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).
KHC's MACD Histogram crosses above signal line
The Moving Average Convergence Divergence (MACD) for KHC turned positive on June 24, 2025. Looking at past instances where KHC's MACD turned positive, the stock continued to rise in of 42 cases over 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 July 01, 2025. You may want to consider a long position or call options on KHC as a result. In of 71 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
KHC moved above its 50-day moving average on July 11, 2025 date and that indicates a change from a downward trend to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where KHC advanced for three days, in of 318 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The RSI Oscillator demonstrated that the stock has entered the overbought zone. This may point to a price pull-back soon.
The Stochastic Oscillator entered the overbought zone. Expect a price pull-back in the foreseeable 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 14, 2025. 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.
The Aroon Indicator for KHC entered a downward trend on July 01, 2025. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
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 (0.910) is normal, around the industry mean (6.363). P/E Ratio (16.043) is within average values for comparable stocks, (27.114). Projected Growth (PEG Ratio) (1.048) is also within normal values, averaging (2.471). Dividend Yield (0.043) settles around the average of (0.043) among similar stocks. P/S Ratio (1.718) is also within normal values, averaging (35.583).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. KHC’s price grows at a lower 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 average 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 80, placing this stock worse than average.
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General Information
a manufacturer of packaged food products
Industry FoodSpecialtyCandy
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