Kroger (NYSE:KR) Stock Price Up 4.8% After Better-Than-Expected Earnings

The Kroger Co. (NYSE:KR)’s stock price rose 4.8% on Thursday following a stronger than expected earnings report. The company traded as high as $65.87 and last traded at $65.56. Approximately 1,365,532 shares traded hands during mid-day trading, a decline of 75% from the average daily volume of 5,463,883 shares. The stock had previously closed at $62.53.

The company reported $1.14 earnings per share for the quarter, topping the consensus estimate of $1.09 by $0.05. Kroger had a return on equity of 27.73% and a net margin of 1.85%.

Kroger Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Saturday, March 1st. Stockholders of record on Friday, February 14th were given a $0.32 dividend. The ex-dividend date of this dividend was Friday, February 14th. This represents a $1.28 annualized dividend and a dividend yield of 2.00%. Kroger’s dividend payout ratio (DPR) is presently 33.86%.

Kroger announced that its Board of Directors has approved a stock buyback program on Wednesday, December 11th that allows the company to repurchase $7.50 billion in shares. This repurchase authorization allows the company to buy up to 16.9% of its shares through open market purchases. Shares repurchase programs are typically an indication that the company’s leadership believes its stock is undervalued.

Analysts Set New Price Targets

Several analysts have recently commented on the company. Wells Fargo & Company raised their target price on Kroger from $70.00 to $73.00 and gave the stock an “overweight” rating in a research report on Thursday, December 12th. Telsey Advisory Group restated an “outperform” rating and set a $73.00 price target on shares of Kroger in a research note on Monday. BMO Capital Markets increased their price target on Kroger from $60.00 to $63.00 and gave the stock a “market perform” rating in a research report on Thursday, December 12th. The Goldman Sachs Group reaffirmed a “buy” rating and set a $70.00 price objective on shares of Kroger in a report on Tuesday, February 4th. Finally, Bank of America increased their price target on Kroger from $70.00 to $75.00 and gave the company a “buy” rating in a research note on Friday, December 20th. Seven investment analysts have rated the stock with a hold rating, ten have issued a buy rating and one has assigned a strong buy rating to the company. Based on data from MarketBeat, the stock currently has a consensus 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 Kroger stock in a transaction that occurred on Thursday, December 19th. The shares were sold at an average price of $61.44, for a total value of $1,040,302.08. Following the completion of the sale, the chief financial officer now directly owns 53,782 shares in the company, valued at $3,304,366.08. This trade represents a 23.94 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, SVP Timothy A. Massa sold 25,889 shares of Kroger stock in a transaction that occurred on Friday, December 6th. The shares were sold at an average price of $60.12, for a total transaction of $1,556,446.68. Following the transaction, the senior vice president now directly owns 115,861 shares of the company’s stock, valued at approximately $6,965,563.32. This trade represents a 18.26 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 195,448 shares of company stock valued at $12,143,923. 1.40% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of the company. Vanguard Group Inc. increased its stake in Kroger by 0.9% during the fourth quarter. Vanguard Group Inc. now owns 82,223,697 shares of the company’s stock worth $5,027,979,000 after purchasing an additional 773,182 shares during the period. State Street Corp boosted its holdings in shares of Kroger by 6.8% in the third quarter. State Street Corp now owns 33,057,629 shares of the company’s stock valued at $1,894,202,000 after acquiring an additional 2,110,681 shares during the period. Geode Capital Management LLC boosted its holdings in shares of Kroger by 2.6% in the fourth quarter. Geode Capital Management LLC now owns 16,436,688 shares of the company’s stock valued at $1,002,479,000 after acquiring an additional 416,962 shares during the period. Dimensional Fund Advisors LP boosted its holdings in shares of Kroger by 0.9% in the fourth quarter. Dimensional Fund Advisors LP now owns 14,113,596 shares of the company’s stock valued at $863,060,000 after acquiring an additional 120,250 shares during the period. Finally, Norges Bank acquired a new stake in shares of Kroger during the fourth quarter worth $598,390,000. Institutional investors and hedge funds own 80.93% of the company’s stock.

Kroger Trading Up 2.2 %

The company has a quick ratio of 1.07, a current ratio of 1.54 and a debt-to-equity ratio of 1.74. The company has a fifty day moving average of $62.16 and a two-hundred day moving average of $58.82. The stock has a market capitalization of $46.26 billion, a price-to-earnings ratio of 17.19, a P/E/G ratio of 2.85 and a beta of 0.51.

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.