AAL

Valuation Warning Sends KHC Sliding

The equity is up around 40% in the last 12 months

Digital Content Manager
Feb 19, 2021 at 9:59 AM
facebook X logo linkedin


The shares of Kraft Heinz Co (NASDAQ:KHC) are down 2.1% at $38.15 this morning, after J.P. Morgan Securities downgraded the packaged foods producer to "neutral" from "overweight." The analyst said it has no valuation rationale to recommend the stock, and while it sees some additional upside for KHC, it's not enough for the previous "overweight" rating. 

This blow has KHC tumbling from a two year high of $39.22, touched during yesterday's session. The equity has been chopping higher since last March's plummet, and just recently pushed past pressure at the $36 region, with help from the 200-day moving average. Year-over-year, KHC is up roughly 40%. 

Coming into today, analysts were split on the equity, with six carrying "strong buy" rating, and four saying "hold." Meanwhile, the 12-month consensus price target of $37.44 is a 2% discount to last night's close. 

Option traders, meanwhile, have been incredibly bullish. At the Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), 9.23 calls have been picked up for every put over the last 10 weeks. This ratio stands higher than 93% of readings from the past year, suggesting a healthier-than-usual appetite for long calls of late. 

 

Same-Day Trading Power: +227% YTD and Counting  — Get in for $10!

We're celebrating 44 years of helping traders win, and you can now tap into one of our most explosive services — Dynamite Day Trading Signals — for just $10.

This service was built for one thing: capturing intraday gains with precision. 

Access two highly-vetted options trades each week -  Complete with defined entries, exits, and a clear plan for same-day profits.

👉 Click Here to Learn More and Position Yourself to Take Action When the Next Alert Hits.