The Kroger Co. $KR Holdings Cut by Brandywine Global Investment Management LLC

Key Points

• Brandywine Global Investment Management LLC has reduced its stake in The Kroger Co. by 7.6%, selling 235,913 shares and now holds 2,872,407 shares, which is 1.4% of its total holdings.
• Kroger has increased its quarterly dividend from $0.32 to $0.35 per share, resulting in an annual yield of 2.0%.
• Analysts have a consensus rating of "Hold" on Kroger’s stock with a average target price of $70.53, with several analysts adjusting their price targets upward recently.

Brandywine Global Investment Management LLC lessened its stake in The Kroger Co. (NYSE:KR - Free Report) by 7.6% in the 1st quarter, according to the company in its most recent filing with the SEC. The institutional investor owned 2,872,407 shares of the company's stock after selling 235,913 shares during the quarter. Kroger makes up about 1.4% of Brandywine Global Investment Management LLC's portfolio, making the stock its 13th biggest holding. Brandywine Global Investment Management LLC owned 0.43% of Kroger worth $194,433,000 as of its most recent filing with the SEC.

Several other hedge funds and other institutional investors have also added to or reduced their stakes in KR. Accent Capital Management LLC acquired a new stake in Kroger in the 1st quarter valued at about $25,000. Transce3nd LLC acquired a new stake in shares of Kroger during the 4th quarter worth approximately $28,000. Garde Capital Inc. purchased a new stake in shares of Kroger during the 1st quarter valued at approximately $31,000. Sound Income Strategies LLC grew its position in Kroger by 46.7% in the first quarter. Sound Income Strategies LLC now owns 550 shares of the company's stock worth $37,000 after acquiring an additional 175 shares during the period. Finally, GKV Capital Management Co. Inc. acquired a new stake in shares of Kroger during the 1st quarter worth about $38,000. 80.93% of the stock is owned by hedge funds and other institutional investors.

Insider Activity at Kroger

In other news, VP Carin L. Fike sold 16,475 shares of the business's stock in a transaction dated Monday, June 23rd. The stock was sold at an average price of $73.79, for a total transaction of $1,215,690.25. Following the completion of the sale, the vice president owned 49,360 shares in the company, valued at approximately $3,642,274.40. The trade was a 25.02% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Clyde R. Moore sold 3,810 shares of Kroger stock in a transaction that occurred on Wednesday, July 16th. The shares were sold at an average price of $71.61, for a total transaction of $272,834.10. Following the sale, the director owned 85,850 shares in the company, valued at $6,147,718.50. This represents a 4.25% decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders sold 198,948 shares of company stock worth $14,422,926. 0.44% of the stock is owned by corporate insiders.

Wall Street Analyst Weigh In

Several brokerages recently weighed in on KR. Morgan Stanley set a $76.00 target price on shares of Kroger and gave the company an "equal weight" rating in a report on Monday, June 23rd. Melius Research upgraded shares of Kroger from a "strong sell" rating to a "hold" rating in a research note on Tuesday, May 20th. Telsey Advisory Group restated an "outperform" rating and issued a $82.00 price target (up from $73.00) on shares of Kroger in a research note on Friday, June 20th. UBS Group reaffirmed a "neutral" rating and set a $74.00 price objective (up from $66.00) on shares of Kroger in a research report on Monday, June 23rd. Finally, Guggenheim raised their target price on Kroger from $73.00 to $78.00 and gave the stock a "buy" rating in a research report on Monday, June 23rd. Ten analysts have rated the stock with a hold rating and nine have assigned a buy rating to the company. Based on data from MarketBeat.com, Kroger currently has a consensus rating of "Hold" and an average price target of $70.53.

Kroger Price Performance

Shares of Kroger stock traded up $0.16 on Monday, hitting $69.85. The company's stock had a trading volume of 7,392,295 shares, compared to its average volume of 6,594,552. The company has a quick ratio of 0.53, a current ratio of 0.95 and a debt-to-equity ratio of 1.92. The firm has a fifty day moving average price of $70.40 and a 200-day moving average price of $68.37. The Kroger Co. has a 52-week low of $50.69 and a 52-week high of $74.90. The company has a market capitalization of $46.16 billion, a P/E ratio of 19.03, a price-to-earnings-growth ratio of 2.22 and a beta of 0.59.

Kroger (NYSE:KR - Get Free Report) last posted its earnings results on Friday, June 20th. The company reported $1.49 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.45 by $0.04. The firm had revenue of $45.12 billion for the quarter, compared to analyst estimates of $45.35 billion. Kroger had a return on equity of 34.71% and a net margin of 1.89%. Kroger's 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, equities research analysts expect that The Kroger Co. will post 4.44 earnings per share for the current fiscal year.

Kroger Increases Dividend

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

Kroger 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.