Kroger (NYSE:KR) Hits New 12-Month High – Should You Buy?

Shares of The Kroger Co. (NYSE:KR) reached a new 52-week high during trading on Wednesday . The stock traded as high as $68.68 and last traded at $67.58, with a volume of 390921 shares. The stock had previously closed at $68.14.

Analyst Ratings Changes

A number of research analysts have recently weighed in on the stock. Citigroup raised their price target on shares of Kroger from $61.00 to $65.00 and gave the company a “neutral” rating in a report on Friday, March 7th. Guggenheim lifted their price target on Kroger from $68.00 to $71.00 and gave the stock a “buy” rating in a research report on Friday, February 7th. Bank of America increased their price objective on Kroger from $70.00 to $75.00 and gave the company a “buy” rating in a research report on Friday, December 20th. UBS Group upped their target price on shares of Kroger from $63.00 to $66.00 and gave the company a “neutral” rating in a research note on Thursday, December 12th. Finally, Jefferies Financial Group upgraded shares of Kroger from a “hold” rating to a “buy” rating and boosted their price objective for the stock from $54.00 to $73.00 in a report on Tuesday, December 3rd. One investment analyst has rated the stock with a sell rating, seven have assigned a hold rating, ten have assigned a buy rating and one has given a strong buy rating to the company. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $66.39.

Kroger Stock Down 0.2 %

The firm has a market cap of $49.20 billion, a P/E ratio of 17.95, a P/E/G ratio of 2.85 and a beta of 0.51. The company has a debt-to-equity ratio of 1.74, a quick ratio of 1.07 and a current ratio of 1.54. The firm’s fifty day moving average is $64.41 and its 200 day moving average is $60.60.

Kroger (NYSE:KR) last issued its earnings results on Thursday, March 6th. The company reported $1.14 EPS for the quarter, beating the consensus estimate of $1.09 by $0.05. Kroger had a net margin of 1.85% and a return on equity of 27.73%. The company had revenue of $34.31 billion during the quarter, compared to analysts’ expectations of $34.96 billion. As a group, equities research analysts anticipate that The Kroger Co. will post 4.44 earnings per share for the current fiscal year.

Kroger Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Sunday, June 1st. Shareholders of record on Thursday, May 15th will be paid a $0.32 dividend. The ex-dividend date of this dividend is Thursday, May 15th. This represents a $1.28 dividend on an annualized basis and a yield of 1.88%. Kroger’s dividend payout ratio (DPR) is presently 34.88%.

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

Insider Buying and Selling

In related news, VP Brian W. Nichols sold 1,300 shares of the business’s stock in a transaction dated Thursday, March 13th. The stock was sold at an average price of $66.71, for a total transaction of $86,723.00. Following the transaction, the vice president now owns 12,090 shares in the company, valued at $806,523.90. The trade was a 9.71 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, SVP Kenneth C. Kimball sold 11,000 shares of the stock in a transaction dated Friday, March 21st. The stock was sold at an average price of $65.37, for a total transaction of $719,070.00. Following the completion of the transaction, the senior vice president now owns 127,106 shares of the company’s stock, valued at approximately $8,308,919.22. The trade was a 7.96 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 223,244 shares of company stock valued at $15,001,418. Company insiders own 1.40% of the company’s stock.

Institutional Trading of Kroger

Institutional investors have recently bought and sold shares of the company. MassMutual Private Wealth & Trust FSB boosted its stake in Kroger by 4.0% during the 1st quarter. MassMutual Private Wealth & Trust FSB now owns 6,368 shares of the company’s stock valued at $431,000 after purchasing an additional 245 shares during the last quarter. Mascagni Wealth Management Inc. bought a new position in Kroger during the 4th quarter valued at about $49,000. 111 Capital bought a new stake in shares of Kroger in the fourth quarter worth approximately $591,000. Wealth Enhancement Advisory Services LLC grew its holdings in shares of Kroger by 76.6% in the fourth quarter. Wealth Enhancement Advisory Services LLC now owns 282,941 shares of the company’s stock worth $17,302,000 after acquiring an additional 122,680 shares during the period. Finally, NorthCrest Asset Manangement LLC increased its position in shares of Kroger by 2.0% during the 4th quarter. NorthCrest Asset Manangement LLC now owns 22,521 shares of the company’s stock valued at $1,377,000 after purchasing an additional 432 shares during the last quarter. 80.93% of the stock is owned by hedge funds and other 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.