The Kroger Co. (NYSE:KR) Position Trimmed by Vestcor Inc

Key Points

• Vestcor Inc reduced its stake in Kroger by 7.7%, now holding 361,475 shares valued at approximately $24.5 million, making it the 21st largest holding in its portfolio.
• Kroger recently announced a dividend increase from $0.32 to $0.35 per share, reflecting a yield of 2.02% and a dividend payout ratio of 34.88%.
• Despite a quarterly revenue decline of 0.3% year-over-year, Kroger reported earnings per share of $1.49, exceeding analysts' expectations by $0.04.

Vestcor Inc lowered its holdings in shares of The Kroger Co. (NYSE:KR - Free Report) by 7.7% in the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 361,475 shares of the company's stock after selling 30,242 shares during the period. Kroger comprises 0.8% of Vestcor Inc's portfolio, making the stock its 21st largest holding. Vestcor Inc owned approximately 0.05% of Kroger worth $24,468,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also modified their holdings of KR. Transce3nd LLC purchased a new stake in shares of Kroger during the fourth quarter worth about $28,000. Garde Capital Inc. purchased a new stake in Kroger in the first quarter valued at approximately $31,000. Aster Capital Management DIFC Ltd purchased a new stake in Kroger in the fourth quarter valued at approximately $34,000. Sound Income Strategies LLC grew its holdings in Kroger by 46.7% in the first 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 purchased a new stake in Kroger in the fourth quarter valued at approximately $49,000. 80.93% of the stock is currently owned by hedge funds and other institutional investors.

Kroger Stock Up 1.9%

Shares of NYSE KR traded up $1.32 during trading on Friday, reaching $71.42. 6,887,648 shares of the stock were exchanged, compared to its average volume of 7,126,661. The business's 50-day moving average price is $69.36 and its 200 day moving average price is $67.28. The Kroger Co. has a twelve month low of $50.69 and a twelve month high of $74.11. The company has a quick ratio of 0.53, a current ratio of 0.95 and a debt-to-equity ratio of 1.92. The company has a market capitalization 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.

Kroger (NYSE:KR - Get Free Report) last posted its earnings results on Friday, June 20th. The company reported $1.49 EPS for the quarter, topping analysts' consensus estimates of $1.45 by $0.04. The business had revenue of $45.12 billion for the quarter, compared to analysts' expectations of $45.35 billion. Kroger had a net margin of 1.76% and a return on equity of 30.01%. The business's revenue for the quarter was down .3% compared to the same quarter last year. During the same period in the previous year, the company posted $1.43 earnings per share. As a group, equities analysts forecast that The Kroger Co. will post 4.44 EPS for the current fiscal year.

Kroger Increases Dividend

The business also recently declared 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. This is a boost from Kroger's previous quarterly dividend of $0.32. This represents a $1.40 annualized dividend and a yield of 2.0%. The ex-dividend date of this dividend is Friday, August 15th. Kroger's dividend payout ratio is currently 38.15%.

Insider Transactions at Kroger

In related news, 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 value of $2,749,822.40. Following the sale, the executive vice president directly owned 75,218 shares of the company's stock, valued at $5,448,791.92. This represents a 33.54% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, VP Carin L. Fike sold 16,475 shares of the company's stock in a transaction on Monday, June 23rd. The shares were sold at an average price of $73.79, for a total transaction of $1,215,690.25. Following the completion of the sale, the vice president directly owned 49,360 shares in the company, valued at $3,642,274.40. This represents a 25.02% 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 valued at $14,422,926 over the last ninety days. 0.44% of the stock is currently owned by corporate insiders.

Wall Street Analysts Forecast Growth

KR has been the subject of a number of recent analyst reports. Melius Research upgraded shares of Kroger from a "strong sell" rating to a "hold" rating in a report on Tuesday, May 20th. Guggenheim boosted their target price on shares of Kroger from $73.00 to $78.00 and gave the company a "buy" rating in a report on Monday, June 23rd. Morgan Stanley set a $76.00 target price on shares of Kroger and gave the company an "equal weight" rating in a report on Monday, June 23rd. Jefferies Financial Group set a $83.00 target price on shares of Kroger and gave the company a "buy" rating in a report on Monday, June 23rd. Finally, UBS Group reiterated a "neutral" rating and set a $74.00 price objective (up from $66.00) on shares of Kroger in a research note on Monday, June 23rd. Ten equities research 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's stock. According to MarketBeat, Kroger currently has a consensus rating of "Moderate Buy" and an average price target of $70.16.

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.