Traders Buy High Volume of Kroger Call Options (NYSE:KR)

The Kroger Co. (NYSE:KR - Get Free Report) was the target of unusually large options trading activity on Thursday. Stock investors purchased 24,264 call options on the stock. This is an increase of 76% compared to the typical daily volume of 13,777 call options.

Analyst Ratings Changes

KR has been the subject of a number of analyst reports. Morgan Stanley increased their price target on Kroger from $62.00 to $65.00 and gave the company an "equal weight" rating in a research report on Tuesday, January 21st. Telsey Advisory Group reiterated an "outperform" rating and issued a $73.00 target price on shares of Kroger in a report on Monday, March 3rd. Bank of America upped their price objective on shares of Kroger from $70.00 to $75.00 and gave the stock a "buy" rating in a research report on Friday, December 20th. Wells Fargo & Company lifted their target price on shares of Kroger from $70.00 to $73.00 and gave the stock an "overweight" rating in a research report on Thursday, December 12th. Finally, Roth Capital set a $58.00 target price on Kroger in a report on Thursday, March 6th. Seven investment analysts have rated the stock with a hold rating, ten have assigned a buy rating and one has given a strong buy rating to the company. Based on data from MarketBeat.com, Kroger presently has an average rating of "Moderate Buy" and a consensus target price of $66.88.

Insider Buying and Selling

In related news, CFO Todd A. Foley sold 28,105 shares of the company's stock in a transaction dated Friday, March 7th. The shares were sold at an average price of $66.62, for a total value of $1,872,355.10. Following the sale, the chief financial officer now owns 52,861 shares in the company, valued at $3,521,599.82. This represents a 34.71 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, SVP Kenneth C. Kimball sold 11,000 shares of Kroger stock in a transaction dated Friday, March 21st. The shares were sold at an average price of $65.37, for a total value of $719,070.00. Following the transaction, the senior vice president now owns 127,106 shares of the company's stock, valued at $8,308,919.22. This trade represents a 7.96 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 223,244 shares of company stock valued at $15,001,418 over the last ninety days. 1.40% of the stock is owned by corporate insiders.

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Institutional Trading of Kroger

Large investors have recently modified their holdings of the business. Millstone Evans Group LLC purchased a new position in Kroger in the 4th quarter worth approximately $25,000. Whipplewood Advisors LLC bought a new stake in Kroger in the 4th quarter worth approximately $26,000. TCTC Holdings LLC purchased a new stake in Kroger in the fourth quarter worth approximately $27,000. Transce3nd LLC purchased a new position in shares of Kroger during the fourth quarter worth approximately $28,000. Finally, Lee Danner & Bass Inc. bought a new stake in shares of Kroger in the 4th quarter worth approximately $32,000. Institutional investors own 80.93% of the company's stock.

Kroger Stock Performance

Shares of NYSE KR traded up $1.05 during midday trading on Monday, hitting $67.77. The company's stock had a trading volume of 7,584,790 shares, compared to its average volume of 5,099,037. The stock has a fifty day moving average price of $64.04 and a 200 day moving average price of $60.43. The firm has a market capitalization of $49.04 billion, a price-to-earnings ratio of 17.93, a P/E/G ratio of 2.85 and a beta of 0.51. Kroger has a one year low of $49.04 and a one year high of $68.51. 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 (NYSE:KR - Get Free Report) last issued its quarterly earnings data on Thursday, March 6th. The company reported $1.14 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.09 by $0.05. The business had revenue of $34.31 billion for the quarter, compared to analysts' expectations of $34.96 billion. Kroger had a return on equity of 27.73% and a net margin of 1.85%. On average, research analysts forecast that Kroger will post 4.44 EPS for the current fiscal year.

Kroger Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Sunday, June 1st. Investors of record on Thursday, May 15th will be paid a dividend of $0.32 per share. This represents a $1.28 annualized dividend and a yield of 1.89%. The ex-dividend date of this dividend is Thursday, May 15th. Kroger's dividend payout ratio is 34.88%.

Kroger declared that its Board of Directors has authorized a share repurchase program on Wednesday, December 11th that allows the company to repurchase $7.50 billion in outstanding shares. This repurchase authorization allows the company to purchase up to 16.9% of its stock through open market purchases. Stock repurchase programs are generally a sign that the company's leadership believes its shares are 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.