Private Management Group Inc. Trims Stock Position in The Kroger Co. (NYSE:KR)

Private Management Group Inc. cut its stake in shares of The Kroger Co. (NYSE:KR) by 12.4% in the 4th quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund owned 82,312 shares of the company’s stock after selling 11,668 shares during the period. Private Management Group Inc.’s holdings in Kroger were worth $5,033,000 as of its most recent SEC filing.

Other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. Board of the Pension Protection Fund acquired a new position in Kroger during the 4th quarter worth approximately $1,113,000. Nordea Investment Management AB increased its position in Kroger by 3.8% during the 4th quarter. Nordea Investment Management AB now owns 4,052,534 shares of the company’s stock worth $249,717,000 after purchasing an additional 148,221 shares during the period. Charles Schwab Investment Management Inc. increased its position in Kroger by 1.1% during the 3rd quarter. Charles Schwab Investment Management Inc. now owns 4,890,887 shares of the company’s stock worth $280,248,000 after purchasing an additional 53,006 shares during the period. Sumitomo Mitsui Trust Group Inc. increased its position in Kroger by 1.7% during the 3rd 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 period. Finally, World Investment Advisors LLC acquired a new position in Kroger during the 3rd quarter worth approximately $566,000. 80.93% of the stock is owned by hedge funds and other institutional investors.

Kroger Trading Down 0.9 %

NYSE:KR opened at $64.86 on Friday. The business’s 50-day moving average is $60.66 and its two-hundred day moving average is $57.31. 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 Kroger Co. has a 12 month low of $44.48 and a 12 month high of $65.75. The firm 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 announced its earnings results on Thursday, December 5th. The company reported $0.98 earnings per share for the quarter, beating the consensus estimate of $0.97 by $0.01. The company had revenue of $33.63 billion during 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% on a year-over-year basis. During the same period last year, the firm earned $0.95 earnings per share. Research analysts predict that The Kroger Co. will post 4.44 earnings per share for the current fiscal year.

Kroger declared that its Board of Directors has initiated a share buyback program on Wednesday, December 11th that allows the company to repurchase $7.50 billion in outstanding shares. This repurchase authorization allows the company to buy up to 16.9% of its shares through open market purchases. Shares repurchase programs are usually a sign that the company’s leadership believes its stock is undervalued.

Kroger Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Saturday, March 1st. Stockholders of record on Friday, February 14th will be paid a dividend of $0.32 per share. The ex-dividend date is Friday, February 14th. This represents a $1.28 annualized dividend and a dividend yield of 1.97%. Kroger’s dividend payout ratio is presently 33.86%.

Insider Activity

In related news, SVP Timothy A. Massa sold 25,889 shares of Kroger stock in a transaction dated 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 completion of the transaction, the senior vice president now directly owns 115,861 shares in the company, valued at approximately $6,965,563.32. This trade represents a 18.26 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CFO Todd A. Foley sold 16,932 shares of Kroger stock in a transaction dated 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 completion of the transaction, the chief financial officer now 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 disclosure for this sale can be found here. Insiders sold 195,448 shares of company stock worth $12,143,923 over the last ninety days. Corporate insiders own 1.40% of the company’s stock.

Analyst Ratings Changes

Several equities analysts have issued reports on KR shares. BMO Capital Markets boosted their target price on Kroger from $60.00 to $63.00 and gave the stock a “market perform” rating in a research report on Thursday, December 12th. Morgan Stanley upped their price target on Kroger from $62.00 to $65.00 and gave the stock an “equal weight” rating in a report on Tuesday, January 21st. The Goldman Sachs Group reiterated a “buy” rating and set a $70.00 target price on shares of Kroger in a report on Tuesday. Wells Fargo & Company increased their target price on Kroger from $70.00 to $73.00 and gave the company an “overweight” rating in a report on Thursday, December 12th. Finally, Roth Mkm increased their target price on Kroger from $52.00 to $56.00 and gave the company a “neutral” rating in a report on Friday, December 6th. Seven equities research 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 stock. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $66.81.

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.