Kroger Target of Unusually Large Options Trading (NYSE:KR)

The Kroger Co. (NYSE:KR) saw some unusual options trading activity on Thursday. Investors purchased 24,264 call options on the stock. This represents an increase of 76% compared to the typical volume of 13,777 call options.

Insider Activity at Kroger

In other news, CFO Todd A. Foley sold 28,105 shares of Kroger stock in a transaction dated Friday, March 7th. The stock was sold at an average price of $66.62, for a total transaction of $1,872,355.10. Following the transaction, the chief financial officer now directly owns 52,861 shares of the company’s stock, valued at $3,521,599.82. The trade was a 34.71 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, SVP Yael Cosset sold 115,149 shares of the firm’s stock in a transaction that occurred on Monday, March 10th. The stock was sold at an average price of $68.08, for a total transaction of $7,839,343.92. Following the sale, the senior vice president now owns 139,338 shares in the company, valued at approximately $9,486,131.04. The trade was a 45.25 % decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 223,244 shares of company stock worth $15,001,418. 1.40% of the stock is owned by company insiders.

Institutional Investors Weigh In On Kroger

Several hedge funds have recently modified their holdings of the company. Millstone Evans Group LLC purchased a new position in Kroger during the fourth quarter valued at $25,000. Whipplewood Advisors LLC purchased a new position in Kroger in the 4th quarter valued at about $26,000. TCTC Holdings LLC acquired a new stake in Kroger in the 4th quarter worth about $27,000. Transce3nd LLC purchased a new stake in Kroger during the 4th quarter worth approximately $28,000. Finally, Centricity Wealth Management LLC acquired a new position in shares of Kroger during the fourth quarter valued at approximately $32,000. 80.93% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

Several analysts have commented on KR shares. Jefferies Financial Group upgraded shares of Kroger from a “hold” rating to a “buy” rating and boosted their price target for the stock from $54.00 to $73.00 in a research note on Tuesday, December 3rd. JPMorgan Chase & Co. boosted their target price on Kroger from $71.00 to $72.00 and gave the stock an “overweight” rating in a research report on Friday, March 7th. Citigroup raised their price target on Kroger from $61.00 to $65.00 and gave the company a “neutral” rating in a report on Friday, March 7th. Morgan Stanley upped their price objective on Kroger from $62.00 to $65.00 and gave the stock an “equal weight” rating in a report on Tuesday, January 21st. Finally, Roth Capital set a $58.00 target price on shares of Kroger in a report on Thursday, March 6th. Seven research analysts have rated the stock with a hold rating, ten have issued a buy rating and one has issued a strong buy rating to the company’s stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $66.88.

Kroger Trading Up 0.2 %

Shares of Kroger stock opened at $66.16 on Friday. Kroger has a 12-month low of $49.04 and a 12-month high of $68.51. The firm’s 50 day simple moving average is $63.87 and its two-hundred day simple moving average is $60.21. 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 firm has a market capitalization of $47.87 billion, a price-to-earnings ratio of 17.50, a PEG ratio of 2.85 and a beta of 0.51.

Kroger (NYSE:KR) last announced its quarterly earnings data on Thursday, March 6th. The company reported $1.14 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.09 by $0.05. The firm had revenue of $34.31 billion during the quarter, compared to analysts’ expectations of $34.96 billion. Kroger had a return on equity of 27.73% and a net margin of 1.85%. Analysts predict that Kroger will post 4.44 EPS for the current year.

Kroger declared that its board has authorized a share repurchase plan on Wednesday, December 11th that permits the company to repurchase $7.50 billion in shares. This repurchase authorization permits the company to buy up to 16.9% of its shares through open market purchases. Shares repurchase plans are usually a sign that the company’s board believes its shares are undervalued.

Kroger Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Sunday, June 1st. Shareholders of record on Thursday, May 15th will be given a $0.32 dividend. The ex-dividend date is Thursday, May 15th. This represents a $1.28 annualized dividend and a yield of 1.93%. Kroger’s dividend payout ratio is presently 34.88%.

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.