MBB Public Markets I LLC Makes New $346,000 Investment in The Kroger Co. $KR

Key Points

• MBB Public Markets I LLC made a new investment in The Kroger Co., acquiring 5,117 shares valued at approximately $346,000, indicating strong institutional interest in the stock.
• Kroger's latest quarterly earnings surpassed analysts' expectations, with earnings per share of $1.49 beating the consensus estimate of $1.45, although revenue decreased by 0.3% compared to the previous year.
• The company has recently increased its quarterly dividend from $0.32 to $0.35, reflecting a commitment to shareholder returns while maintaining a payout ratio of 38.15%.

MBB Public Markets I LLC acquired a new position in The Kroger Co. (NYSE:KR - Free Report) during the first quarter, according to the company in its most recent filing with the SEC. The fund acquired 5,117 shares of the company's stock, valued at approximately $346,000.

A number of other institutional investors have also recently added to or reduced their stakes in KR. Steadfast Capital Management LP acquired a new position in Kroger in the 4th quarter worth $277,989,000. Junto Capital Management LP bought a new stake in shares of Kroger in the 4th quarter worth about $264,207,000. Wellington Management Group LLP increased its position in shares of Kroger by 85.3% in the 1st quarter. Wellington Management Group LLP now owns 6,397,771 shares of the company's stock worth $433,065,000 after purchasing an additional 2,945,848 shares during the last quarter. Nuveen LLC bought a new stake in shares of Kroger in the 1st quarter worth about $178,385,000. Finally, Alyeska Investment Group L.P. increased its position in shares of Kroger by 101.7% in the 1st quarter. Alyeska Investment Group L.P. now owns 4,084,584 shares of the company's stock worth $276,485,000 after purchasing an additional 2,059,574 shares during the last quarter. Institutional investors and hedge funds own 80.93% of the company's stock.

Insider Transactions at Kroger

In other Kroger news, EVP Yael Cosset sold 71,224 shares of the company's stock in a transaction dated Monday, June 23rd. The shares were sold at an average price of $73.49, for a total value of $5,234,251.76. Following the completion of the transaction, the executive vice president owned 139,124 shares in the company, valued at approximately $10,224,222.76. This represents a 33.86% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, EVP Gabriel Arreaga sold 37,960 shares of the company's stock in a transaction dated Wednesday, June 25th. The stock was 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 of the company's stock, valued at approximately $5,448,791.92. This trade represents a 33.54% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 198,948 shares of company stock worth $14,422,926 in the last quarter. 0.44% of the stock is currently owned by corporate insiders.

Kroger Price Performance

Shares of NYSE:KR opened at $67.74 on Monday. 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 Kroger Co. has a fifty-two week low of $50.69 and a fifty-two week high of $74.90. The firm has a 50-day simple moving average of $70.67 and a 200 day simple moving average of $68.82. The company has a market cap of $44.77 billion, a PE ratio of 18.46, a P/E/G ratio of 2.16 and a beta of 0.60.

Kroger (NYSE:KR - Get Free Report) last announced 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 business had revenue of $45.12 billion during the quarter, compared to the consensus estimate of $45.35 billion. During the same quarter in the prior year, the firm earned $1.43 EPS. The company's revenue for the quarter was down .3% compared to the same quarter last year. Kroger has set its FY 2025 guidance at 4.600-4.800 EPS. On average, sell-side analysts anticipate that The Kroger Co. will post 4.44 EPS for the current year.

Kroger Increases Dividend

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

Analysts Set New Price Targets

Several equities research analysts have recently weighed in on the stock. Barclays assumed coverage on shares of Kroger in a research report on Monday, July 21st. They issued an "equal weight" rating and a $75.00 target price for the company. JPMorgan Chase & Co. reissued a "neutral" rating and issued a $75.00 target price (down previously from $82.00) on shares of Kroger in a research report on Wednesday, August 20th. Evercore ISI boosted their target price on shares of Kroger from $80.00 to $82.00 and gave the stock an "outperform" rating in a research report on Tuesday, August 12th. Deutsche Bank Aktiengesellschaft boosted their target price on shares of Kroger from $57.00 to $67.00 and gave the stock a "hold" rating in a research report on Monday, June 23rd. Finally, Jefferies Financial Group set a $83.00 target price on shares of Kroger and gave the stock a "buy" rating in a research report on Monday, June 23rd. Seven equities research analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the stock. Based on data from MarketBeat.com, Kroger presently has a consensus rating of "Hold" and an average price target of $70.58.

About Kroger

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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