Berkshire Hathaway May Sell Kraft Heinz Shares After Buffett's Retirement
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1d ago
0mins
Source: NASDAQ.COM
- New CEO Decisions: Following Buffett's retirement, Berkshire's new CEO Greg Abel may reduce its stake in Kraft Heinz, currently holding 27.5% of shares worth $7.7 billion, which could impact market confidence in Kraft Heinz.
- Selling Trend Emerges: Abel is likely to continue reducing exposure to Apple and Bank of America, with Buffett having sold 74% of Apple and 45% of Bank of America between September 2023 and September 2025, reflecting concerns over high valuations.
- Market Reaction Anticipated: Kraft Heinz's filing of a prospectus supplement suggests Berkshire may sell up to 325 million shares, although no definitive sale plan exists, the market widely expects significant selling activity.
- Valuation Pressure: With Apple's P/E ratio exceeding 33, Abel may consider selling due to stagnant sales growth, while Bank of America's stock is nearing a 50% premium to book value, potentially affecting future net interest income.
Analyst Views on KHC
Wall Street analysts forecast KHC stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for KHC is 25.86 USD with a low forecast of 24.00 USD and a high forecast of 28.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
15 Analyst Rating
0 Buy
14 Hold
1 Sell
Hold
Current: 22.720
Low
24.00
Averages
25.86
High
28.00
Current: 22.720
Low
24.00
Averages
25.86
High
28.00
About KHC
The Kraft Heinz Company manufactures and markets food and beverage products around the world through its eight consumer-driven product platforms: Taste Elevation, Easy Ready Meals, Substantial Snacking, Desserts, Hydration, Cheese, Coffee, and Meats. The Company has two reportable segments defined by geographic region: North America and International Developed Markets. Its other segments, consisting of West and East Emerging Markets (WEEM) and Asia Emerging Markets (AEM), are combined and disclosed as Emerging Markets. It manufactures its products from a wide variety of raw materials. Its brands include Kraft, Oscar Mayer, Heinz, Philadelphia, Lunchables, Velveeta, Ore-Ida, Capri Sun, Maxwell Apartment, Kool-Aid, Jell-O, Heinz, Golden Circle, Wattie’s, Plasmon, Heinz, ABC, Master, Quero, Kraft, and Pudliszki, among others. The Company’s products are sold through its own sales organizations and through independent brokers, agents, and distributors.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
