Kraft Heinz Company (KHC)

[FUNMAN]

KHC - a third very interesting twist to today's buying and selling

https://seekingalpha.com/news/3499815-baml-digs-kraft-action?app=1#email_link ;


BAML digs into Kraft action

Sep. 17, 2019 9:49 AM ET

About: The Kraft Heinz Company (KHC)
By: Clark Schultz, SA News Editor 

Bank of America Merrill Lynch tries to make sense out of 3G selling shares and insiders buying at Kraft Heinz (KHC -3.8%).

BAML: "We note that investors in 3G Capital Global Food fund have been invested for approximately seven years and have limited windows of time to sell down their stakes in the fund. In 2018 the fund sold ~20m shares for its investors. Concurrent with this stock sale certain partners of 3G capital have acquired 6.993 million of the 25.068 million shares being sold in the offering. Of the 6.993 million shares being acquired by 3G partners’ director Jorge Paolo Lemann is acquiring 3.496m or ~$100m worth of shares. While the equity markets remain tepid on prospects for a KHC recovery, some 3G partners are adding to their positions."

The firm is playing it down the middle on Kraft, with a Neutral rating and price objective of $32 vs. the sell-side consensus of $30.00. The Quant rating on Kraft is also at Neutral.