Investors await the end of an epic year marked by a slew of macroeconomic headwinds. The coming year could see a looming recession and increased uncertainty in the financial markets. In such cases, a little assistance from seasoned investors can go a long way.
Remarkably, TipRanks’ Hedge Fund Trading Activity tool provides a very informative insight into the latest investments made by ace hedge fund managers. The tool collects data from the filings of around 468 hedge funds to offer hedge fund signals.
Today, we will look at why hedge funds are optimistic about the consumer staple stock, The Kraft Heinz Company (NASDAQ:KHC) despite the inflationary environment.
Hedge Funds are Hoarding KHC Stock
As per TipRanks’ Hedge Fund tool, about 18 hedge funds bought 2.2 million shares of Kraft Heinz in the past three months. Among these are the Bill & Melinda Gates Foundation Trust’s Bill Gates, Echo Street Capital Management LLC’s Greg Poole, and of course KHC’s longtime believer, billionaire Warren Buffett’s Berkshire Hathaway (NYSE:BRK.A) (NYSE:BRK.B)
Kraft Heinz is one of the largest consumer packaged goods companies, offering condiments and sauces, dairy, meats, meals, refreshment beverages, coffee, and other grocery products. Year to date, KHC stock has gained 14.9% thanks to the continued demand momentum for its products while competitors are witnessing dimming demand conditions. No wonder, hedge fund managers remain so bullish about KHC’s future prospects.
This year, the company has consistently outperformed earnings expectations by making strategic decisions and passing on a large portion of price increases to consumers. What’s more, KHC also boasts an impressive 4% dividend yield through its regular quarterly dividend payment of $0.40 per share.
What is the Forecast for Kraft Heinz Stock?
Analysts are still concerned about the future of consumer staple stocks in the face of macroeconomic uncertainty. . On TipRanks, KHC stock has a Moderate Buy consensus rating based on five Buys versus six Hold ratings. Also, the average Kraft Heinz price forecast of $42 implies 5.5% upside potential to current levels.
Find out which stock the biggest hedge fund managers are buying right now.
