TCW Group Inc. Buys New Position in The Kroger Co. (NYSE:KR)

Key Points

• TCW Group Inc. acquired a new stake in The Kroger Co. by purchasing 10,027 shares valued at approximately $679,000 in the first quarter.
• The Kroger Co. declared a quarterly dividend increase from $0.32 to $0.35 per share, representing a yield of 2.02%.
• Analysts have set a consensus price target for Kroger at $70.16, with most recommending "Moderate Buy" based on recent evaluations.

TCW Group Inc. bought a new position in shares of The Kroger Co. (NYSE:KR - Free Report) during the 1st quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund bought 10,027 shares of the company's stock, valued at approximately $679,000.

Other institutional investors and hedge funds have also bought and sold shares of the company. Transce3nd LLC acquired a new stake in Kroger during the 4th quarter valued at approximately $28,000. Garde Capital Inc. acquired a new position in shares of Kroger in the 1st quarter valued at $31,000. Aster Capital Management DIFC Ltd acquired a new position in shares of Kroger in the 4th quarter valued at $34,000. Sound Income Strategies LLC lifted its stake in shares of Kroger by 46.7% in the 1st quarter. Sound Income Strategies LLC now owns 550 shares of the company's stock valued at $37,000 after purchasing an additional 175 shares during the period. Finally, Accredited Wealth Management LLC acquired a new position in shares of Kroger in the 4th quarter valued at $49,000. 80.93% of the stock is currently owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

Several equities analysts recently issued reports on KR shares. UBS Group reiterated a "neutral" rating and issued a $74.00 target price (up from $66.00) on shares of Kroger in a research note on Monday, June 23rd. Wall Street Zen raised shares of Kroger from a "buy" rating to a "strong-buy" rating in a report on Friday, July 18th. Melius Research raised shares of Kroger from a "strong sell" rating to a "hold" rating in a report on Tuesday, May 20th. Barclays initiated coverage on shares of Kroger in a report on Monday, July 21st. They issued an "equal weight" rating and a $75.00 price target for the company. Finally, Deutsche Bank Aktiengesellschaft boosted their price target on shares of Kroger from $57.00 to $67.00 and gave the stock a "hold" rating in a report on Monday, June 23rd. Ten analysts have rated the stock with a hold rating, eight have given a buy rating and one has issued a strong buy rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $70.16.

Kroger Stock Down 0.0%

KR stock traded down $0.01 during midday trading on Wednesday, reaching $69.29. 5,296,880 shares of the company were exchanged, compared to its average volume of 7,101,950. The company has a debt-to-equity ratio of 1.92, a quick ratio of 0.53 and a current ratio of 0.95. The company has a market cap of $45.79 billion, a price-to-earnings ratio of 18.88, a price-to-earnings-growth ratio of 2.21 and a beta of 0.59. The stock's 50-day simple moving average is $69.31 and its 200 day simple moving average is $67.19. The Kroger Co. has a 1-year low of $50.69 and a 1-year high of $74.11.

Kroger (NYSE:KR - Get Free Report) last announced its 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 1.76% and a return on equity of 30.01%. The business had revenue of $45.12 billion for the quarter, compared to analyst estimates of $45.35 billion. During the same period last year, the firm posted $1.43 earnings per share. The company's revenue for the quarter was down .3% compared to the same quarter last year. On average, equities analysts forecast that The Kroger Co. will post 4.44 earnings per share for the current year.

Kroger Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, September 1st. Shareholders of record on Friday, August 15th will be issued a $0.35 dividend. The ex-dividend date is Friday, August 15th. This represents a $1.40 dividend on an annualized basis and a yield of 2.02%. This is an increase from Kroger's previous quarterly dividend of $0.32. Kroger's dividend payout ratio (DPR) is 34.88%.

Insider Buying and Selling

In other Kroger news, VP Carin L. Fike sold 16,475 shares of the firm's stock in a transaction on 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 completion of the sale, the vice president owned 49,360 shares of the company's stock, valued at approximately $3,642,274.40. This trade represents a 25.02% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Clyde R. Moore sold 3,810 shares of the firm's stock in a transaction on Wednesday, July 16th. The shares were sold at an average price of $71.61, for a total value of $272,834.10. Following the completion of the sale, the director directly owned 85,850 shares of the company's stock, valued at approximately $6,147,718.50. This trade represents a 4.25% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 198,948 shares of company stock valued at $14,422,926 in the last quarter. Corporate insiders own 0.44% of the company's stock.

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.