Kroger (NYSE:KR) Shares Gap Down - Time to Sell?

Key Points

• Kroger's stock price gapped down from a previous close of $73.55 to an opening price of $70.60, last trading at $70.14 with significant trading volume of 4,674,310 shares.
• Wall Street analysts generally maintain a cautious outlook, with a consensus rating of "Hold" and a price target averaging around $70.53, while some analysts have set higher targets between $75.00 and $83.00.
• The company recently increased its quarterly dividend to $0.35 per share, representing a yield of 2.0%, which is a rise from the previous $0.32 dividend.

The Kroger Co. (NYSE:KR - Get Free Report) gapped down prior to trading on Wednesday . The stock had previously closed at $73.55, but opened at $70.60. Kroger shares last traded at $70.14, with a volume of 4,674,310 shares changing hands.

Wall Street Analysts Forecast Growth

Several equities research analysts have commented on the stock. Barclays began coverage on shares of Kroger in a report on Monday, July 21st. They issued an "equal weight" rating and a $75.00 price target on the stock. Melius upgraded shares of Kroger from a "sell" rating to a "hold" rating and set a $70.00 price objective for the company in a report on Tuesday, May 20th. Deutsche Bank Aktiengesellschaft lifted their target price on shares of Kroger from $57.00 to $67.00 and gave the company a "hold" rating in a report on Monday, June 23rd. Guggenheim boosted their price target on shares of Kroger from $73.00 to $78.00 and gave the stock a "buy" rating in a research note on Monday, June 23rd. Finally, Telsey Advisory Group reaffirmed an "outperform" rating and set a $82.00 price objective (up from $73.00) on shares of Kroger in a research report on Friday, June 20th. Ten analysts have rated the stock with a hold rating and nine have issued a buy rating to the company. Based on data from MarketBeat.com, Kroger presently has an average rating of "Hold" and a consensus target price of $70.53.

Kroger Stock Performance

The company has a fifty day moving average price of $70.40 and a two-hundred day moving average price of $68.37. 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 $46.04 billion, a P/E ratio of 18.98, a PEG ratio of 2.22 and a beta of 0.59.

Kroger (NYSE:KR - Get Free Report) last announced its quarterly earnings data on Friday, June 20th. The company reported $1.49 earnings per share (EPS) for the quarter, beating 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 firm had revenue of $45.12 billion during the quarter, compared to the consensus estimate of $45.35 billion. During the same quarter in the prior year, the company earned $1.43 EPS. The business's revenue for the quarter was down .3% on a year-over-year basis. Equities analysts forecast that The Kroger Co. will post 4.44 earnings per share for the current fiscal year.

Kroger Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Monday, September 1st. Shareholders of record on Friday, August 15th will be given a dividend of $0.35 per share. This represents a $1.40 dividend on an annualized basis and a yield of 2.0%. This is a boost from Kroger's previous quarterly dividend of $0.32. The ex-dividend date is Friday, August 15th. Kroger's dividend payout ratio (DPR) is currently 38.15%.

Insider Activity

In related news, Director Clyde R. Moore sold 26,814 shares of the business's stock in a transaction on Friday, July 11th. The stock was sold at an average price of $70.50, for a total transaction of $1,890,387.00. Following the transaction, the director directly owned 99,143 shares in the company, valued at $6,989,581.50. The trade was a 21.29% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, EVP Mary Ellen Adcock sold 34,250 shares of the business's stock in a transaction dated Friday, June 27th. The shares were sold at an average price of $71.16, for a total value of $2,437,230.00. Following the completion of the transaction, the executive vice president directly owned 184,473 shares of the company's stock, valued at approximately $13,127,098.68. This trade represents a 15.66% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 198,948 shares of company stock valued at $14,422,926. 0.44% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Kroger

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. SOA Wealth Advisors LLC. boosted its position in Kroger by 6,840.0% during the 2nd quarter. SOA Wealth Advisors LLC. now owns 347 shares of the company's stock worth $25,000 after purchasing an additional 342 shares during the period. Accent Capital Management LLC purchased a new stake in Kroger during the 1st quarter worth $25,000. Atlantic Union Bankshares Corp purchased a new stake in Kroger during the 2nd quarter worth $28,000. Rossby Financial LCC purchased a new stake in Kroger during the 2nd quarter worth $29,000. Finally, Whipplewood Advisors LLC boosted its position in Kroger by 10,425.0% in the 2nd quarter. Whipplewood Advisors LLC now owns 421 shares of the company's stock valued at $30,000 after buying an additional 417 shares during the last quarter. Hedge funds and other institutional investors own 80.93% of the company's stock.

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.