Kroger (NYSE:KR) Reaches New 52-Week High on Better-Than-Expected Earnings

The Kroger Co. (NYSE:KR - Get Free Report)'s stock price hit a new 52-week high during mid-day trading on Monday following a stronger than expected earnings report. The stock traded as high as $74.11 and last traded at $73.72, with a volume of 2446107 shares trading hands. The stock had previously closed at $71.97.

The company reported $1.49 EPS for the quarter, beating analysts' consensus estimates of $1.45 by $0.04. Kroger had a net margin of 1.76% and a return on equity of 30.01%. The business had revenue of $45.12 billion for the quarter, compared to analyst estimates of $45.35 billion. During the same quarter in the prior year, the business earned $1.43 EPS. Kroger's quarterly revenue was down .3% on a year-over-year basis.

Wall Street Analyst Weigh In

A number of brokerages have issued reports on KR. Melius upgraded shares of Kroger from a "sell" rating to a "hold" rating and set a $70.00 target price on the stock in a research report on Tuesday, May 20th. Deutsche Bank Aktiengesellschaft upped their price objective on shares of Kroger from $57.00 to $67.00 and gave the stock a "hold" rating in a research report on Monday. JPMorgan Chase & Co. boosted their price objective on shares of Kroger from $72.00 to $82.00 and gave the company an "overweight" rating in a research report on Thursday, May 1st. Evercore ISI reduced their price objective on Kroger from $76.00 to $75.00 and set an "outperform" rating on the stock in a research note on Tuesday, June 17th. Finally, UBS Group upped their price objective on shares of Kroger from $66.00 to $74.00 and gave the stock a "neutral" rating in a research report on Monday. Nine investment analysts have rated the stock with a hold rating and ten have given a buy rating to the company's stock. According to MarketBeat, Kroger currently has a consensus rating of "Moderate Buy" and an average target price of $69.47.

Insider Activity

In related news, EVP Christine S. Wheatley sold 30,000 shares of the company's stock in a transaction dated Friday, April 4th. The shares were sold at an average price of $69.44, for a total value of $2,083,200.00. Following the sale, the executive vice president now owns 127,737 shares in the company, valued at $8,870,057.28. This represents a 19.02% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, VP Brian W. Nichols sold 1,000 shares of the stock in a transaction that occurred on Monday, April 21st. The stock was sold at an average price of $72.03, for a total value of $72,030.00. Following the completion of the sale, the vice president now directly owns 10,473 shares of the company's stock, valued at approximately $754,370.19. This trade represents a 8.72% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 111,679 shares of company stock worth $7,865,706. Company insiders own 0.44% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in KR. Millstone Evans Group LLC bought a new stake in Kroger during the 4th quarter valued at $25,000. Accent Capital Management LLC bought a new position in Kroger in the 1st quarter worth about $25,000. Whipplewood Advisors LLC bought a new stake in shares of Kroger during the fourth quarter valued at about $26,000. TCTC Holdings LLC purchased a new stake in shares of Kroger in the fourth quarter worth about $27,000. Finally, Transce3nd LLC bought a new position in shares of Kroger in the fourth quarter valued at approximately $28,000. Hedge funds and other institutional investors own 80.93% of the company's stock.

Kroger Trading Up 2.5%

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 cap of $48.75 billion, a PE ratio of 20.11, a PEG ratio of 2.15 and a beta of 0.59. The firm's 50 day moving average is $68.89 and its 200 day moving average is $65.27.

Kroger Company 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.

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