Kroger (NYSE:KR) Hits New 52-Week High – Still a Buy?

Shares of The Kroger Co. (NYSE:KR) hit a new 52-week high during mid-day trading on Wednesday . The stock traded as high as $65.82 and last traded at $65.80, with a volume of 4961802 shares. The stock had previously closed at $65.05.

Analyst Upgrades and Downgrades

Several research analysts have recently issued reports on the stock. Telsey Advisory Group restated an “outperform” rating and issued a $70.00 target price on shares of Kroger in a report on Monday, December 23rd. BMO Capital Markets raised their price target on shares of Kroger from $60.00 to $63.00 and gave the stock a “market perform” rating in a report on Thursday, December 12th. Evercore ISI upped their price objective on shares of Kroger from $70.00 to $75.00 and gave the company an “outperform” rating in a research note on Thursday, February 6th. The Goldman Sachs Group reissued a “buy” rating and issued a $70.00 target price on shares of Kroger in a research note on Tuesday, February 4th. Finally, JPMorgan Chase & Co. upped their price target on Kroger from $69.00 to $71.00 and gave the company an “overweight” rating in a research report on Monday, January 6th. Seven equities research analysts have rated the stock with a hold rating, ten have given a buy rating and one has given a strong buy rating to the stock. According to MarketBeat, Kroger has an average rating of “Moderate Buy” and an average target price of $67.00.

Kroger Price Performance

The firm has a market capitalization of $47.63 billion, a P/E ratio of 17.41, a P/E/G ratio of 2.85 and a beta of 0.47. The company has a debt-to-equity ratio of 1.74, a current ratio of 1.54 and a quick ratio of 1.07. The stock’s fifty day simple moving average is $61.03 and its 200 day simple moving average is $57.64.

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

Kroger Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Saturday, March 1st. Investors of record on Friday, February 14th will be issued a dividend of $0.32 per share. This represents a $1.28 dividend on an annualized basis and a dividend yield of 1.94%. The ex-dividend date is Friday, February 14th. Kroger’s dividend payout ratio (DPR) is 33.86%.

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

Insider Transactions at Kroger

In other news, CFO Todd A. Foley sold 16,932 shares of the firm’s stock in a transaction that occurred on Thursday, December 19th. The stock was sold at an average price of $61.44, for a total value of $1,040,302.08. Following the transaction, the chief financial officer now owns 53,782 shares in the company, valued at $3,304,366.08. This trade represents a 23.94 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, SVP Timothy A. Massa sold 25,889 shares of the firm’s stock in a transaction on Friday, December 6th. The shares were sold at an average price of $60.12, for a total value of $1,556,446.68. Following the completion of the transaction, the senior vice president now owns 115,861 shares in the company, valued at $6,965,563.32. The trade was a 18.26 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 195,448 shares of company stock worth $12,143,923 over the last quarter. 1.40% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Kroger

A number of hedge funds have recently modified their holdings of KR. AMF Tjanstepension AB lifted its holdings in shares of Kroger by 25.5% in the 3rd quarter. AMF Tjanstepension AB now owns 212,250 shares of the company’s stock worth $12,170,000 after acquiring an additional 43,143 shares during the last quarter. CWM LLC increased its position in shares of Kroger by 0.8% during the third quarter. CWM LLC now owns 33,017 shares of the company’s stock worth $1,892,000 after acquiring an additional 253 shares during the period. Carnegie Investment Counsel acquired a new stake in shares of Kroger in the third quarter valued at $213,000. Exchange Traded Concepts LLC boosted its holdings in Kroger by 131.1% in the third quarter. Exchange Traded Concepts LLC now owns 30,516 shares of the company’s stock valued at $1,749,000 after purchasing an additional 17,314 shares during the period. Finally, ORG Partners LLC increased its holdings in Kroger by 85.4% during the 3rd quarter. ORG Partners LLC now owns 1,520 shares of the company’s stock worth $87,000 after purchasing an additional 700 shares during the period. Hedge funds and other institutional investors own 80.93% of the company’s stock.

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.