Kroger (NYSE:KR) Sets New 12-Month High Following Analyst Upgrade

The Kroger Co. (NYSE:KR)’s stock price reached a new 52-week high during mid-day trading on Monday after Guggenheim raised their price target on the stock from $61.00 to $63.00. Guggenheim currently has a buy rating on the stock. Kroger traded as high as $60.41 and last traded at $60.37, with a volume of 1503183 shares changing hands. The stock had previously closed at $59.22.

Other equities analysts have also recently issued reports about the stock. StockNews.com cut shares of Kroger from a “strong-buy” rating to a “buy” rating in a research note on Monday, September 16th. Melius Research assumed coverage on shares of Kroger in a research note on Monday, September 23rd. They issued a “hold” rating and a $55.00 price target on the stock. Morgan Stanley increased their price objective on shares of Kroger from $57.00 to $58.00 and gave the stock an “equal weight” rating in a research note on Friday, September 13th. Evercore ISI raised their price objective on Kroger from $62.00 to $63.00 and gave the company an “outperform” rating in a report on Friday, September 13th. Finally, BNP Paribas started coverage on Kroger in a research report on Friday, October 18th. They set a “neutral” rating and a $56.00 price target for the company. Four analysts have rated the stock with a hold rating, eight have given a buy rating and one has assigned a strong buy rating to the stock. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $60.27.

Insider Activity at Kroger

In related news, VP Brian W. Nichols sold 6,922 shares of the business’s stock in a transaction on Monday, October 7th. The stock was sold at an average price of $55.80, for a total value of $386,247.60. Following the completion of the sale, the vice president now directly owns 14,063 shares in the company, valued at $784,715.40. The trade was a 32.99 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, SVP Valerie L. Jabbar sold 3,000 shares of the company’s stock in a transaction on Monday, September 23rd. The shares were sold at an average price of $55.91, for a total value of $167,730.00. Following the completion of the transaction, the senior vice president now directly owns 74,084 shares in the company, valued at approximately $4,142,036.44. This represents a 3.89 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders have sold 12,932 shares of company stock worth $721,243. Company insiders own 1.40% of the company’s stock.

Hedge Funds Weigh In On Kroger

Several institutional investors and hedge funds have recently modified their holdings of KR. Wellington Management Group LLP grew its holdings in shares of Kroger by 11,570.7% during the 3rd quarter. Wellington Management Group LLP now owns 2,729,788 shares of the company’s stock worth $156,417,000 after purchasing an additional 2,706,398 shares in the last quarter. Point72 Asset Management L.P. grew its stake in Kroger by 96.6% during the second quarter. Point72 Asset Management L.P. now owns 5,381,311 shares of the company’s stock worth $268,689,000 after buying an additional 2,643,811 shares in the last quarter. State Street Corp increased its holdings in Kroger by 6.8% in the 3rd quarter. State Street Corp now owns 33,057,629 shares of the company’s stock valued at $1,894,202,000 after buying an additional 2,110,681 shares during the period. Caisse DE Depot ET Placement DU Quebec raised its position in shares of Kroger by 110.5% in the 3rd quarter. Caisse DE Depot ET Placement DU Quebec now owns 3,574,651 shares of the company’s stock valued at $204,828,000 after buying an additional 1,876,397 shares in the last quarter. Finally, Marshall Wace LLP lifted its holdings in shares of Kroger by 698.8% during the 2nd quarter. Marshall Wace LLP now owns 1,878,479 shares of the company’s stock worth $93,792,000 after acquiring an additional 1,643,307 shares during the period. 80.93% of the stock is currently owned by institutional investors and hedge funds.

Kroger Price Performance

The company’s 50-day moving average is $56.96 and its 200-day moving average is $54.25. The firm has a market cap of $43.47 billion, a price-to-earnings ratio of 15.73, a price-to-earnings-growth ratio of 0.92 and a beta of 0.48. The company has a current ratio of 0.87, a quick ratio of 0.46 and a debt-to-equity ratio of 0.96.

Kroger (NYSE:KR) last issued its quarterly earnings results on Thursday, September 12th. The company reported $0.93 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.91 by $0.02. Kroger had a return on equity of 28.54% and a net margin of 1.86%. The company had revenue of $33.91 billion for the quarter, compared to analyst estimates of $34.09 billion. During the same quarter last year, the company posted $0.96 EPS. The company’s revenue for the quarter was up .2% compared to the same quarter last year. Equities research analysts predict that The Kroger Co. will post 4.46 earnings per share for the current year.

Kroger Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Sunday, December 1st. Investors of record on Friday, November 15th will be given a dividend of $0.32 per share. The ex-dividend date is Friday, November 15th. This represents a $1.28 dividend on an annualized basis and a yield of 2.13%. Kroger’s dividend payout ratio is currently 33.51%.

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.