USS Investment Management Ltd Sells 38,500 Shares of The Kroger Co. $KR

Key Points

• USS Investment Management Ltd has reduced its stake in The Kroger Co. by 27.4%, now holding 102,241 shares valued at approximately $6.92 million.
• Kroger's quarterly earnings exceeded expectations, reporting $1.49 EPS against a consensus estimate of $1.45 EPS, despite a slight decline in year-over-year revenue.
• The company announced an increase in its quarterly dividend to $0.35, reflecting an annualized yield of 2.1% and showcasing a commitment to returning value to shareholders.

USS Investment Management Ltd trimmed its holdings in The Kroger Co. (NYSE:KR - Free Report) by 27.4% in the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund owned 102,241 shares of the company's stock after selling 38,500 shares during the quarter. USS Investment Management Ltd's holdings in Kroger were worth $6,923,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds and other institutional investors also recently made changes to their positions in the company. Accent Capital Management LLC acquired a new position in Kroger during the 1st quarter worth $25,000. Garde Capital Inc. acquired a new position in Kroger during the 1st quarter worth about $31,000. Capital Analysts LLC bought a new stake in shares of Kroger during the first quarter worth $36,000. Sound Income Strategies LLC boosted its stake 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 acquiring an additional 175 shares during the last quarter. Finally, GKV Capital Management Co. Inc. bought a new stake in shares of Kroger in the 1st quarter valued at about $38,000. 80.93% of the stock is owned by hedge funds and other institutional investors.

Insiders Place Their Bets

In other Kroger news, EVP Gabriel Arreaga sold 37,960 shares of the 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 transaction, 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 filing with the SEC, which is available through the SEC website. Also, EVP Mary Ellen Adcock sold 34,250 shares of the business's stock in a transaction dated Friday, June 27th. The stock was sold at an average price of $71.16, for a total transaction of $2,437,230.00. Following the transaction, the executive vice president owned 184,473 shares in the company, valued at approximately $13,127,098.68. The trade was a 15.66% decrease in their position. The disclosure for this sale can be found here. Insiders sold 198,948 shares of company stock valued at $14,422,926 over the last ninety days. Insiders own 0.44% of the company's stock.

Kroger Price Performance

KR stock traded down $0.61 during midday trading on Wednesday, hitting $67.03. 9,296,857 shares of the stock were exchanged, compared to its average volume of 6,658,168. The stock's 50-day moving average price is $70.46 and its 200-day moving average price is $68.82. 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 stock has a market cap of $44.30 billion, a price-to-earnings ratio of 18.26, a PEG ratio of 2.16 and a beta of 0.59. The Kroger Co. has a fifty-two week low of $50.69 and a fifty-two week high of $74.90.

Kroger (NYSE:KR - Get Free Report) last issued its earnings results on Friday, June 20th. The company reported $1.49 EPS for the quarter, beating analysts' consensus estimates of $1.45 by $0.04. The business had revenue of $45.12 billion for the quarter, compared to the consensus estimate of $45.35 billion. Kroger had a net margin of 1.89% and a return on equity of 34.71%. The business's revenue for the quarter was down .3% compared to the same quarter last year. During the same quarter last year, the firm posted $1.43 EPS. Kroger has set its FY 2025 guidance at 4.600-4.800 EPS. Research analysts predict that The Kroger Co. will post 4.44 earnings per share for the current year.

Kroger Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Monday, September 1st. Stockholders of record on Friday, August 15th were issued a dividend of $0.35 per share. This is an increase from Kroger's previous quarterly dividend of $0.32. This represents a $1.40 dividend on an annualized basis and a dividend yield of 2.1%. The ex-dividend date was Friday, August 15th. Kroger's dividend payout ratio (DPR) is presently 38.15%.

Wall Street Analyst Weigh In

Several equities research analysts have issued reports on KR shares. Guggenheim lifted their price target on shares of Kroger from $73.00 to $78.00 and gave the company a "buy" rating in a research note on Monday, June 23rd. Jefferies Financial Group set a $83.00 target price on Kroger and gave the stock a "buy" rating in a research note on Monday, June 23rd. Barclays started 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. Wall Street Zen downgraded shares of Kroger from a "strong-buy" rating to a "buy" rating in a research report on Saturday, August 2nd. Finally, Morgan Stanley set a $76.00 target price on shares of Kroger and gave the company an "equal weight" rating in a research report on Monday, June 23rd. Seven analysts have rated the stock with a Buy rating and twelve have given a Hold rating to the stock. Based on data from MarketBeat.com, Kroger currently has a consensus rating of "Hold" and an average target price 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.