EntryPoint Capital LLC Invests $504,000 in The Kroger Co. $KR

Key Points

• EntryPoint Capital LLC invested $504,000 in Kroger Co., acquiring 7,443 shares during the first quarter, reflecting continued interest in the grocery retailer among institutional investors, who own approximately 80.93% of the company's stock.
• Kroger recently announced a quarterly dividend increase from $0.32 to $0.35, resulting in an annualized dividend of $1.40 and a yield of 2.0%.
• The company reported $1.49 earnings per share for the last quarter, exceeding analysts' estimates and reflecting a slight year-over-year revenue decline of 0.3% with total revenues of $45.12 billion.

EntryPoint Capital LLC purchased a new stake in shares of The Kroger Co. (NYSE:KR - Free Report) in the 1st quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The institutional investor purchased 7,443 shares of the company's stock, valued at approximately $504,000.

Other institutional investors also recently added to or reduced their stakes in the company. Accent Capital Management LLC bought a new position in Kroger during the first quarter valued at about $25,000. Transce3nd LLC bought a new position in Kroger during the fourth quarter valued at about $28,000. Garde Capital Inc. bought a new position in Kroger during the first quarter valued at about $31,000. Sound Income Strategies LLC grew its position in 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 buying an additional 175 shares during the period. Finally, GKV Capital Management Co. Inc. bought a new position in Kroger during the first quarter valued at about $38,000. Institutional investors own 80.93% of the company's stock.

Kroger Trading Up 1.4%

Shares of Kroger stock opened at $70.6990 on Wednesday. The Kroger Co. has a 12-month low of $50.69 and a 12-month high of $74.90. The company has a market cap of $46.72 billion, a price-to-earnings ratio of 19.26, 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 company's 50-day moving average price is $70.60 and its 200-day moving average price is $68.44.

Kroger (NYSE:KR - Get Free Report) last announced its quarterly 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. Kroger had a net margin of 1.89% and a return on equity of 34.71%. The firm had revenue of $45.12 billion for the quarter, compared to the consensus estimate of $45.35 billion. During the same period in the prior year, the firm posted $1.43 earnings per share. The company's revenue for the quarter was down .3% on a year-over-year basis. Kroger has set its FY 2025 guidance at 4.600-4.800 EPS. On average, equities analysts expect that The Kroger Co. will post 4.44 earnings per share for the current fiscal year.

Kroger Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Monday, September 1st. Stockholders of record on Friday, August 15th will be issued a $0.35 dividend. The ex-dividend date of this dividend is Friday, August 15th. 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 2.0%. Kroger's payout ratio is currently 38.15%.

Analyst Upgrades and Downgrades

Several research firms recently weighed in on KR. Morgan Stanley set a $76.00 price target on shares of Kroger and gave the company an "equal weight" rating in a research report on Monday, June 23rd. UBS Group restated a "neutral" rating and set a $74.00 price target (up previously from $66.00) on shares of Kroger in a research report on Monday, June 23rd. Guggenheim upped their price objective 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. Finally, Melius raised shares of Kroger from a "sell" rating to a "hold" rating and set a $70.00 price objective on the stock in a report on Tuesday, May 20th. Eight analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of "Hold" and an average price target of $70.53.

Insider Transactions at Kroger

In related news, 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 transaction, the executive vice president directly owned 118,761 shares in the company, valued at approximately $8,788,314. This represents a 6.62% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Clyde R. Moore sold 3,810 shares of the company's stock in a transaction that occurred on Wednesday, July 16th. The stock was sold at an average price of $71.61, for a total transaction of $272,834.10. Following the completion of the transaction, the director owned 85,850 shares in the company, valued at approximately $6,147,718.50. This trade represents a 4.25% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders sold 198,948 shares of company stock valued at $14,422,926. Company insiders own 0.44% of the company's stock.

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.

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