Kroger (NYSE:KR) Sets New 1-Year High on Earnings Beat

The Kroger Co. (NYSE:KR)’s share price hit a new 52-week high on Friday after the company announced better than expected quarterly earnings. The company traded as high as $66.35 and last traded at $66.11, with a volume of 1071826 shares. The stock had previously closed at $63.78.

The company reported $1.14 earnings per share for the quarter, topping analysts’ consensus estimates of $1.09 by $0.05. Kroger had a return on equity of 27.73% and a net margin of 1.85%. The company had revenue of $34.31 billion during the quarter, compared to analysts’ expectations of $34.96 billion.

Kroger Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Saturday, March 1st. Stockholders of record on Friday, February 14th were issued a $0.32 dividend. The ex-dividend date was Friday, February 14th. This represents a $1.28 dividend on an annualized basis and a dividend yield of 1.92%. Kroger’s dividend payout ratio (DPR) is 33.86%.

Kroger declared that its board has approved a stock buyback plan on Wednesday, December 11th that allows the company to repurchase $7.50 billion in shares. This repurchase authorization allows the company to purchase up to 16.9% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company’s management believes its stock is undervalued.

Wall Street Analyst Weigh In

Several equities analysts recently commented on KR shares. Roth Mkm upped their target price on Kroger from $52.00 to $56.00 and gave the company a “neutral” rating in a research note on Friday, December 6th. Morgan Stanley upped their target price on Kroger from $62.00 to $65.00 and gave the company an “equal weight” rating in a research note on Tuesday, January 21st. Guggenheim upped their target price on Kroger from $68.00 to $71.00 and gave the company a “buy” rating in a research note on Friday, February 7th. JPMorgan Chase & Co. upped their price target on Kroger from $71.00 to $72.00 and gave the stock an “overweight” rating in a research note on Friday. Finally, Citigroup upped their price target on Kroger from $61.00 to $65.00 and gave the stock a “neutral” rating in a research note on Friday. Seven analysts have rated the stock with a hold rating, ten have given a buy rating and one has assigned a strong buy rating to the stock. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $67.50.

Insider Activity at Kroger

In related news, SVP Yael Cosset sold 20,000 shares of the stock in a transaction dated Tuesday, December 10th. The stock was sold at an average price of $58.39, for a total value of $1,167,800.00. Following the completion of the transaction, the senior vice president now owns 144,620 shares of the company’s stock, valued at approximately $8,444,361.80. This represents a 12.15 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this link. Also, SVP Stuart Aitken sold 132,627 shares of the stock in a transaction dated Thursday, December 12th. The shares were sold at an average price of $63.18, for a total value of $8,379,373.86. Following the completion of the transaction, the senior vice president now directly owns 217,523 shares of the company’s stock, valued at $13,743,103.14. This represents a 37.88 % decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 169,559 shares of company stock valued at $10,587,476. Insiders own 1.40% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of the company. Wood Tarver Financial Group LLC bought a new position in Kroger during the 4th quarter worth approximately $62,000. Comprehensive Money Management Services LLC bought a new position in Kroger during the 4th quarter worth approximately $320,000. Dogwood Wealth Management LLC raised its position in shares of Kroger by 8.7% during the 4th quarter. Dogwood Wealth Management LLC now owns 10,011 shares of the company’s stock worth $612,000 after purchasing an additional 804 shares during the period. Park Square Financial Group LLC acquired a new stake in shares of Kroger during the 4th quarter worth approximately $120,000. Finally, Universal Beteiligungs und Servicegesellschaft mbH acquired a new stake in shares of Kroger during the 4th quarter worth approximately $49,760,000. Institutional investors own 80.93% of the company’s stock.

Kroger Price Performance

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 business has a 50-day moving average price of $62.27 and a two-hundred day moving average price of $58.95. The firm has a market capitalization of $48.34 billion, a price-to-earnings ratio of 17.67, a PEG ratio of 2.85 and a beta of 0.51.

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.