Food Company Kraft Heinz Steps Up With A Major Share Buyback: Details
Portfolio Pulse from Shivani Kumaresan
Kraft Heinz Co (NASDAQ:KHC) has announced a new share repurchase program authorized by its Board of Directors, allowing for the buyback of up to $3 billion in shares until December 26, 2026. The company plans to use excess cash for the buybacks after accounting for capital expenditures. CEO Miguel Patricio expressed confidence in the company's strategy and considered its shares to be an attractive investment. The repurchase program is flexible, with no obligation to buy a specific number of shares and can be adjusted or halted at any time. As of September 30, 2023, Kraft Heinz had $1.05 billion in cash and equivalents. Following the news, KHC shares saw a modest increase of 0.49% to $35.11.
November 27, 2023 | 4:01 pm
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Kraft Heinz Co announces a $3 billion share repurchase program, reflecting management's confidence in the company's financial health and stock value.
Share buyback programs often signal to the market that a company believes its stock is undervalued and that it has strong financial health. This can lead to increased investor confidence and potentially drive up the stock price in the short term. The modest increase in share price following the announcement suggests a positive but restrained market reaction.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100