Kraft Heinz Company results impacted by reduced USA demand

Marcus Newton
February 17, 2018

Bank of America set a $100.00 price objective on Kraft Heinz (NASDAQ:KHC) in a report released on Thursday morning.

The Kraft Heinz Company KHC is one of the largest consumer packaged food and beverage companies in North America. Technical analysts have little regard for the value of a company.

Kraft Heinz was trading at $68 a share on Friday, lows not seen since August 2015. Jefferies Group initiated coverage on Kraft Heinz in a research note on Friday, January 19th.

According to the Recommendation Trends of the stock polled by Zacks Investment Research for this month, the company has a consensus recommendation of 1.61 out of the scale from 1 to 5 where 1 stands for Strong Buy and 5 means Strong Sell. Kraft Heinz presently has an average rating of "Buy" and a consensus target price of $91.89.

At the moment 20 analysts are watching The Kraft Heinz Company (NASDAQ:KHC), 9 rate it "Buy", 6 "Outperform", 5 "Underperform", 0 "Sell", while 0 "Hold". 7,409,900 shares of the company's stock were exchanged, compared to its average volume of 4,486,300.

By continuing deep analysis, The Kraft Heinz Company (NASDAQ:KHC) making a luring appeal for passive investors, the firm attains price to earnings ratio of 22.42 and its current ratio stands at 0.80.

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Organic sales were down 1.1 per cent in the U.S., the company's largest market, where prices increased, but the company saw lower shipments across several categories including nuts, natural cheese and cold cuts in the USA, which was partially offset by growth in macaroni cheese. The Average True Range (ATR) is also a measure of volatility is now sitting at 1.59. This showed a surprise of 1.2% in the last quarter earnings.

KH saw net sales inch forward 0.3% year-on-year to $6.88bn, just short of analysts' estimates, but taking away a 0.9% benefit as a result of currency moves, organic sales actually fell 0.6% compared to the previous fourth quarter. Revenue came in at $6.88 billion last quarter, while analysts had estimated $6.91 billion on average. Excluding items, the company earned 90 cents per share, missing estimates of 95 cents. Perhaps, that suggests something about why 0.16% of the outstanding share supply is held by institutional investors. This represents a $2.50 dividend on an annualized basis and a yield of 3.44%. "Kraft Heinz is one of the big dogs, therefore it gets a lot of the proportional short interest". V Wealth Management LLC acquired a new position in The Kraft Heinz in the 2nd quarter worth $125,000.

Net income rose to $8 billion, or $6.52 per share, in the fourth quarter ended December 30, from $944 million, or 77 cents per share, a year earlier. Alliancebernstein L.P. raised its holdings in shares of Kraft Heinz by 49.4% in the 2nd quarter.

The company's shares were down 3.3 percent in afternoon trading. Blue Chip Partners Inc. boosted its stake in The Kraft Heinz by 0.5% in the 2nd quarter. This discount could be the result of weak market conditions or overreaction to recent company setbacks. Gratus Capital LLC increased its position in Kraft Heinz by 10.0% in the 2nd quarter. It is a positive indicator for investor portfolio value - when the price of a stock Investor owns goes up in value. RBC Capital Markets maintained The Kraft Heinz Company (NASDAQ:KHC) on Thursday, December 21 with "Buy" rating. If you are reading this article on another website, it was stolen and reposted in violation of US and worldwide copyright & trademark legislation.

Kraft Heinz, owner of brands such as Velveeta cheese and Heinz ketchup, said on Friday that retailers in Canada were stocking fewer of their products - a factor that is likely to be permanent. It manufactures and markets food and beverage products like condiments and sauces, cheese as well as dairy, meals, meats, refreshment beverages, coffee, and other grocery products.

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