Gotham Asset Management LLC Grows Holdings in The Kroger Co. $KR

Key Points

• Gotham Asset Management LLC increased its stake in The Kroger Co. by 21.7%, acquiring an additional 31,366 shares, bringing their total holdings to 175,694 shares valued at approximately $11.89 million.
• Kroger recently announced a quarterly dividend increase to $0.35 per share, up from $0.32, reflecting a dividend yield of 2.1% and a payout ratio of 38.15%.
• Analysts have provided mixed ratings for Kroger, with a consensus recommendation of "Hold" and an average price target of $70.58, while the stock was trading around $67.74.

Gotham Asset Management LLC boosted its stake in shares of The Kroger Co. (NYSE:KR - Free Report) by 21.7% during the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund owned 175,694 shares of the company's stock after purchasing an additional 31,366 shares during the period. Gotham Asset Management LLC's holdings in Kroger were worth $11,893,000 at the end of the most recent reporting period.

Several other large investors also recently bought and sold shares of the stock. Accent Capital Management LLC acquired a new stake in shares of Kroger in the first quarter worth $25,000. Garde Capital Inc. purchased a new stake in Kroger during the first quarter worth $31,000. Capital Analysts LLC acquired a new stake in Kroger during the first quarter valued at $36,000. Sound Income Strategies LLC grew its position in Kroger by 46.7% during the first quarter. Sound Income Strategies LLC now owns 550 shares of the company's stock valued at $37,000 after buying an additional 175 shares during the period. Finally, GKV Capital Management Co. Inc. acquired a new stake in Kroger during the first quarter valued at $38,000. Hedge funds and other institutional investors own 80.93% of the company's stock.

Insider Activity at Kroger

In other news, Director Clyde R. Moore sold 26,814 shares of the company's stock in a transaction 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 completion of the transaction, the director owned 99,143 shares in the company, valued at approximately $6,989,581.50. This represents a 21.29% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, EVP Gabriel Arreaga sold 37,960 shares of the company's stock in a transaction on Wednesday, June 25th. The shares were 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. The trade was a 33.54% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 198,948 shares of company stock worth $14,422,926 over the last ninety days. 0.44% of the stock is currently owned by insiders.

Wall Street Analysts Forecast Growth

Several brokerages have recently issued reports on KR. JPMorgan Chase & Co. reiterated 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. Barclays began coverage on shares of Kroger in a research note on Monday, July 21st. They issued an "equal weight" rating and a $75.00 price target on the stock. Evercore ISI raised their price target on shares of Kroger from $80.00 to $82.00 and gave the stock an "outperform" rating in a research note on Tuesday, August 12th. Deutsche Bank Aktiengesellschaft lifted their target price on shares of Kroger from $57.00 to $67.00 and gave the stock a "hold" rating in a research note 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 note on Monday, June 23rd. Seven analysts have rated the stock with a Buy rating and twelve have issued a Hold rating to the company. According to data from MarketBeat, Kroger has a consensus rating of "Hold" and an average target price of $70.58.

Kroger Stock Up 0.2%

KR traded up $0.16 during trading hours on Thursday, hitting $67.19. 10,640,866 shares of the company's stock were exchanged, compared to its average volume of 7,099,360. The Kroger Co. has a 12-month low of $51.52 and a 12-month high of $74.90. The firm has a 50 day moving average of $70.46 and a 200 day moving average of $68.82. The firm has a market cap of $44.41 billion, a P/E ratio of 18.39, a price-to-earnings-growth ratio of 2.16 and a beta of 0.59. The company has a current ratio of 0.95, a quick ratio of 0.53 and a debt-to-equity ratio of 1.92.

Kroger (NYSE:KR - Get Free Report) last announced its earnings results on Thursday, September 11th. The company reported $1.04 earnings per share for the quarter, topping the consensus estimate of $1.00 by $0.04. Kroger had a net margin of 1.89% and a return on equity of 34.71%. During the same quarter in the prior year, the company posted $0.93 EPS. The business's revenue was up .1% compared to the same quarter last year. Kroger has set its FY 2025 guidance at 4.700-4.800 EPS. Analysts predict that The Kroger Co. will post 4.44 EPS for the current fiscal year.

Kroger Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Monday, September 1st. Shareholders of record on Friday, August 15th were issued a dividend of $0.35 per share. This is a boost 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 dividend payout ratio (DPR) is presently 38.15%.

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.