Kroger (NYSE:KR) Announces Quarterly Earnings Results

Kroger (NYSE:KR - Get Free Report) announced its quarterly earnings results on Thursday. The company reported $1.14 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.09 by $0.05, Zacks reports. Kroger had a return on equity of 27.73% and a net margin of 1.85%. The firm had revenue of $34.31 billion during the quarter, compared to the consensus estimate of $34.96 billion. Kroger updated its FY 2025 guidance to 4.600-4.800 EPS.

Kroger Trading Up 4.7 %

Shares of Kroger stock traded up $3.03 during trading hours on Friday, reaching $66.81. 10,791,860 shares of the company's stock were exchanged, compared to its average volume of 5,868,815. Kroger has a 52-week low of $49.04 and a 52-week high of $67.57. The firm has a market capitalization of $48.34 billion, a price-to-earnings ratio of 17.67, a price-to-earnings-growth ratio of 2.85 and a beta of 0.51. The company has a fifty day moving average of $62.27 and a 200-day moving average of $59.00. The company has a current ratio of 1.54, a quick ratio of 1.07 and a debt-to-equity ratio of 1.74.

Kroger Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Saturday, March 1st. Investors of record on Friday, February 14th were paid a dividend of $0.32 per share. This represents a $1.28 annualized dividend and a dividend yield of 1.92%. The ex-dividend date of this dividend was Friday, February 14th. Kroger's payout ratio is 33.86%.

Analysts Set New Price Targets

Several research firms have issued reports on KR. Jefferies Financial Group upgraded shares of Kroger from a "hold" rating to a "buy" rating and upped their price objective for the company from $54.00 to $73.00 in a research note on Tuesday, December 3rd. UBS Group upped their target price on Kroger from $63.00 to $66.00 and gave the company a "neutral" rating in a research report on Thursday, December 12th. Evercore ISI upped their target price on Kroger from $70.00 to $75.00 and gave the company an "outperform" rating in a research report on Thursday, February 6th. Guggenheim increased their price objective on Kroger from $68.00 to $71.00 and gave the company a "buy" rating in a report on Friday, February 7th. Finally, The Goldman Sachs Group reissued a "buy" rating and issued a $70.00 price objective on shares of Kroger in a report on Tuesday, February 4th. Seven 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 company. According to MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $67.50.

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Insider Buying and Selling

In related news, SVP Stuart Aitken sold 132,627 shares of the stock in a transaction on Thursday, December 12th. The stock was sold at an average price of $63.18, for a total value of $8,379,373.86. Following the transaction, the senior vice president now directly owns 217,523 shares of the company's stock, valued at approximately $13,743,103.14. This trade represents a 37.88 % decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CFO Todd A. Foley sold 16,932 shares of the 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 completion of the transaction, the chief financial officer now directly 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 disclosure for this sale can be found here. Over the last ninety days, insiders have sold 169,559 shares of company stock worth $10,587,476. 1.40% of the stock is owned by company insiders.

Institutional Inflows and Outflows

An institutional investor recently raised its position in Kroger stock. Brighton Jones LLC grew its holdings in The Kroger Co. (NYSE:KR - Free Report) by 27.3% during the fourth quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 15,733 shares of the company's stock after acquiring an additional 3,373 shares during the period. Brighton Jones LLC's holdings in Kroger were worth $962,000 as of its most recent SEC filing. Institutional investors and hedge funds own 80.93% of the company's stock.

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

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.