The Kroger Co. (NYSE:KR) Stock Position Cut by Jensen Investment Management Inc.

Key Points

• Jensen Investment Management Inc. reduced its stake in The Kroger Co. by 30.1%, selling 36,290 shares and ending up with 84,340 shares valued at approximately $5.71 million.
• Kroger recently reported $1.49 earnings per share, exceeding analysts' expectations of $1.45, despite a slight revenue decline of 0.3% year-over-year.
• The company announced an increase in its quarterly dividend from $0.32 to $0.35, representing an annualized yield of 2.0%.

Jensen Investment Management Inc. lessened its stake in The Kroger Co. (NYSE:KR - Free Report) by 30.1% in the first quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 84,340 shares of the company's stock after selling 36,290 shares during the quarter. Jensen Investment Management Inc.'s holdings in Kroger were worth $5,709,000 at the end of the most recent quarter.

Other large investors have also made changes to their positions in the company. Dimensional Fund Advisors LP grew its position in shares of Kroger by 0.9% in the fourth quarter. Dimensional Fund Advisors LP now owns 14,113,596 shares of the company's stock valued at $863,060,000 after purchasing an additional 120,250 shares during the last quarter. Northern Trust Corp lifted its stake in Kroger by 13.3% in the 4th quarter. Northern Trust Corp now owns 7,829,401 shares of the company's stock valued at $478,768,000 after buying an additional 916,230 shares in the last quarter. FMR LLC grew its holdings in Kroger by 39.1% during the 4th quarter. FMR LLC now owns 7,054,824 shares of the company's stock valued at $431,402,000 after buying an additional 1,981,259 shares during the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its position in Kroger by 15.7% during the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 6,363,964 shares of the company's stock worth $389,156,000 after buying an additional 865,699 shares in the last quarter. Finally, Steadfast Capital Management LP acquired a new position in shares of Kroger in the fourth quarter worth $277,989,000. Hedge funds and other institutional investors own 80.93% of the company's stock.

Kroger Stock Up 0.0%

Kroger stock traded up $0.01 during midday trading on Thursday, hitting $73.74. 4,727,467 shares of the company were exchanged, compared to its average volume of 6,133,667. The company has a market cap of $48.74 billion, a PE ratio of 20.09, a price-to-earnings-growth ratio of 2.35 and a beta of 0.59. The Kroger Co. has a fifty-two week low of $50.69 and a fifty-two week high of $74.25. The company's fifty day moving average price is $69.81 and its 200-day moving average price is $67.75. The company has a debt-to-equity ratio of 1.92, a current ratio of 0.95 and a quick ratio of 0.53.

Kroger (NYSE:KR - Get Free Report) last posted its quarterly earnings data 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. Kroger had a net margin of 1.89% and a return on equity of 34.71%. The company had revenue of $45.12 billion during the quarter, compared to analysts' expectations of $45.35 billion. During the same period in the prior year, the company posted $1.43 EPS. The firm's revenue for the quarter was down .3% on a year-over-year basis. On average, research analysts predict that The Kroger Co. will post 4.44 EPS for the current fiscal year.

Kroger Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, September 1st. Investors of record on Friday, August 15th will be given a dividend of $0.35 per share. The ex-dividend date of this dividend is Friday, August 15th. This represents a $1.40 dividend on an annualized basis and a dividend yield of 1.9%. This is a boost from Kroger's previous quarterly dividend of $0.32. Kroger's payout ratio is currently 34.88%.

Analysts Set New Price Targets

A number of analysts recently issued reports on the stock. UBS Group restated a "neutral" rating and set a $74.00 target price (up previously from $66.00) on shares of Kroger in a research report on Monday, June 23rd. Barclays began coverage on Kroger in a research report on Monday, July 21st. They issued an "equal weight" rating and a $75.00 price objective for the company. Telsey Advisory Group reiterated an "outperform" rating and set a $82.00 target price (up from $73.00) on shares of Kroger in a research report on Friday, June 20th. Evercore ISI lowered their price target on Kroger from $76.00 to $75.00 and set an "outperform" rating for the company in a report on Tuesday, June 17th. Finally, JPMorgan Chase & Co. upped their price objective on shares of Kroger from $72.00 to $82.00 and gave the company an "overweight" rating in a research note on Thursday, May 1st. Ten research analysts have rated the stock with a hold rating and nine have given a buy rating to the company's stock. According to data from MarketBeat, the company presently has an average rating of "Hold" and a consensus target price of $70.16.

Insider Buying and Selling at Kroger

In other news, EVP Mary Ellen Adcock sold 34,250 shares of the company's stock in a transaction that occurred on 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 completion of the transaction, the executive vice president directly owned 184,473 shares of the company's stock, valued at approximately $13,127,098.68. This represents a 15.66% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, VP Carin L. Fike sold 16,475 shares of the 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 directly owned 49,360 shares in the company, valued at approximately $3,642,274.40. This trade represents a 25.02% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 198,948 shares of company stock worth $14,422,926. 0.44% of the stock is owned by company insiders.

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.