The Kraft Heinz Company (NASDAQ: KHC) stock fell -0.52% on Friday to $34.26 against a previous-day closing price of $34.44. With 5.89 million shares changed hands, the volume of the stock remained lighter than its average volume of 7.68 million shares. During the session, the Packaged Foods company that operates in wider Consumer Defensive sector, reached to the highest price of $34.69 whereas the lowest price it dropped to was $34.24. The 52-week range on KHC shows that it touched its highest point at $44.87 and its lowest point at $32.78 during that stretch. It currently has a 1-year price target of $41.98. With its current market cap of 41.86 billion, KHC has annualized dividend of $1.60 while the current yield stands at 4.67%. Beta for the stock currently stands at 0.72.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of KHC was down-trending over the past week, with a drop of -1.01%, but this was down by -11.52% over a month. Three-month performance dropped to -9.48% while six-month performance fell -10.50%. The stock lost -5.18% in the past year, while it has lost -4.57% so far this year. A look at the trailing 12-month EPS for KHC yields 1.03 with Next year EPS estimates of 2.75. For the next quarter, that number is 0.58. This implies an EPS growth rate of 180.70% for this year and 2.91% for next year. EPS is expected to decline by -1.84% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -25.80%.
Float and Shares Shorts:
At present, 1.23 billion KHC shares are outstanding with a float of 781.96 million shares on hand for trading. On Jul 14, 2022, short shares totaled 14.71 million, which was 1.20% higher than short shares on Jun 14, 2022. In addition to Mr. Miguel Patricio as the firm’s Chair & CEO, Ms. Rashida K. La Lande serves as its EVP, Global Gen. Counsel, Chief Sustainability & Corp. Affairs Officer and Sec.
Through their ownership of 73.01% of KHC’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 43.26% of KHC, in contrast to 24.97% held by mutual funds. Shares owned by individuals account for 10.00%. As the largest shareholder in KHC with 26.57% of the stake, Berkshire Hathaway, Inc. holds 325,634,818 shares worth 325,634,818. A second-largest stockholder of KHC, The Vanguard Group, Inc., holds 55,594,676 shares, controlling over 4.54% of the firm’s shares. SSgA Funds Management, Inc. is the third largest shareholder in KHC, holding 33,946,537 shares or 2.77% stake. With a 2.15% stake in KHC, the American Funds Income Fund of Ame is the largest stakeholder. A total of 26,339,505 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 1.63% of KHC stock, is the second-largest Mutual Fund holder. It holds 19,955,081 shares valued at 746.32 million. Invesco QQQ Trust holds 1.44% of the stake in KHC, owning 17,627,192 shares worth 659.26 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for KHC since 21 analysts follow the stock currently. There are 6 analysts who recommend BUY ratings, while 2 suggest SELL ratings. Of the remaining analysts, 12 believe that the stock is worth HOLDING, 1 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With KHC analysts setting a high price target of $48.00 and a low target of $34.00, the average target price over the next 12 months is $42.11. Based on these targets, KHC could surge 40.11% to reach the target high and fall by -0.76% to reach the target low. Reaching the average price target will result in a growth of 22.91% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. KHC will report FY 2022 earnings on 02/15/2023. Analysts have provided yearly estimates in a range of $2.76 being high and $2.60 being low. For KHC, this leads to a yearly average estimate of $2.67. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. The Kraft Heinz Company surprised analysts by $0.02 when it reported $0.70 EPS against a consensus estimate of $0.68. The surprise factor in the prior quarter was $0.07. Based on analyst estimates, the high estimate for the next quarter is $0.64 and the low estimate is $0.53. The average estimate for the next quarter is thus $0.58.
Dividends & Yield:
In terms of dividends, KHC has a current ratio of $1.60, which is $1.60 over the trailing 12-months, while a dividend of $1.92 is likely to be paid on average over the next five years. Dividend yield is another indicator that appeals to many investors, and KHC currently yields $4.67. In the past year, KHC’s dividend yield has been $4.67, but when looking at the stock over the past five years, its yield has been $4.81.
Summary of Insider Activity:
Insiders traded KHC stock several times over the past three months with 18 Buys and 19 Sells. In these transactions, 163,933 shares were bought while 375,566 shares were sold. The number of buy transactions has increased to 68 while that of sell transactions has risen to 41 over the past year. The total number of shares bought during that period was 807,184 while 119,648,190 shares were sold.