Aperture Investors LLC Raises Holdings in The Kroger Co. $KR

Key Points

• Aperture Investors LLC increased its stake in The Kroger Co. by 47.8%, acquiring an additional 15,117 shares, bringing its total holdings to 46,723 shares valued at approximately $3.16 million.
• Several brokerages have adjusted their price targets for Kroger, with UBS Group setting a target of $74.00 and Jefferies Financial Group recommending a buy rating with a target of $83.00.
• Kroger recently declared a quarterly dividend of $0.35, an increase from the previous dividend of $0.32, representing an annualized yield of 2.1%.

Aperture Investors LLC grew its position in shares of The Kroger Co. (NYSE:KR - Free Report) by 47.8% during the first quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 46,723 shares of the company's stock after purchasing an additional 15,117 shares during the quarter. Aperture Investors LLC's holdings in Kroger were worth $3,163,000 as of its most recent SEC filing.

A number of other hedge funds have also recently made changes to their positions in the company. Accent Capital Management LLC acquired a new position in shares of Kroger in the first quarter worth approximately $25,000. Garde Capital Inc. acquired a new position in shares of Kroger in the first quarter worth approximately $31,000. Capital Analysts LLC acquired a new position in shares of Kroger in the first quarter worth approximately $36,000. Sound Income Strategies LLC lifted its stake in shares of Kroger by 46.7% in the first quarter. Sound Income Strategies LLC now owns 550 shares of the company's stock worth $37,000 after acquiring an additional 175 shares during the period. Finally, GKV Capital Management Co. Inc. acquired a new position in shares of Kroger in the first quarter worth approximately $38,000. 80.93% of the stock is owned by institutional investors and hedge funds.

Kroger Stock Up 0.5%

Shares of NYSE KR traded up $0.37 during midday trading on Friday, hitting $67.83. 5,420,800 shares of the stock traded hands, compared to its average volume of 6,593,639. The company has a market cap of $44.83 billion, a PE ratio of 18.48, a P/E/G ratio of 2.16 and a beta of 0.60. The Kroger Co. has a one year low of $50.69 and a one year high of $74.90. The business has a 50 day moving average price of $71.10 and a two-hundred day moving average price of $68.72. The company has a debt-to-equity ratio of 1.92, a quick ratio of 0.53 and a current ratio of 0.95.

Kroger (NYSE:KR - Get Free Report) last released its quarterly earnings data on Friday, June 20th. The company reported $1.49 EPS for the quarter, beating the consensus estimate of $1.45 by $0.04. The firm 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 company's quarterly revenue was down .3% on a year-over-year basis. During the same quarter in the previous year, the company posted $1.43 earnings per share. Kroger has set its FY 2025 guidance at 4.600-4.800 EPS. On average, equities analysts predict that The Kroger Co. will post 4.44 EPS for the current year.

Kroger Increases Dividend

The business also recently announced 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 is a positive change from Kroger's previous quarterly dividend of $0.32. This represents a $1.40 annualized dividend and a dividend yield of 2.1%. Kroger's payout ratio is presently 38.15%.

Insider Activity at Kroger

In related news, EVP Gabriel Arreaga sold 37,960 shares of Kroger stock in a transaction that occurred on 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 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 sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, Director Clyde R. Moore sold 26,814 shares of Kroger stock in a transaction that occurred on Friday, July 11th. The shares were sold at an average price of $70.50, for a total value of $1,890,387.00. Following the transaction, the director directly owned 99,143 shares in the company, valued at approximately $6,989,581.50. The trade was a 21.29% 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 over the last 90 days. Corporate insiders own 0.44% of the company's stock.

Wall Street Analyst Weigh In

A number of equities analysts recently commented on KR shares. Evercore ISI lifted their price objective on Kroger from $80.00 to $82.00 and gave the stock an "outperform" rating in a research note on Tuesday, August 12th. Melius upgraded Kroger from a "sell" rating to a "hold" rating and set a $70.00 target price for the company in a report on Tuesday, May 20th. Deutsche Bank Aktiengesellschaft lifted their target price on Kroger from $57.00 to $67.00 and gave the stock a "hold" rating in a report on Monday, June 23rd. JPMorgan Chase & Co. reiterated a "neutral" rating and issued a $75.00 target price (down from $82.00) on shares of Kroger in a report on Wednesday, August 20th. Finally, UBS Group reiterated a "neutral" rating and issued a $74.00 target price (up from $66.00) on shares of Kroger in a report on Monday, June 23rd. 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 a consensus 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.