The Kroger Co. (NYSE:KR) Stake Trimmed by Pacer Advisors Inc.

Key Points

• Pacer Advisors Inc. has reduced its shares in Kroger Co. by 60% during the first quarter, now holding 34,060 shares valued at approximately $2.3 million.
• Wall Street analysts have given Kroger a consensus rating of "Moderate Buy" with a price target averaging around $70.16, following positive upgrades from firms like Wall Street Zen and JPMorgan Chase.
• Kroger announced an increase in its quarterly dividend to $0.35 per share, set to be paid on September 1st, reflecting a dividend yield of 2.02%.

Pacer Advisors Inc. trimmed its position in The Kroger Co. (NYSE:KR - Free Report) by 60.0% during the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 34,060 shares of the company's stock after selling 51,111 shares during the period. Pacer Advisors Inc.'s holdings in Kroger were worth $2,306,000 at the end of the most recent reporting period.

A number of other institutional investors and hedge funds also recently added to or reduced their stakes in the company. Geode Capital Management LLC lifted its holdings in shares of Kroger by 2.6% during the 4th quarter. Geode Capital Management LLC now owns 16,436,688 shares of the company's stock worth $1,002,479,000 after acquiring an additional 416,962 shares during the period. Dimensional Fund Advisors LP lifted its holdings in shares of Kroger by 0.9% during the 4th quarter. Dimensional Fund Advisors LP now owns 14,113,596 shares of the company's stock worth $863,060,000 after acquiring an additional 120,250 shares during the period. Northern Trust Corp lifted its holdings in shares of Kroger by 13.3% during the 4th quarter. Northern Trust Corp now owns 7,829,401 shares of the company's stock worth $478,768,000 after acquiring an additional 916,230 shares during the period. FMR LLC increased its position in Kroger by 39.1% during the 4th quarter. FMR LLC now owns 7,054,824 shares of the company's stock worth $431,402,000 after purchasing an additional 1,981,259 shares in the last quarter. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its position in Kroger by 15.7% during the 4th 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 purchasing an additional 865,699 shares in the last quarter. 80.93% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

A number of analysts recently issued reports on the stock. Guggenheim increased their target price on shares of Kroger from $73.00 to $78.00 and gave the stock a "buy" rating in a research report on Monday, June 23rd. 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. Barclays assumed coverage on shares of Kroger in a research report on Monday, July 21st. They set an "equal weight" rating and a $75.00 target price for the company. JPMorgan Chase & Co. increased their target price on shares of Kroger from $72.00 to $82.00 and gave the stock an "overweight" rating in a research report on Thursday, May 1st. Finally, UBS Group reaffirmed a "neutral" rating and issued a $74.00 price objective (up previously from $66.00) on shares of Kroger in a research report on Monday, June 23rd. Ten investment analysts have rated the stock with a hold rating, eight have assigned a buy rating and one has assigned a strong buy rating to the company's stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $70.16.

Insider Activity at Kroger

In related news, EVP Gabriel Arreaga sold 37,960 shares of Kroger 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 transaction, the executive vice president directly owned 75,218 shares of the company's stock, valued at $5,448,791.92. The trade was a 33.54% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, VP Carin L. Fike sold 16,475 shares of Kroger stock in a transaction dated Monday, June 23rd. The stock was sold at an average price of $73.79, for a total value of $1,215,690.25. Following the transaction, the vice president directly owned 49,360 shares in the company, valued at approximately $3,642,274.40. The trade was a 25.02% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders sold 198,948 shares of company stock valued at $14,422,926. 0.44% of the stock is owned by corporate insiders.

Kroger Stock Performance

KR traded up $1.32 during trading hours on Friday, hitting $71.42. 6,887,648 shares of the stock were exchanged, compared to its average volume of 7,126,661. The stock has a 50-day simple moving average of $69.36 and a 200-day simple moving average of $67.28. The Kroger Co. has a 12 month low of $50.69 and a 12 month high of $74.11. The stock has a market cap of $47.20 billion, a price-to-earnings ratio of 19.46, a price-to-earnings-growth ratio of 2.21 and a beta of 0.59. 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 announced its quarterly earnings data on Friday, June 20th. The company reported $1.49 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.45 by $0.04. The firm had revenue of $45.12 billion for the quarter, compared to analysts' expectations of $45.35 billion. Kroger had a return on equity of 30.01% and a net margin of 1.76%. The firm's revenue for the quarter was down .3% on a year-over-year basis. During the same period last year, the business posted $1.43 earnings per share. Analysts anticipate that The Kroger Co. will post 4.44 earnings per share for the current year.

Kroger Increases Dividend

The firm 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 dividend of $0.35 per share. This represents a $1.40 dividend on an annualized basis and a dividend yield of 2.0%. This is a positive change from Kroger's previous quarterly dividend of $0.32. The ex-dividend date of this dividend is Friday, August 15th. Kroger's dividend payout ratio is 38.15%.

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.