Affinity Investment Advisors LLC Has $2.25 Million Stake in The Kroger Co. (NYSE:KR)

Key Points

• Affinity Investment Advisors LLC increased its stake in The Kroger Co. by 113% in Q1, now holding 33,274 shares valued at approximately $2.25 million, making up 1.8% of its portfolio.
• Several hedge funds have entered new positions in Kroger, including Steadfast Capital Management acquiring around $278 million worth of shares, highlighting increased institutional interest in the company.
• Kroger recently declared a boosted quarterly dividend of $0.35, up from $0.32, reflecting a 2.0% yield and a payout ratio of 38.15% for shareholders of record as of August 15.

Affinity Investment Advisors LLC lifted its stake in shares of The Kroger Co. (NYSE:KR - Free Report) by 113.0% during the first quarter, according to its most recent filing with the Securities and Exchange Commission. The firm owned 33,274 shares of the company's stock after purchasing an additional 17,649 shares during the quarter. Kroger comprises 1.8% of Affinity Investment Advisors LLC's portfolio, making the stock its 8th largest position. Affinity Investment Advisors LLC's holdings in Kroger were worth $2,252,000 as of its most recent filing with the Securities and Exchange Commission.

Other hedge funds have also made changes to their positions in the company. Steadfast Capital Management LP acquired a new stake in Kroger in the 4th quarter valued at approximately $277,989,000. Junto Capital Management LP acquired a new position in shares of Kroger during the fourth quarter valued at $264,207,000. Nuveen LLC bought a new stake in shares of Kroger during the first quarter valued at about $178,385,000. Alyeska Investment Group L.P. bought a new stake in shares of Kroger during the fourth quarter valued at about $123,829,000. Finally, GAMMA Investing LLC lifted its holdings in Kroger by 7,363.9% in the first quarter. GAMMA Investing LLC now owns 1,706,397 shares of the company's stock worth $115,506,000 after purchasing an additional 1,683,535 shares during the period. Institutional investors own 80.93% of the company's stock.

Wall Street Analyst Weigh In

A number of analysts have commented on KR shares. JPMorgan Chase & Co. boosted their price target on shares of Kroger from $72.00 to $82.00 and gave the stock an "overweight" rating in a research report on Thursday, May 1st. Melius Research upgraded shares of Kroger from a "strong sell" rating to a "hold" rating in a research note on Tuesday, May 20th. Barclays began coverage on Kroger in a research report on Monday, July 21st. They issued an "equal weight" rating and a $75.00 target price for the company. Guggenheim lifted their price target on Kroger from $73.00 to $78.00 and gave the company a "buy" rating in a research report on Monday, June 23rd. Finally, Morgan Stanley set a $76.00 price objective on Kroger and gave the stock an "equal weight" rating in a research note on Monday, June 23rd. Ten equities research analysts have rated the stock with a hold rating and nine have assigned a buy rating to the stock. Based on data from MarketBeat, Kroger has an average rating of "Hold" and an average target price of $70.53.

Insider Transactions at Kroger

In related news, EVP Mary Ellen Adcock sold 34,250 shares of the business's stock in a transaction dated Friday, June 27th. The stock was sold at an average price of $71.16, for a total transaction of $2,437,230.00. Following the transaction, the executive vice president directly owned 184,473 shares in the company, valued at $13,127,098.68. The trade was a 15.66% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, EVP Timothy A. Massa sold 8,415 shares of the company's stock in a transaction that occurred on Monday, June 23rd. The shares were sold at an average price of $74.00, for a total value of $622,710.00. Following the completion of the transaction, the executive vice president directly owned 118,761 shares of the company's stock, valued at approximately $8,788,314. This trade represents a 6.62% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders sold 198,948 shares of company stock worth $14,422,926. 0.44% of the stock is currently owned by insiders.

Kroger Stock Up 0.6%

NYSE:KR opened at $69.67 on Friday. The business's fifty day moving average price is $70.40 and its 200 day moving average price is $68.32. The firm has a market capitalization of $46.04 billion, a price-to-earnings ratio of 18.98, a PEG ratio of 2.22 and a beta of 0.59. The company has a current ratio of 0.95, a quick ratio of 0.53 and a debt-to-equity ratio of 1.92. The Kroger Co. has a 1-year low of $50.69 and a 1-year high of $74.90.

Kroger (NYSE:KR - Get Free Report) last issued its earnings results on Friday, June 20th. The company reported $1.49 earnings per share for the quarter, beating analysts' consensus estimates of $1.45 by $0.04. The company had revenue of $45.12 billion for the quarter, compared to the consensus estimate of $45.35 billion. Kroger had a return on equity of 34.71% and a net margin of 1.89%. The firm's quarterly revenue was down .3% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.43 EPS. On average, sell-side analysts forecast that The Kroger Co. will post 4.44 earnings per share for the current fiscal year.

Kroger Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, September 1st. Shareholders of record on Friday, August 15th will be issued a $0.35 dividend. This is a boost from Kroger's previous quarterly dividend of $0.32. The ex-dividend date of this dividend is Friday, August 15th. This represents a $1.40 dividend on an annualized basis and a yield of 2.0%. Kroger's payout ratio is currently 38.15%.

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.

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