Kraft Heinz (KHC) Downgraded by Zacks Investment Research
Kraft Heinz (NASDAQ:KHC) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report issued on Wednesday.
According to Zacks, “Kraft Heinz posted lower-than-expected results in the fourth quarter of 2017 where earnings of 90 cents per share missed the Zacks Consensus Estimate by 6.3% while net sales missed the same by 0.3%. Net sales increased by a meager 0.3% year over year, but earnings declined 1.1% from the year-ago level. Sales growth continued to face challenges in the quarter due to softness in the U.S. retail environment. Organic sales in the United States declined 1.1% year over year due to lower volume. Soft consumer demand in North America and Canada along with a 4% year-over-year decline in gross profit affected the company’s fourth-quarter earnings. Kraft Heinz has been struggling due to the shift in consumer preferences toward natural and organic ingredients over packaged and processed food. Kraft Heinz’s shares have underperformed the industry in the past year and earnings estimates are trending downward for 2018 over the last 30 days.”
KHC has been the topic of several other reports. UBS Group set a $80.00 price objective on shares of Kraft Heinz and gave the company a “buy” rating in a report on Tuesday, February 20th. Jefferies Group reiterated a “buy” rating and issued a $95.00 price objective on shares of Kraft Heinz in a report on Friday, February 16th. Credit Suisse Group upgraded shares of Kraft Heinz to a “buy” rating and set a $77.00 price objective on the stock in a report on Monday, February 26th. BidaskClub downgraded shares of Kraft Heinz from a “sell” rating to a “strong sell” rating in a report on Saturday, December 30th. Finally, Bank of America set a $100.00 price objective on shares of Kraft Heinz and gave the company a “buy” rating in a report on Thursday, February 15th. Two research analysts have rated the stock with a sell rating, four have issued a hold rating, fourteen have assigned a buy rating and one has given a strong buy rating to the company’s stock. The stock has a consensus rating of “Buy” and a consensus price target of $85.78.
Kraft Heinz (NASDAQ:KHC) last posted its quarterly earnings results on Friday, February 16th. The company reported $0.90 earnings per share (EPS) for the quarter, missing the Thomson Reuters’ consensus estimate of $0.96 by ($0.06). Kraft Heinz had a return on equity of 7.20% and a net margin of 41.93%. The firm had revenue of $6.88 billion for the quarter, compared to the consensus estimate of $6.91 billion. During the same period last year, the company posted $0.08 earnings per share. The business’s revenue was up .3% compared to the same quarter last year. sell-side analysts expect that Kraft Heinz will post 3.85 EPS for the current fiscal year.
Several hedge funds have recently added to or reduced their stakes in the stock. BlackRock Inc. grew its stake in shares of Kraft Heinz by 4.6% in the fourth quarter. BlackRock Inc. now owns 35,073,958 shares of the company’s stock valued at $2,727,351,000 after acquiring an additional 1,551,823 shares in the last quarter. Magellan Asset Management Ltd grew its stake in shares of Kraft Heinz by 30.4% in the fourth quarter. Magellan Asset Management Ltd now owns 21,429,032 shares of the company’s stock valued at $1,666,322,000 after acquiring an additional 4,998,778 shares in the last quarter. Bank of New York Mellon Corp grew its stake in shares of Kraft Heinz by 3.8% in the fourth quarter. Bank of New York Mellon Corp now owns 7,946,677 shares of the company’s stock valued at $617,932,000 after acquiring an additional 290,717 shares in the last quarter. Geode Capital Management LLC grew its stake in shares of Kraft Heinz by 3.1% in the fourth quarter. Geode Capital Management LLC now owns 6,822,492 shares of the company’s stock valued at $529,480,000 after acquiring an additional 202,168 shares in the last quarter. Finally, American International Group Inc. grew its stake in shares of Kraft Heinz by 1,928.1% in the fourth quarter. American International Group Inc. now owns 6,110,926 shares of the company’s stock valued at $475,186,000 after acquiring an additional 5,809,615 shares in the last quarter. Institutional investors and hedge funds own 63.24% of the company’s stock.
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Kraft Heinz Company Profile
The Kraft Heinz Company is a food and beverage company. The Company is engaged in the manufacturing and marketing of food and beverage products, including condiments and sauces, cheese and dairy, meals, meats, refreshment beverages, coffee and other grocery products. The Company’s segments include the United States, Canada and Europe.
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