterly earnings data on Wednesday, May 6th. The company reported $0.58 earnings per share for the quarter, topping the consensus estimate of $0.50 by $0.08. The firm had revenue of $6.05 billion for the quarter, compared to analysts' expectations of $5.89 billion. Kraft Heinz had a negative net margin of 23.05% and a positive return on equity of 7.26%. The company's quarterly revenue was up .8% compared to the same quarter last year. During the same period in the previous year, the company posted $0.62 EPS. Kraft Heinz has set its FY 2026 guidance at 1.980-2.100 EPS. As a group, research analysts expect that Kraft Heinz will post 2.07 earnings per share for the current 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 issued a dividend of $0.40 per share. The ex-dividend date was Friday, June 5th. This represents a $1.60 dividend on an annualized basis and a dividend yield of 6.3%. Kraft Heinz's payout ratio is currently -32.92%.

About Kraft Heinz

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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