Kraft Heinz (KHC, $48.18) drops -20% pre-market, following $15 billion write-down, SEC investigation news and -36% dividend cut
Kraft Heinz stock plunged -20% in pre-market trading Friday, a day after the company announced a write-down and revealed an ongoing Securities and Exchange Commission (SEC) investigation into its accounting policies.
The processed food giant’s Kraft and Oscar Mayer brands took a $15 billion write-down in value. Kraft Heinz also slashed its dividend by -36% to 40 cents per share, citing the need to manage its deleveraging process. According to the firm, the dividend cut would help boost returns over time.
What probably aggravated investor concerns was the disclosure by Kraft Heinz that it had received a subpoena from the SEC in October, regarding the company’s procurement accounting methods. Following the subpoena, the company began an internal investigation, as a result of which it added $25 million to the cost of products sold. The company, however, has also indicated that at present, the matter related to the subpoena should not significantly affect the firm’s earnings reported for the current or previous periods.
Kraft Heinz posted earnings of 84 cents a share on $6.89 billion in revenue for the fourth quarter 2018, thereby missing analysts’ expectations of earnings per share of 94 cents on revenue of $6.93 billion (based on Refinitiv survey).
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Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
KHC in +3.67% Uptrend, advancing for three consecutive days on August 28, 2026
Moving higher for three straight days is viewed as a bullish sign. Keep an eye on this stock for future growth. Considering data from situations where KHC advanced for three days, in of 321 cases, the price rose further within the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on August 28, 2026. You may want to consider a long position or call options on KHC as a result. In of 75 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for KHC just turned positive on August 31, 2026. Looking at past instances where KHC's MACD turned positive, the stock continued to rise in of 50 cases over the following month. The odds of a continued upward trend are .
KHC moved above its 50-day moving average on August 27, 2026 date and that indicates a change from a downward trend to an upward trend.
The Aroon Indicator entered an Uptrend today. In of 172 cases where KHC Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The 10-day RSI Indicator for KHC moved out of overbought territory on July 30, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 29 similar instances where the indicator moved out of overbought territory. In of the 29 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator has been in the overbought zone for 1 day. Expect a price pull-back in the near future.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where KHC declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
KHC broke above its upper Bollinger Band on July 28, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.852) is normal, around the industry mean (6.028). P/E Ratio (13.041) is within average values for comparable stocks, (36.035). Projected Growth (PEG Ratio) (0.993) is also within normal values, averaging (2.790). Dividend Yield (0.062) settles around the average of (0.055) among similar stocks. P/S Ratio (1.231) is also within normal values, averaging (5.151).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. KHC’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. KHC’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 91, placing this stock worse than average.
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General Information
a manufacturer of packaged food products
Industry FoodMajorDiversified
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