Institutional investors may adopt severe steps after The Kraft Heinz Company's (NASDAQ:KHC) latest 5.6% drop adds to a year losses

Simply Wall St.11-16 19:00

Key Insights Given the large stake in the stock by institutions, Kraft Heinz's stock price might be vulnerable to their trading decisions 51% of the business is held by the top 9 shareholders ...

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A look at the shareholders of The Kraft Heinz Company  can tell us which group is most powerful. With 55% stake, institutions possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises .And institutional investors endured the highest losses after the company's share price fell by 5.6% last week. Needless to say, the recent loss which further adds to the one-year loss to shareholders of 3.1% might not go down well especially with this category of shareholders. Often called “market movers\", institutions wield significant power in influencing the price dynamics of any stock. As a result, if the downtrend continues, institutions may face pressures to sell Kraft Heinz, which might have negative implications on individual investors.Let's take a closer look to see wh","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{".IXIC":"NASDAQ Composite","NDAQ":"纳斯达克OMX交易所","KHC":"卡夫亨氏"},"translate_title":"在这家卡夫亨氏公司（纳斯达克股票代码：KHC）最新下跌5.6%加剧一年亏损后，机构投资者可能会采取严厉措施","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{".IXIC":1,"KHC":1,"NDAQ":1},"content_text":"Key Insights\n\n Given the large stake in the stock by institutions, Kraft Heinz's stock price might be vulnerable to their trading decisions \n 51% of the business is held by the top 9 shareholders \n  Insiders have sold recently  \n\n A look at the shareholders of The Kraft Heinz Company (NASDAQ:KHC) can tell us which group is most powerful. With 55% stake, institutions possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn). \n And institutional investors endured the highest losses after the company's share price fell by 5.6% last week. Needless to say, the recent loss which further adds to the one-year loss to shareholders of 3.1% might not go down well especially with this category of shareholders. Often called “market movers\", institutions wield significant power in influencing the price dynamics of any stock. As a result, if the downtrend continues, institutions may face pressures to sell Kraft Heinz, which might have negative implications on individual investors. \n Let's take a closer look to see what the different types of shareholders can tell us about Kraft Heinz. \n Check out our latest analysis for Kraft Heinz \n\n\n\n  NasdaqGS:KHC Ownership Breakdown November 16th 2024\n \n\nWhat Does The Institutional Ownership Tell Us About Kraft Heinz?\n Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index. \n We can see that Kraft Heinz does have institutional investors; and they hold a good portion of the company's stock. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Kraft Heinz's historic earnings and revenue below, but keep in mind there's always more to the story. \n\n\n\n  NasdaqGS:KHC Earnings and Revenue Growth November 16th 2024\n \n\n Since institutional investors own more than half the issued stock, the board will likely have to pay attention to their preferences. Hedge funds don't have many shares in Kraft Heinz. Our data shows that Berkshire Hathaway Inc. is the largest shareholder with 27% of shares outstanding. For context, the second largest shareholder holds about 7.6% of the shares outstanding, followed by an ownership of 5.9% by the third-largest shareholder. \n On further inspection, we found that more than half the company's shares are owned by the top 9 shareholders, suggesting that the interests of the larger shareholders are balanced out to an extent by the smaller ones. \n While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock's expected performance. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too. \nInsider Ownership Of Kraft Heinz\n The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves. \n I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions. \n Our data suggests that insiders own under 1% of The Kraft Heinz Company in their own names. Being so large, we would not expect insiders to own a large proportion of the stock. Collectively, they own US$110m of stock. It is always good to see at least some insider ownership, but it might be worth checking if those insiders have been selling.  \nGeneral Public Ownership\n The general public, who are usually individual investors, hold a 18% stake in Kraft Heinz. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run. \nPublic Company Ownership\n Public companies currently own 27% of Kraft Heinz stock. We can't be certain but it is quite possible this is a strategic stake. The businesses may be similar, or work together. \nNext Steps:\n While it is well worth considering the different groups that own a company, there are other factors that are even more important. Take risks for example - Kraft Heinz has   4 warning signs   we think you should be aware of. \n If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future. \nNB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.\nHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"-1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.1","shortVersion":"4.29.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2483459795"}