Synovus Financial Corp Acquires 4,937 Shares of The Kroger Co. $KR

Key Points

• Synovus Financial Corp increased its stake in The Kroger Co. by 44.8%, purchasing an additional 4,937 shares, bringing its total holdings to 15,953 shares valued at approximately $1.08 million.
• Kroger reported earnings of $1.49 per share, beating analysts' estimates, though revenue slightly declined by .3% year-over-year.
• The company announced a quarterly dividend increase to $0.35 per share, up from $0.32, reflecting a commitment to returning value to shareholders.

Synovus Financial Corp lifted its stake in The Kroger Co. (NYSE:KR - Free Report) by 44.8% in the 1st quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 15,953 shares of the company's stock after purchasing an additional 4,937 shares during the quarter. Synovus Financial Corp's holdings in Kroger were worth $1,080,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other large investors have also recently modified their holdings of the stock. Accent Capital Management LLC purchased a new position in Kroger in the 1st quarter worth about $25,000. Garde Capital Inc. purchased a new position in Kroger in the 1st quarter worth about $31,000. Capital Analysts LLC purchased a new position in Kroger in the 1st quarter worth about $36,000. Sound Income Strategies LLC raised its position in Kroger by 46.7% in the 1st quarter. Sound Income Strategies LLC now owns 550 shares of the company's stock worth $37,000 after buying an additional 175 shares during the last quarter. Finally, GKV Capital Management Co. Inc. purchased a new position in Kroger in the 1st quarter worth about $38,000. Hedge funds and other institutional investors own 80.93% of the company's stock.

Analyst Upgrades and Downgrades

A number of equities analysts have weighed in on the company. Melius Research raised Kroger from a "strong sell" rating to a "hold" rating in a research report on Tuesday, May 20th. Barclays assumed coverage on Kroger in a research report on Monday, July 21st. They issued an "equal weight" rating and a $75.00 target price for the company. Evercore ISI boosted their target price on Kroger from $80.00 to $82.00 and gave the stock an "outperform" rating in a research report on Tuesday, August 12th. Morgan Stanley set a $76.00 target price on Kroger and gave the stock an "equal weight" rating in a research report on Monday, June 23rd. Finally, 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. Seven investment analysts have rated the stock with a Buy rating and twelve have assigned a Hold rating to the company. According to MarketBeat.com, Kroger presently has a consensus rating of "Hold" and an average price target of $70.58.

Insider Buying and Selling

In related news, EVP Gabriel Arreaga sold 37,960 shares of the stock in a transaction that occurred on Wednesday, June 25th. The shares were sold at an average price of $72.44, for a total value of $2,749,822.40. Following the completion of the sale, the executive vice president directly owned 75,218 shares of the company's stock, valued at approximately $5,448,791.92. This represents a 33.54% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, EVP Timothy A. Massa sold 8,415 shares of the stock in a transaction that occurred on Monday, June 23rd. The stock was sold at an average price of $74.00, for a total transaction of $622,710.00. Following the completion of the sale, the executive vice president directly owned 118,761 shares of the company's stock, valued at $8,788,314. This represents a 6.62% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 198,948 shares of company stock worth $14,422,926 in the last ninety days. Corporate insiders own 0.44% of the company's stock.

Kroger Stock Performance

Shares of Kroger stock traded up $0.37 during trading hours on Friday, reaching $67.83. 5,420,800 shares of the stock traded hands, compared to its average volume of 6,686,693. The company has a 50 day moving average price of $71.10 and a 200 day moving average price of $68.70. The firm has a market capitalization of $44.83 billion, a price-to-earnings ratio of 18.48, a P/E/G ratio of 2.16 and a beta of 0.59. The Kroger Co. has a one year low of $50.69 and a one year high of $74.90. The company has a quick ratio of 0.53, a current ratio of 0.95 and a debt-to-equity ratio of 1.92.

Kroger (NYSE:KR - Get Free Report) last released its quarterly earnings results on Friday, June 20th. The company reported $1.49 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.45 by $0.04. The business had revenue of $45.12 billion during the quarter, compared to the consensus estimate of $45.35 billion. Kroger had a return on equity of 34.71% and a net margin of 1.89%.The business's quarterly revenue was down .3% compared to the same quarter last year. During the same period in the previous year, the company posted $1.43 EPS. Kroger has set its FY 2025 guidance at 4.600-4.800 EPS. On average, equities research 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 announced a quarterly dividend, which will be paid on Monday, September 1st. Investors 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 represents a $1.40 annualized dividend and a yield of 2.1%. This is a positive change from Kroger's previous quarterly dividend of $0.32. Kroger's payout ratio is currently 38.15%.

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.