Bear Note Sends Kraft Heinz Stock Toward Worst Close Ever

Calvin Klein parent PVH is seeing a post-earnings plunge

by Emma Duncan

Published on May 30, 2019 at 3:31 PM

Trade uncertainty has stocks hovering around breakeven, leaving markets relatively quiet at midday. Three stocks that are making noise today are measurement name Keysight Technologies Inc (NYSE:KEYS), Tommy Hilfiger parent PVH Corp (NYSE:PVH), and ketchup manufacturer Kraft Heinz Co (NASDAQ:KHC). Below, we will dive into what is moving the shares of KEYS, PVH, and KHC.

KEYS Stock Gaps Higher on Earnings

Keysight stock is gapping 10.4% higher at $79.10, after the company reported a second-quarter earnings beat and a $500 million share repurchase program, citing strong demand for 5G networks. KEYS is testing its post-downgrade bear gap, and is now one of the top gainers on the S&P 500 Index (SPX). 

Regardless, Deutsche Bank cut its price target to $110 from $120 on the stock early this morning. However, probably four out of the five covering firms sport "strong buy" recommendation on the shares, which are up almost 28% year-over-year.

PVH Stock Sinks on Quarterly Miss

After sharing a disappointing first-quarter sales miss and lowering its full-year outlook on poor overseas traffic, Calvin Klein parent PVH is down 14.5% at $84.83 this afternoon. The retailer also said it expects a year-over-year revenue to be flat for the second quarter. The security has struggled on the charts long-term, already losing 45% over the past 12 months.

Analysts were quick to react, with no fewer than five slashing their price target on the stock. Most noteworthy was a cut to $98 from $120 out of Cowen and Co. Today's slew of bear notes are rare for PVH, with all but three of the 14 following firms sporting "buy" or "strong buy" ratings. Plus, the average 12-month price target still comes in at a 55% premium to current levels.

Kraft Heinz Plunges Into Record-Low Territory

Ketchup-maker Kraft Heinz stock is eyeing its lowest close ever, last seen down 3.2%, and fresh off a record low of $27.25. KHC is tanking after Credit Suisse handed out a street-low price-target cut to $26 from $33, just months after revealing the Securities Exchange Commission (SEC) sent a subpoena to the pickle company back in October. Suisse specifically stated that they have "no visibility into whether the SEC is satisfied." KHC has shed 53% over the past 12 months.

Unsurprisingly analysts have been extremely bearish toward the stock. All 17 firms sport a "hold" or "strong sell" recommendation, contrary to the security's average 12-month price target, which currently stands at a healthy $35.24.


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