Kroger (NYSE:KR) Hits New 1-Year High - Time to Buy?

Key Points

• Kroger's stock reached a new 52-week high of $74.15, closing at $73.95 with a trading volume of over 2.4 million shares.
• Analysts have recently provided varied ratings on Kroger, with ten holding a "hold" rating and nine giving it a "buy" rating, leading to an average price target of $70.16.
• The company has announced a dividend increase, raising it from $0.32 to $0.35 per share, representing an annualized dividend of $1.40 and a yield of 1.9%.

The Kroger Co. (NYSE:KR - Get Free Report)'s stock price hit a new 52-week high during trading on Thursday . The company traded as high as $74.15 and last traded at $73.95, with a volume of 2402636 shares trading hands. The stock had previously closed at $73.73.

Analyst Ratings Changes

Several equities research analysts have recently issued reports on the company. Telsey Advisory Group restated an "outperform" rating and set a $82.00 price objective (up previously from $73.00) on shares of Kroger in a report on Friday, June 20th. Melius Research upgraded Kroger from a "strong sell" rating to a "hold" rating in a report on Tuesday, May 20th. Jefferies Financial Group set a $83.00 price objective on Kroger and gave the stock a "buy" rating in a report on Monday, June 23rd. Guggenheim raised their price objective on Kroger from $73.00 to $78.00 and gave the stock a "buy" rating in a report on Monday, June 23rd. Finally, UBS Group restated a "neutral" rating and set a $74.00 price objective (up previously from $66.00) on shares of Kroger in a report on Monday, June 23rd. Ten analysts have rated the stock with a hold rating and nine have given a buy rating to the company's stock. According to MarketBeat.com, the company presently has an average rating of "Hold" and a consensus price target of $70.16.

Kroger Stock Up 0.0%

The firm has a 50-day simple moving average of $69.68 and a 200 day simple moving average of $67.64. The company has a debt-to-equity ratio of 1.92, a current ratio of 0.95 and a quick ratio of 0.53. The company has a market capitalization of $48.74 billion, a PE ratio of 20.09, a price-to-earnings-growth ratio of 2.29 and a beta of 0.59.

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 return on equity of 34.71% and a net margin of 1.89%. The business had revenue of $45.12 billion for the quarter, compared to analyst estimates of $45.35 billion. During the same period in the previous year, the company earned $1.43 earnings per share. The company's revenue for the quarter was down .3% compared to the same quarter last year. On average, research analysts predict that The Kroger Co. will post 4.44 EPS for the current fiscal year.

Kroger Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, September 1st. Stockholders 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 dividend on an annualized basis and a dividend yield of 1.9%. Kroger's dividend payout ratio is presently 38.15%.

Insider Buying and Selling at Kroger

In other news, Director Clyde R. Moore sold 3,810 shares of Kroger stock in a transaction dated Wednesday, July 16th. The stock was sold at an average price of $71.61, for a total transaction of $272,834.10. Following the sale, the director directly owned 85,850 shares of the company's stock, valued at approximately $6,147,718.50. The trade was a 4.25% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP Mary Ellen Adcock sold 34,250 shares of Kroger stock in a transaction dated Friday, June 27th. The stock was sold at an average price of $71.16, for a total value of $2,437,230.00. Following the sale, the executive vice president directly owned 184,473 shares in the company, valued at approximately $13,127,098.68. The trade was a 15.66% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders sold 198,948 shares of company stock valued at $14,422,926. Company insiders own 0.44% of the company's stock.

Institutional Trading of Kroger

Hedge funds and other institutional investors have recently bought and sold shares of the company. IFC Advisors LLC boosted its holdings in Kroger by 1.7% during the first quarter. IFC Advisors LLC now owns 8,642 shares of the company's stock valued at $585,000 after acquiring an additional 142 shares during the period. Wealthcare Advisory Partners LLC boosted its holdings in Kroger by 1.9% during the second quarter. Wealthcare Advisory Partners LLC now owns 8,025 shares of the company's stock valued at $576,000 after acquiring an additional 146 shares during the period. PDS Planning Inc boosted its holdings in Kroger by 2.0% during the second quarter. PDS Planning Inc now owns 7,715 shares of the company's stock valued at $553,000 after acquiring an additional 152 shares during the period. Rothschild Investment LLC boosted its holdings in Kroger by 2.0% during the first quarter. Rothschild Investment LLC now owns 8,049 shares of the company's stock valued at $545,000 after acquiring an additional 155 shares during the period. Finally, Cairn Investment Group Inc. boosted its holdings in Kroger by 0.3% during the second quarter. Cairn Investment Group Inc. now owns 58,902 shares of the company's stock valued at $4,225,000 after acquiring an additional 163 shares during the period. 80.93% of the stock is owned by institutional investors.

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.

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