Kroger (NYSE:KR) Receives Buy Rating from The Goldman Sachs Group

The Goldman Sachs Group reiterated their buy rating on shares of Kroger (NYSE:KR) in a research note issued to investors on Tuesday, MarketBeat.com reports. The Goldman Sachs Group currently has a $70.00 price target on the stock.

A number of other brokerages have also recently commented on KR. JPMorgan Chase & Co. lifted their price objective on shares of Kroger from $69.00 to $71.00 and gave the stock an “overweight” rating in a research note on Monday, January 6th. UBS Group upped their price objective on Kroger from $63.00 to $66.00 and gave the company a “neutral” rating in a research report on Thursday, December 12th. Jefferies Financial Group raised Kroger from a “hold” rating to a “buy” rating and boosted their target price for the company from $54.00 to $73.00 in a research report on Tuesday, December 3rd. Telsey Advisory Group restated an “outperform” rating and issued a $70.00 price target on shares of Kroger in a research report on Monday, December 23rd. Finally, BNP Paribas started coverage on shares of Kroger in a research note on Friday, October 18th. They issued a “neutral” rating and a $56.00 target price on the stock. Seven analysts have rated the stock with a hold rating, ten have issued a buy rating and one has given a strong buy rating to the company’s stock. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $66.81.

Kroger Stock Down 0.9 %

KR opened at $64.86 on Tuesday. Kroger has a 52 week low of $44.48 and a 52 week high of $65.75. The company has a quick ratio of 1.07, a current ratio of 1.54 and a debt-to-equity ratio of 1.74. The firm has a 50-day simple moving average of $60.66 and a two-hundred day simple moving average of $57.31. The company has a market capitalization of $46.93 billion, a PE ratio of 17.16, a price-to-earnings-growth ratio of 2.90 and a beta of 0.47.

Kroger (NYSE:KR) last released its quarterly earnings data on Thursday, December 5th. The company reported $0.98 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.97 by $0.01. The business had revenue of $33.63 billion for the quarter, compared to the consensus estimate of $34.19 billion. Kroger had a return on equity of 27.73% and a net margin of 1.85%. The company’s revenue was down 1.0% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.95 EPS. Analysts forecast that Kroger will post 4.44 earnings per share for the current fiscal year.

Kroger announced that its Board of Directors has authorized a share buyback plan on Wednesday, December 11th that permits the company to buyback $7.50 billion in shares. This buyback authorization permits the company to purchase up to 16.9% of its shares through open market purchases. Shares buyback plans are often an indication that the company’s leadership believes its stock is undervalued.

Kroger Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Saturday, March 1st. Investors of record on Friday, February 14th will be paid a $0.32 dividend. The ex-dividend date of this dividend is Friday, February 14th. This represents a $1.28 annualized dividend and a yield of 1.97%. Kroger’s dividend payout ratio (DPR) is currently 33.86%.

Insiders Place Their Bets

In other news, CFO Todd A. Foley sold 16,932 shares of Kroger stock in a transaction 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 directly owns 53,782 shares in the company, valued at approximately $3,304,366.08. This trade represents a 23.94 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, SVP Timothy A. Massa sold 25,889 shares of the company’s stock in a transaction on Friday, December 6th. The stock was sold at an average price of $60.12, for a total value of $1,556,446.68. Following the sale, the senior vice president now owns 115,861 shares of the company’s stock, valued at $6,965,563.32. This trade represents a 18.26 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 195,448 shares of company stock worth $12,143,923. 1.40% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Kroger

Large investors have recently added to or reduced their stakes in the company. Whipplewood Advisors LLC purchased a new position in shares of Kroger in the 4th quarter worth approximately $26,000. Centricity Wealth Management LLC acquired a new position in shares of Kroger during the fourth quarter worth $32,000. Northwest Investment Counselors LLC purchased a new stake in shares of Kroger during the 3rd quarter valued at $34,000. Adirondack Trust Co. increased its position in Kroger by 1,628.1% during the 4th quarter. Adirondack Trust Co. now owns 553 shares of the company’s stock valued at $34,000 after buying an additional 521 shares in the last quarter. Finally, Crews Bank & Trust purchased a new stake in shares of Kroger during the fourth quarter worth about $39,000. 80.93% of the stock is currently owned by institutional investors.

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.