Dark Forest Capital Management LP Acquires New Position in The Kroger Co. $KR

Key Points

• Dark Forest Capital Management LP invested approximately $3.97 million in The Kroger Co., acquiring 58,572 shares as documented in its recent 13F filing.
• The Kroger Co. recently increased its quarterly dividend from $0.32 to $0.35, resulting in an annualized dividend yield of 2.0%.
• Kroger's Q1 earnings report showed $1.49 earnings per share, surpassing analysts' estimates, with revenue slightly down 0.3% year-over-year.

Dark Forest Capital Management LP acquired a new stake in The Kroger Co. (NYSE:KR - Free Report) during the 1st quarter, according to the company in its most recent filing with the SEC. The institutional investor acquired 58,572 shares of the company's stock, valued at approximately $3,965,000.

Several other large investors have also recently added to or reduced their stakes in KR. Accent Capital Management LLC acquired a new position in Kroger in the 1st quarter valued at approximately $25,000. Garde Capital Inc. acquired a new position in Kroger in the 1st quarter valued at approximately $31,000. Capital Analysts LLC acquired a new position in Kroger in the 1st quarter valued at approximately $36,000. Sound Income Strategies LLC increased its stake in Kroger by 46.7% in the 1st quarter. Sound Income Strategies LLC now owns 550 shares of the company's stock valued at $37,000 after buying an additional 175 shares during the period. Finally, GKV Capital Management Co. Inc. acquired a new position in shares of Kroger during the 1st quarter worth $38,000. Institutional investors and hedge funds own 80.93% of the company's stock.

Kroger Price Performance

Shares of Kroger stock traded down $0.10 during mid-day trading on Friday, reaching $67.74. 5,575,044 shares of the stock were exchanged, compared to its average volume of 6,407,211. The company has a market cap of $44.77 billion, a price-to-earnings ratio of 18.46, a price-to-earnings-growth ratio of 2.16 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 firm has a 50-day simple moving average of $70.67 and a 200 day simple moving average of $68.79. The Kroger Co. has a fifty-two week low of $50.69 and a fifty-two week high of $74.90.

Kroger (NYSE:KR - Get Free Report) last announced its earnings results on Friday, June 20th. The company reported $1.49 earnings per share (EPS) 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 analysts' expectations of $45.35 billion. Kroger had a net margin of 1.89% and a return on equity of 34.71%. The firm's revenue for the quarter was down .3% on a year-over-year basis. During the same quarter last year, the company posted $1.43 EPS. Kroger has set its FY 2025 guidance at 4.600-4.800 EPS. On average, sell-side analysts predict that The Kroger Co. will post 4.44 EPS for the current fiscal year.

Kroger Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Monday, September 1st. Shareholders of record on Friday, August 15th were given a $0.35 dividend. This represents a $1.40 annualized dividend and a yield of 2.1%. The ex-dividend date was Friday, August 15th. This is a boost from Kroger's previous quarterly dividend of $0.32. Kroger's dividend payout ratio is 38.15%.

Analyst Upgrades and Downgrades

Several research analysts have recently commented on the stock. JPMorgan Chase & Co. restated a "neutral" rating and set a $75.00 price target (down previously from $82.00) on shares of Kroger in a research note on Wednesday, August 20th. Guggenheim increased their price target on shares of Kroger from $73.00 to $78.00 and gave the company a "buy" rating in a report on Monday, June 23rd. Melius Research raised shares of Kroger from a "strong sell" rating to a "hold" rating in a report on Tuesday, May 20th. Telsey Advisory Group reaffirmed an "outperform" rating and set a $82.00 price objective (up from $73.00) on shares of Kroger in a report on Friday, June 20th. Finally, Deutsche Bank Aktiengesellschaft raised their price objective on shares of Kroger from $57.00 to $67.00 and gave the stock a "hold" rating in a report on Monday, June 23rd. Seven analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the company's stock. According to MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus price target of $70.58.

Insider Transactions at Kroger

In other Kroger news, EVP Mary Ellen Adcock sold 34,250 shares of the firm's stock in a transaction dated Friday, June 27th. The shares were sold at an average price of $71.16, for a total value of $2,437,230.00. Following the completion of the sale, the executive vice president owned 184,473 shares in the company, valued at approximately $13,127,098.68. This trade represents a 15.66% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, Director Clyde R. Moore sold 3,810 shares of the firm's stock in a transaction dated Wednesday, July 16th. The shares were sold at an average price of $71.61, for a total transaction of $272,834.10. Following the completion of the sale, the director owned 85,850 shares of the company's stock, valued at $6,147,718.50. The trade was a 4.25% decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 198,948 shares of company stock worth $14,422,926. Corporate insiders own 0.44% of the company's stock.

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.