Fintel reports that on July 26, 2023, Goldman Sachs maintained coverage of Kraft Heinz (NASDAQ:KHC) with a Buy recommendation.

Analyst Price Forecast Suggests 22.09% Upside

As of July 6, 2023, the average one-year price target for Kraft Heinz is 44.62. The forecasts range from a low of 37.88 to a high of $52.50. The average price target represents an increase of 22.09% from its latest reported closing price of 36.55.

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The projected annual revenue for Kraft Heinz is 26,732MM, a decrease of 0.73%. The projected annual non-GAAP EPS is 2.79.

Kraft Heinz Declares $0.40 Dividend

On May 3, 2023 the company declared a regular quarterly dividend of $0.40 per share ($1.60 annualized). Shareholders of record as of June 6, 2023 received the payment on June 30, 2023. Previously, the company paid $0.40 per share.

At the current share price of $36.55 / share, the stock’s dividend yield is 4.38%.

Looking back five years and taking a sample every week, the average dividend yield has been 4.67%, the lowest has been 3.59%, and the highest has been 7.70%. The standard deviation of yields is 0.66 (n=235).

The current dividend yield is 0.45 standard deviations below the historical average.

Additionally, the company’s dividend payout ratio is 0.81. The payout ratio tells us how much of a company’s income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company’s income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend – not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

The company has not increased its dividend in the last three years.

What is the Fund Sentiment?

There are 1965 funds or institutions reporting positions in Kraft Heinz. This is a decrease of 1 owner(s) or 0.05% in the last quarter. Average portfolio weight of all funds dedicated to KHC is 0.31%, an increase of 9.17%. Total shares owned by institutions increased in the last three months by 1.89% to 997,013K shares. The put/call ratio of KHC is 0.68, indicating a bullish outlook.

What are Other Shareholders Doing?

Berkshire Hathaway holds 325,635K shares representing 26.53% ownership of the company. No change in the last quarter.

Bank Of America holds 31,889K shares representing 2.60% ownership of the company. In it’s prior filing, the firm reported owning 11,006K shares, representing an increase of 65.49%. The firm increased its portfolio allocation in KHC by 148.18% over the last quarter.

Invesco holds 26,223K shares representing 2.14% ownership of the company. In it’s prior filing, the firm reported owning 22,143K shares, representing an increase of 15.56%. The firm increased its portfolio allocation in KHC by 7.14% over the last quarter.

Capital International Investors holds 26,181K shares representing 2.13% ownership of the company. In it’s prior filing, the firm reported owning 25,352K shares, representing an increase of 3.17%. The firm decreased its portfolio allocation in KHC by 5.99% over the last quarter.

VTSMX – Vanguard Total Stock Market Index Fund Investor Shares holds 24,641K shares representing 2.01% ownership of the company. In it’s prior filing, the firm reported owning 24,202K shares, representing an increase of 1.78%. The firm decreased its portfolio allocation in KHC by 10.70% over the last quarter.

Kraft Heinz Background Information
(This description is provided by the company.)

The Kraft Heinz Company is driving transformation, inspired by its Purpose, Let’s Make Life Delicious. Consumers are at the center of everything the company does. With 2020 net sales of approximately $26 billion, Kraft Heinz is committed to growing its iconic and emerging food and beverage brands on a global scale. The company leverages its scale and agility to unleash the full power of Kraft Heinz across a portfolio of six consumer-driven product platforms. As global citizens, the company is dedicated to making a sustainable, ethical impact while helping feed the world in healthy, responsible ways.

This article originally appeared on Fintel

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