Kroger (NYSE:KR) Hits New 1-Year High Following Dividend Announcement

The Kroger Co. (NYSE:KR)’s share price reached a new 52-week high during mid-day trading on Monday following a dividend announcement from the company. The company traded as high as $63.95 and last traded at $64.07, with a volume of 2738010 shares changing hands. The stock had previously closed at $61.64.

The newly announced dividend which will be paid on Saturday, March 1st. Investors of record on Friday, February 14th will be paid a $0.32 dividend. This represents a $1.28 annualized dividend and a yield of 2.02%. The ex-dividend date of this dividend is Friday, February 14th. Kroger’s dividend payout ratio is presently 33.86%.

Wall Street Analyst Weigh In

Several research analysts have issued reports on the stock. Telsey Advisory Group reiterated an “outperform” rating and set a $70.00 target price on shares of Kroger in a report on Monday, December 23rd. Roth Mkm boosted their price objective on shares of Kroger from $52.00 to $56.00 and gave the company a “neutral” rating in a report on Friday, December 6th. Citigroup reaffirmed a “neutral” rating and set a $61.00 target price on shares of Kroger in a report on Friday, January 24th. Morgan Stanley lifted their price target on shares of Kroger from $62.00 to $65.00 and gave the company an “equal weight” rating in a research note on Tuesday, January 21st. Finally, UBS Group raised their price objective on Kroger from $63.00 to $66.00 and gave the company a “neutral” rating in a report on Thursday, December 12th. Seven equities research analysts have rated the stock with a hold rating, nine have given a buy rating and one has issued a strong buy rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average target price of $65.80.

Kroger Stock Up 2.7 %

The business has a fifty day moving average price of $60.43 and a two-hundred day moving average price of $57.13. 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 company has a market cap of $45.82 billion, a price-to-earnings ratio of 16.75, a P/E/G ratio of 2.90 and a beta of 0.47.

Kroger (NYSE:KR) last issued its quarterly earnings data on Thursday, December 5th. The company reported $0.98 EPS for the quarter, beating analysts’ consensus estimates of $0.97 by $0.01. The business had revenue of $33.63 billion for the quarter, compared to analyst estimates of $34.19 billion. Kroger had a return on equity of 27.73% and a net margin of 1.85%. The firm’s revenue for the quarter was down 1.0% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.95 EPS. On average, equities analysts predict that The Kroger Co. will post 4.44 earnings per share for the current year.

Kroger declared that its Board of Directors has initiated a stock buyback program on Wednesday, December 11th that authorizes the company to buyback $7.50 billion in outstanding shares. This buyback authorization authorizes the company to reacquire up to 16.9% of its stock through open market purchases. Stock buyback programs are generally an indication that the company’s leadership believes its shares are undervalued.

Insider Buying and Selling at Kroger

In other news, SVP Stuart Aitken sold 132,627 shares of the business’s stock in a transaction dated Thursday, December 12th. The stock was sold at an average price of $63.18, for a total value of $8,379,373.86. Following the sale, the senior vice president now directly owns 217,523 shares in the company, valued at $13,743,103.14. The trade was a 37.88 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CFO Todd A. Foley sold 16,932 shares of the firm’s stock in a transaction on Thursday, December 19th. The shares were 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 of the company’s stock, valued at approximately $3,304,366.08. This trade represents a 23.94 % decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders have sold 195,448 shares of company stock worth $12,143,923. Company insiders own 1.40% of the company’s stock.

Institutional Investors Weigh In On Kroger

Several hedge funds have recently added to or reduced their stakes in KR. Pinnacle Financial Partners Inc lifted its position in Kroger by 13.4% in the 4th quarter. Pinnacle Financial Partners Inc now owns 5,210 shares of the company’s stock valued at $319,000 after acquiring an additional 616 shares in the last quarter. Winebrenner Capital Management LLC bought a new position in shares of Kroger during the 4th quarter worth approximately $213,000. Navellier & Associates Inc. boosted its stake in shares of Kroger by 25.6% in the 4th quarter. Navellier & Associates Inc. now owns 16,563 shares of the company’s stock worth $1,013,000 after buying an additional 3,373 shares during the last quarter. Paradigm Asset Management Co. LLC bought a new position in shares of Kroger in the fourth quarter valued at approximately $1,321,000. Finally, Centricity Wealth Management LLC bought a new stake in Kroger during the fourth quarter worth $32,000. 80.93% of the stock is currently owned by institutional investors and hedge funds.

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.