Traders Buy High Volume of Call Options on Kroger (NYSE:KR)

The Kroger Co. (NYSE:KR) was the target of unusually large options trading activity on Tuesday. Investors purchased 18,583 call options on the stock. This is an increase of approximately 47% compared to the average daily volume of 12,639 call options.

Kroger Price Performance

Shares of NYSE KR opened at $50.43 on Wednesday. Kroger has a fifty-two week low of $42.10 and a fifty-two week high of $58.34. The company has a debt-to-equity ratio of 0.97, a quick ratio of 0.45 and a current ratio of 0.86. The company has a market cap of $36.39 billion, a PE ratio of 17.21, a P/E/G ratio of 0.78 and a beta of 0.45. The business has a 50-day simple moving average of $52.93 and a two-hundred day simple moving average of $51.02.

Kroger (NYSE:KR) last released its earnings results on Thursday, June 20th. The company reported $1.43 earnings per share for the quarter, topping the consensus estimate of $1.33 by $0.10. The company had revenue of $45.27 billion for the quarter, compared to the consensus estimate of $44.86 billion. Kroger had a net margin of 1.43% and a return on equity of 29.89%. Kroger’s revenue was up .2% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $1.51 EPS. As a group, equities analysts expect that Kroger will post 4.44 EPS for the current fiscal year.

Kroger Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Sunday, September 1st. Investors of record on Thursday, August 15th will be paid a $1.28 dividend. This is a positive change from Kroger’s previous quarterly dividend of $0.29. The ex-dividend date is Thursday, August 15th. This represents a $5.12 dividend on an annualized basis and a yield of 10.15%. Kroger’s dividend payout ratio (DPR) is 43.69%.

Analysts Set New Price Targets

Several equities research analysts have recently weighed in on KR shares. Morgan Stanley lowered their price target on shares of Kroger from $58.00 to $57.00 and set an “equal weight” rating for the company in a research report on Monday, June 24th. Guggenheim upped their target price on Kroger from $60.00 to $61.00 and gave the stock a “buy” rating in a report on Tuesday, March 19th. StockNews.com upgraded Kroger from a “buy” rating to a “strong-buy” rating in a report on Tuesday. Wolfe Research upgraded Kroger to a “strong-buy” rating in a research note on Friday, June 21st. Finally, BNP Paribas reiterated an “underperform” rating and issued a $48.00 target price on shares of Kroger in a research note on Monday, April 8th. One equities research analyst has rated the stock with a sell rating, three have given a hold rating, six have issued a buy rating and two have assigned a strong buy rating to the company. According to data from MarketBeat, Kroger has a consensus rating of “Moderate Buy” and an average target price of $57.30.

Insiders Place Their Bets

In other Kroger news, VP Carin L. Fike sold 3,929 shares of the company’s stock in a transaction on Tuesday, April 23rd. The stock was sold at an average price of $57.03, for a total value of $224,070.87. Following the transaction, the vice president now owns 3,768 shares of the company’s stock, valued at approximately $214,889.04. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. In other Kroger news, SVP Valerie L. Jabbar sold 15,000 shares of the company’s stock in a transaction on Tuesday, April 23rd. The stock was sold at an average price of $55.52, for a total value of $832,800.00. Following the completion of the sale, the senior vice president now directly owns 77,696 shares in the company, valued at approximately $4,313,681.92. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, VP Carin L. Fike sold 3,929 shares of the firm’s stock in a transaction on Tuesday, April 23rd. The shares were sold at an average price of $57.03, for a total value of $224,070.87. Following the transaction, the vice president now owns 3,768 shares in the company, valued at approximately $214,889.04. The disclosure for this sale can be found here. Insiders sold a total of 55,796 shares of company stock valued at $3,118,767 over the last 90 days. Insiders own 1.40% of the company’s stock.

Institutional Trading of Kroger

Several large investors have recently added to or reduced their stakes in KR. International Assets Investment Management LLC raised its holdings in shares of Kroger by 4,810.7% during the fourth quarter. International Assets Investment Management LLC now owns 567,829 shares of the company’s stock worth $25,955,000 after purchasing an additional 556,266 shares during the last quarter. Royal London Asset Management Ltd. grew its holdings in Kroger by 4.3% during the third quarter. Royal London Asset Management Ltd. now owns 284,094 shares of the company’s stock worth $12,715,000 after acquiring an additional 11,707 shares during the period. Franklin Resources Inc. lifted its holdings in Kroger by 23.3% in the fourth quarter. Franklin Resources Inc. now owns 1,380,764 shares of the company’s stock valued at $63,115,000 after acquiring an additional 261,368 shares during the period. Unigestion Holding SA purchased a new stake in Kroger in the 4th quarter worth approximately $671,000. Finally, Cerity Partners LLC increased its holdings in shares of Kroger by 12.5% during the 4th quarter. Cerity Partners LLC now owns 156,275 shares of the company’s stock valued at $7,143,000 after purchasing an additional 17,380 shares in the last quarter. Hedge funds and other institutional investors own 80.93% of the company’s stock.

About Kroger

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.