Investors Buy Shares of Kroger (KR) on Weakness

Traders purchased shares of Kroger Co (NYSE:KR) on weakness during trading hours on Monday. $85.41 million flowed into the stock on the tick-up and $33.82 million flowed out of the stock on the tick-down, for a money net flow of $51.59 million into the stock. Of all stocks tracked, Kroger had the 18th highest net in-flow for the day. Kroger traded down ($0.34) for the day and closed at $29.61

Several analysts have commented on KR shares. Credit Suisse Group set a $31.00 target price on Kroger and gave the company a “hold” rating in a research note on Friday, June 29th. Telsey Advisory Group increased their target price on Kroger from $27.00 to $29.00 and gave the company a “market perform” rating in a research note on Friday, June 22nd. Citigroup reiterated a “buy” rating and set a $34.00 target price on shares of Kroger in a research note on Tuesday, June 26th. Wolfe Research downgraded Kroger from a “market perform” rating to an “underperform” rating in a research note on Monday, June 25th. Finally, TheStreet upgraded Kroger from a “c+” rating to a “b” rating in a research note on Friday, June 29th. One analyst has rated the stock with a sell rating, fourteen have assigned a hold rating and eight have given a buy rating to the company’s stock. Kroger has a consensus rating of “Hold” and a consensus price target of $30.20.

The company has a market capitalization of $23.86 billion, a PE ratio of 14.76, a price-to-earnings-growth ratio of 2.16 and a beta of 0.94. The company has a quick ratio of 0.26, a current ratio of 0.73 and a debt-to-equity ratio of 1.65.

Kroger (NYSE:KR) last released its quarterly earnings results on Thursday, September 13th. The company reported $0.41 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $0.38 by $0.03. The firm had revenue of $27.87 billion for the quarter, compared to the consensus estimate of $27.95 billion. Kroger had a return on equity of 28.05% and a net margin of 3.05%. The company’s revenue for the quarter was up 1.0% on a year-over-year basis. During the same period last year, the business posted $0.39 EPS. analysts forecast that Kroger Co will post 2.11 EPS for the current year.

The company also recently declared a quarterly dividend, which will be paid on Saturday, December 1st. Stockholders of record on Thursday, November 15th will be paid a $0.14 dividend. The ex-dividend date is Wednesday, November 14th. This represents a $0.56 dividend on an annualized basis and a dividend yield of 1.89%. Kroger’s dividend payout ratio (DPR) is currently 27.45%.

In other news, insider Erin S. Sharp sold 25,314 shares of the firm’s stock in a transaction on Tuesday, September 18th. The stock was sold at an average price of $29.00, for a total value of $734,106.00. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, Director Susan J. Kropf sold 13,000 shares of the firm’s stock in a transaction on Thursday, July 19th. The stock was sold at an average price of $28.43, for a total value of $369,590.00. Following the completion of the transaction, the director now owns 101,171 shares in the company, valued at $2,876,291.53. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 42,314 shares of company stock worth $1,218,736. Company insiders own 1.07% of the company’s stock.

Several hedge funds have recently added to or reduced their stakes in KR. Landaas & Co. WI ADV bought a new position in Kroger in the 2nd quarter worth $100,000. CSat Investment Advisory L.P. bought a new position in Kroger in the 2nd quarter worth $109,000. Bridgeworth LLC bought a new position in Kroger in the 2nd quarter worth $109,000. Creative Financial Designs Inc. ADV raised its holdings in Kroger by 100.2% in the 2nd quarter. Creative Financial Designs Inc. ADV now owns 5,170 shares of the company’s stock worth $147,000 after purchasing an additional 2,587 shares during the period. Finally, Kiley Juergens Wealth Management LLC bought a new position in Kroger in the 2nd quarter worth $173,000. Hedge funds and other institutional investors own 78.68% of the company’s stock.

About Kroger (NYSE:KR)

The Kroger Co, together with its subsidiaries, operates as a retailer in the United States. It also manufactures and processes food products for sale in its supermarkets. The company operates supermarkets, multi-department stores, jewelry stores, and convenience stores. Its combination food and drug stores offer natural food and organic sections, pharmacies, general merchandise, pet centers, fresh seafood, and organic produce; multi-department stores provide general merchandise items, such as apparel, home fashion and furnishings, outdoor living, electronics, automotive products, toys, and fine jewelry; and price impact warehouse stores offer grocery, and health and beauty care items, as well as meat, dairy, baked goods, and fresh produce items.

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