StockNews.com Upgrades Kroger (NYSE:KR) to “Strong-Buy”

Kroger (NYSE:KR) was upgraded by research analysts at StockNews.com from a “buy” rating to a “strong-buy” rating in a research report issued on Monday.

KR has been the subject of several other reports. Melius Research assumed coverage on Kroger in a report on Monday, September 23rd. They set a “hold” rating and a $55.00 price objective for the company. Morgan Stanley lifted their price objective on Kroger from $58.00 to $62.00 and gave the stock an “equal weight” rating in a report on Wednesday, December 11th. Telsey Advisory Group reaffirmed an “outperform” rating and set a $70.00 price objective on shares of Kroger in a report on Monday, December 23rd. Bank of America lifted their target price on shares of Kroger from $70.00 to $75.00 and gave the stock a “buy” rating in a research note on Friday, December 20th. Finally, BNP Paribas started coverage on shares of Kroger in a research note on Friday, October 18th. They set a “neutral” rating and a $56.00 price target on the stock. Six equities research analysts have rated the stock with a hold rating, eight have issued a buy rating and two have given a strong buy rating to the company’s stock. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $65.79.

Kroger Stock Performance

Shares of Kroger stock traded down $1.11 during trading hours on Monday, hitting $61.23. 10,798,350 shares of the company’s stock traded hands, compared to its average volume of 4,887,475. The company has a fifty day simple moving average of $59.51 and a 200-day simple moving average of $55.69. 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 has a market capitalization of $44.31 billion, a price-to-earnings ratio of 16.20, a PEG ratio of 0.97 and a beta of 0.48. Kroger has a 12-month low of $44.48 and a 12-month high of $63.59.

Kroger (NYSE:KR) last announced its quarterly earnings data on Thursday, December 5th. The company reported $0.98 EPS for the quarter, topping the consensus estimate of $0.97 by $0.01. Kroger had a net margin of 1.85% and a return on equity of 27.73%. The business had revenue of $33.63 billion for the quarter, compared to analyst estimates of $34.19 billion. During the same quarter in the previous year, the firm posted $0.95 earnings per share. The company’s revenue for the quarter was down 1.0% on a year-over-year basis. Equities research analysts anticipate that Kroger will post 4.43 EPS for the current fiscal year.

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

Insider Transactions at Kroger

In related news, CFO Todd A. Foley sold 16,932 shares of the firm’s stock in a transaction that occurred on Thursday, December 19th. The shares were sold at an average price of $61.44, for a total value of $1,040,302.08. Following the sale, the chief financial officer now directly owns 53,782 shares of the company’s stock, valued at $3,304,366.08. This trade represents a 23.94 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, VP Brian W. Nichols sold 6,922 shares of the business’s stock in a transaction that occurred on Monday, October 7th. The stock was sold at an average price of $55.80, for a total transaction of $386,247.60. Following the completion of the transaction, the vice president now directly owns 14,063 shares of the company’s stock, valued at approximately $784,715.40. This represents a 32.99 % decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 202,370 shares of company stock valued at $12,530,170. 1.40% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Kroger

A number of large investors have recently added to or reduced their stakes in KR. Charles Schwab Investment Management Inc. raised its stake in shares of Kroger by 1.1% during the third quarter. Charles Schwab Investment Management Inc. now owns 4,890,887 shares of the company’s stock worth $280,248,000 after acquiring an additional 53,006 shares in the last quarter. Sumitomo Mitsui Trust Group Inc. lifted its stake in Kroger by 1.7% in the third quarter. Sumitomo Mitsui Trust Group Inc. now owns 2,176,218 shares of the company’s stock worth $124,697,000 after purchasing an additional 36,083 shares during the last quarter. Lighthouse Investment Partners LLC bought a new stake in Kroger in the second quarter worth $10,336,000. World Investment Advisors LLC purchased a new stake in Kroger during the third quarter valued at about $566,000. Finally, Buck Wealth Strategies LLC purchased a new position in shares of Kroger in the second quarter worth about $6,524,000. Hedge funds and other institutional investors own 80.93% of the company’s stock.

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.