Because of growth fears, Kraft-Heinz (NASDAQ: KHC) shares moved to the low end of a long-term, multi-year trading range in early 2025. The growth fears center on consumer shifts, with higher-priced brands like Kraft in danger of losing market share. However, despite the risks, the stock price is unlikely to fall to new lows because the institutions have signaled a bottom. The institutional buying was ramping higher in the 2nd half of 2024 as they bought into the sell-off but reached a crescendo in Q1 2025 that has the market in a full-blown rebound.
Institutional selling also ramped higher in Q1 but was offset by buying volume, which netted shares equal to 1% of the market cap in late February. This is a significant tailwind for the market because the institutions own about 80% of the stock, including a sizeable holding by Berkshire Hathaway. Berkshire Hathaway isn’t included in the 2024/2025 buyers but is a significant holder at 27% of the shares, and it isn’t selling. The high yield and outlook for an eventual price-multiple expansion are among the reasons for the institutional interest.
