Last seen up a sharp 23.7% year to date, shares of the Kraft Heinz Co. (NASDAQ: KHC) also are up over 26% from a year ago. The food giant may not be as large of stake ahead if Buffett’s target of it coming down, part of his deal with 3G International, lives up to expectations. It was a 325.6 million share stake that was worth over $25 billion at the end of April.
Kraft Heinz was last seen trading at $89.74, and its consensus price target is $90.29. The market cap is $109 billion, and the stock has traded in a 52-week range of $61.42 to $89.76.
Wal-Mart Stores Inc. (NYSE: WMT) may have seen its shares return 21% so far in 2016, but the stock is up only about 4% from this time a year ago. This gain has two issues that may skew how the investing public views it now. One is that Wal-Mart is again being deemed defensive, but a second issue is that this performance is after Wal-Mart’s stock tanked in 2015 on earnings warnings. Higher labor costs and ongoing retail woes from the brick-and-mortar outfits continue.
Wal-Mart shares last closed at $73.82, above the consensus price target of $69.19. The market cap is $230 billion, and the stock price has a 52-week range of $56.30 to $74.14. Buffett’s position was a tad smaller than in prior quarters, but that was still 55 million shares, worth $4 billion or more at this time if the stake was held static.
This one is a stock that everyone seems to hate. Still, International Business Machines Corp. (NYSE: IBM) has bounced handily off its lows, and Buffett likely feels less worried that he has over $10 billion tied up in such a poor-performing tech stock. IBM is magically up better than 12% year to date, but its stock performance is still in the red at −4.4% if compared to a year ago. Buffett likely is still underwater here, but he probably won’t sell any shares, and in fact he may buy more.
IBM was again a larger stake as Buffett himself keeps averaging his cost basis lower, with the latest stake of 81.232 million shares worth over $12 billion at the end of the first quarter. The adjusted stake now would be worth some $12.3 billion, if it was kept static.
IBM shares are back to $152.37 as of the most recent close, also above the $144.18 consensus analyst target. IBM’s market cap is $146 billion. The shares have traded hands between $116.90 and $173.78 in the past year.