Kroger (NYSE:KR) Issues Quarterly Earnings Results, Beats Expectations By $0.05 EPS

Kroger (NYSE:KR) released its earnings results on Thursday. The company reported $1.14 EPS for the quarter, topping the consensus estimate of $1.09 by $0.05, Zacks reports. Kroger had a return on equity of 27.73% and a net margin of 1.85%. Kroger updated its FY 2025 guidance to 4.600-4.800 EPS.

Kroger Stock Performance

Shares of NYSE KR traded up $1.79 during mid-day trading on Thursday, hitting $64.32. The company had a trading volume of 4,540,104 shares, compared to its average volume of 5,555,934. The company has a market capitalization of $46.54 billion, a price-to-earnings ratio of 17.08, a P/E/G ratio of 2.85 and a beta of 0.51. Kroger has a 1 year low of $49.04 and a 1 year high of $66.26. The company has a current ratio of 1.54, a quick ratio of 1.07 and a debt-to-equity ratio of 1.74. The stock’s 50-day moving average price is $62.16 and its 200-day moving average price is $58.82.

Kroger Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Saturday, March 1st. Stockholders of record on Friday, February 14th were given a $0.32 dividend. This represents a $1.28 annualized dividend and a dividend yield of 1.99%. The ex-dividend date was Friday, February 14th. Kroger’s dividend payout ratio (DPR) is presently 33.86%.

Analysts Set New Price Targets

A number of equities research analysts have commented on KR shares. JPMorgan Chase & Co. raised their price objective on Kroger from $69.00 to $71.00 and gave the company an “overweight” rating in a research note on Monday, January 6th. Roth Mkm lifted their price target on Kroger from $52.00 to $56.00 and gave the stock a “neutral” rating in a report on Friday, December 6th. The Goldman Sachs Group reiterated a “buy” rating and set a $70.00 price target on shares of Kroger in a report on Tuesday, February 4th. Guggenheim lifted their price target on Kroger from $68.00 to $71.00 and gave the stock a “buy” rating in a report on Friday, February 7th. Finally, Evercore ISI boosted their target price on Kroger from $70.00 to $75.00 and gave the company an “outperform” rating in a research note on Thursday, February 6th. Seven analysts have rated the stock with a hold rating, ten have assigned a buy rating and one has assigned a strong buy rating to the company. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $67.19.

Insider Activity

In related news, CFO Todd A. Foley sold 16,932 shares of the business’s stock in a transaction dated Thursday, December 19th. The stock was sold at an average price of $61.44, for a total transaction of $1,040,302.08. Following the completion of the transaction, the chief financial officer now directly owns 53,782 shares in the company, valued at $3,304,366.08. The trade was a 23.94 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, SVP Timothy A. Massa sold 25,889 shares of the business’s stock in a transaction dated Friday, December 6th. The stock was sold at an average price of $60.12, for a total value of $1,556,446.68. Following the transaction, the senior vice president now owns 115,861 shares of the company’s stock, valued at approximately $6,965,563.32. The trade was a 18.26 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders sold 195,448 shares of company stock worth $12,143,923. 1.40% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Kroger

An institutional investor recently raised its position in Kroger stock. Brighton Jones LLC lifted its position in The Kroger Co. (NYSE:KR) by 27.3% in the fourth quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 15,733 shares of the company’s stock after purchasing an additional 3,373 shares during the quarter. Brighton Jones LLC’s holdings in Kroger were worth $962,000 at the end of the most recent quarter. 80.93% of the stock is currently owned by institutional investors and hedge funds.

Kroger declared that its Board of Directors has authorized a stock buyback plan on Wednesday, December 11th that authorizes the company to repurchase $7.50 billion in shares. This repurchase authorization authorizes the company to repurchase up to 16.9% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company’s board believes its shares are undervalued.

Kroger Company Profile

The Kroger Co operates as a food and drug retailer in the United States. The company operates combination food and drug stores, multi-department stores, marketplace stores, and price impact warehouses. Its combination food and drug stores offer natural food and organic sections, pharmacies, general merchandise, pet centers, fresh seafood, and organic produce; and multi-department stores provide apparel, home fashion and furnishings, outdoor living, electronics, automotive products, and toys.