Canada Pension Plan Investment Board Decreases Stock Holdings in The Kroger Co. $KR

Key Points

• The Canada Pension Plan Investment Board reduced its holdings in The Kroger Co. by 39.3%, now owning approximately $73.6 million in stock after selling over 700,000 shares.
• Analysts have given mixed ratings for Kroger, with seven analysts rating it as a "Buy" and a consensus target price of $70.58.
• Kroger recently declared a quarterly dividend of $0.35 per share, an increase from the previous $0.32, signaling a positive outlook for the company's financial health.

Canada Pension Plan Investment Board trimmed its stake in shares of The Kroger Co. (NYSE:KR - Free Report) by 39.3% in the 1st quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund owned 1,087,273 shares of the company's stock after selling 704,531 shares during the period. Canada Pension Plan Investment Board owned approximately 0.16% of Kroger worth $73,598,000 as of its most recent filing with the Securities & Exchange Commission.

Several other hedge funds have also recently made changes to their positions in KR. Accent Capital Management LLC purchased a new position in shares of Kroger during the first quarter valued at approximately $25,000. Garde Capital Inc. purchased a new position in shares of Kroger during the first quarter valued at approximately $31,000. Capital Analysts LLC purchased a new position in shares of Kroger during the first quarter valued at approximately $36,000. Sound Income Strategies LLC raised its holdings in shares of Kroger by 46.7% during the first quarter. Sound Income Strategies LLC now owns 550 shares of the company's stock valued at $37,000 after purchasing an additional 175 shares during the last quarter. Finally, GKV Capital Management Co. Inc. purchased a new position in shares of Kroger during the first quarter valued at approximately $38,000. 80.93% of the stock is owned by hedge funds and other institutional investors.

Kroger Price Performance

Shares of KR traded down $0.50 during mid-day trading on Wednesday, reaching $68.14. The stock had a trading volume of 4,599,984 shares, compared to its average volume of 7,042,777. The firm has a market cap of $45.03 billion, a price-to-earnings ratio of 18.57, a PEG ratio of 2.16 and a beta of 0.59. The Kroger Co. has a 12 month low of $50.69 and a 12 month high of $74.90. The business has a fifty day moving average of $70.89 and a 200 day moving average of $68.73. The company has a debt-to-equity ratio of 1.92, a quick ratio of 0.53 and a current ratio of 0.95.

Kroger (NYSE:KR - Get Free Report) last posted its quarterly earnings results on Friday, June 20th. The company reported $1.49 earnings per share for the quarter, topping analysts' consensus estimates of $1.45 by $0.04. The business had revenue of $45.12 billion during the quarter, compared to analyst estimates of $45.35 billion. Kroger had a net margin of 1.89% and a return on equity of 34.71%. The company's revenue was down .3% on a year-over-year basis. During the same period in the prior year, the business posted $1.43 earnings per share. Kroger has set its FY 2025 guidance at 4.600-4.800 EPS. Equities analysts predict that The Kroger Co. will post 4.44 EPS for the current year.

Kroger Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Monday, September 1st. Investors of record on Friday, August 15th were given a dividend of $0.35 per share. This is a positive change from Kroger's previous quarterly dividend of $0.32. This represents a $1.40 dividend on an annualized basis and a dividend yield of 2.1%. The ex-dividend date was Friday, August 15th. Kroger's dividend payout ratio (DPR) is currently 38.15%.

Insider Activity

In related news, EVP Gabriel Arreaga sold 37,960 shares of the company's stock in a transaction on Wednesday, June 25th. The shares were sold at an average price of $72.44, for a total transaction of $2,749,822.40. Following the completion of the transaction, the executive vice president owned 75,218 shares in the company, valued at approximately $5,448,791.92. This represents a 33.54% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Clyde R. Moore sold 26,814 shares of the company's stock in a transaction on Friday, July 11th. The stock was sold at an average price of $70.50, for a total transaction of $1,890,387.00. Following the transaction, the director owned 99,143 shares of the company's stock, valued at approximately $6,989,581.50. This represents a 21.29% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 198,948 shares of company stock valued at $14,422,926 in the last quarter. Company insiders own 0.44% of the company's stock.

Analyst Ratings Changes

KR has been the subject of a number of research reports. Melius raised shares of Kroger from a "sell" rating to a "hold" rating and set a $70.00 target price for the company in a report on Tuesday, May 20th. Wall Street Zen cut shares of Kroger from a "strong-buy" rating to a "buy" rating in a report on Saturday, August 2nd. 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. Guggenheim upped their target price on shares of Kroger from $73.00 to $78.00 and gave the company a "buy" rating in a report on Monday, June 23rd. Finally, UBS Group reaffirmed a "neutral" rating and set a $74.00 target price (up from $66.00) on shares of Kroger in a report on Monday, June 23rd. Seven investment analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the company's stock. Based on data from MarketBeat, the company currently has an average rating of "Hold" and an average price target of $70.58.

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.