The Kraft Heinz Co (KHC) short interest is 919 million; 19.07 million shares shorted; 3.06% of float; stock borrow cost is 30 bps fee (general collateral).
KHC reported multiple issues today which are negatively affecting its stock price and forcing the firm to cut its dividend from $0.625 to $0.40. KHC reported that it had receive a subpoena revolving around its accounting and procurement practices; it is writing down $15.4 billion of goodwill on most of its brands due to changes in consumer tastes and disappointing 4th quarter earnings that missed virtually every analyst estimate.
KHC shares are down 27% in early morning trading and we are seeing active short selling along with the expected long shareholder selling on todayâ€™s news.
KHC short selling had been trending downwards in November and December of last year, but had increased by 1.2 million shares, +6.6%, in 2019 prior to todayâ€™s activity.
Over the past week, ahead of earnings, shorts had trimmed their positions by 989k shares and missed out on todayâ€™s stock price nosedive. Shorts were up $734 million in mark-to-market profits in 2018 as KHCâ€™s stock price declined by Â -45%, but were down $96 million in 2019 as its stock price was up 12% on positive expectations.
Shorts are up $251 million in mark-to-market profits today as the stock opened down over $13/share.
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