KHC Stock Inches Higher Amid Production Plant Shakeup

The stock has added almost 30% since its mid-March bottom

Deputy Editor
Apr 6, 2020 at 10:53 AM
facebook X logo linkedin

Kraft Heinz Co (NASDAQ:KHC) announced that it has significantly decreased restaurant supply production at three plants, two in the U.S. and one in the U.K., in response to dwindling consumer demand, specifically in Europe. Meanwhile, Kraft said its packaged food units are working in three shifts in order to meet increasing demand for macaroni and cheese, canned beans and soups. At last check, KHC stock is up 2.3% trading at $25.95

Today's pop has KHC squaring back up with its 50-day moving average -- a trendline that has acted as pressure on the charts since mid-January. And while the security is still wallowing below it's year-to-date breakeven, off roughly 20%, it has managed a 29.8% bounce off its March 16 record low of $19.99. 

Analysts are still cautious on KHC. Of the 11 in coverage, 10 sport a “hold” position. This is mirrored by the stock’s current consensus 12-month price target of $26.76 which is a conservative 2.1% premium of the stock’s current levels.

The options pits are telling a different story, however. KHC sports a 10-day call/put volume ratio of 3.28 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which sits in the elevated 79th percentile of its annual range. This implies a heather appetite than usual for long calls of late. 



How to collect 1 dividend check every day for LIFE

Did you know you could collect 1 dividend check every day the market is open? You could also do it starting with just $605! For me, I'm collecting 70 dividend checks every quarter…which averages around 1.1 dividend checks every business day. There's no trading behind this... no penny stocks or high-risk investments. All you do is buy and hold and you're set. There's no set up required either. If you start buying the dividend stocks I show you today... you could collect 1 dividend per day starting as early as this week. Click here for all the details.