Kroger Sees Unusually High Options Volume (NYSE:KR)

Key Points

• Kroger experienced an unusual surge in options trading, with 28,802 put options purchased on Tuesday, an increase of 130% compared to the average daily volume.
• Insider transactions revealed that executives sold over 198,948 shares of Kroger stock recently, indicating a significant reduction in their ownership stakes in the company.
• Kroger announced a quarterly dividend increase to $0.35 per share, up from $0.32, signaling confidence in maintaining shareholder returns.

The Kroger Co. (NYSE:KR - Get Free Report) was the recipient of some unusual options trading activity on Tuesday. Traders purchased 28,802 put options on the company. Thisrepresentsanincreaseof130% compared to the average daily volume of 12,511 put options.

Insider Transactions at Kroger

In other news, EVP Mary Ellen Adcock sold 34,250 shares of the firm's 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 of the company's stock, valued at approximately $13,127,098.68. This trade represents a 15.66% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, EVP Timothy A. Massa sold 8,415 shares of Kroger stock in a transaction dated Monday, June 23rd. The stock was sold at an average price of $74.00, for a total value of $622,710.00. Following the sale, the executive vice president directly owned 118,761 shares in the company, valued at approximately $8,788,314. This trade represents a 6.62% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders sold 198,948 shares of company stock valued at $14,422,926. Insiders own 0.44% of the company's stock.

Institutional Investors Weigh In On Kroger

Several large investors have recently modified their holdings of the stock. Accent Capital Management LLC bought a new position in Kroger in the 1st quarter worth approximately $25,000. SOA Wealth Advisors LLC. boosted its holdings in Kroger by 6,840.0% in the 2nd quarter. SOA Wealth Advisors LLC. now owns 347 shares of the company's stock worth $25,000 after buying an additional 342 shares during the period. Transce3nd LLC bought a new position in Kroger in the 4th quarter worth approximately $28,000. Atlantic Union Bankshares Corp bought a new position in Kroger in the 2nd quarter worth approximately $28,000. Finally, Rossby Financial LCC bought a new position in Kroger in the 2nd quarter worth approximately $29,000. Hedge funds and other institutional investors own 80.93% of the company's stock.

Wall Street Analyst Weigh In

Several brokerages have commented on KR. Jefferies Financial Group set a $83.00 target price on shares of Kroger and gave the company a "buy" rating in a research report on Monday, June 23rd. Guggenheim increased their target price on Kroger from $73.00 to $78.00 and gave the stock a "buy" rating in a report on Monday, June 23rd. Evercore ISI raised their price objective on Kroger from $80.00 to $82.00 and gave the company an "outperform" rating in a report on Tuesday, August 12th. UBS Group reiterated a "neutral" rating and set a $74.00 price target (up previously from $66.00) on shares of Kroger in a report on Monday, June 23rd. Finally, Telsey Advisory Group restated 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. Eight research analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the stock. According to MarketBeat, the company presently has an average rating of "Hold" and an average price target of $70.53.

Kroger Stock Up 1.4%

Shares of KR traded up $0.9590 on Tuesday, reaching $70.6990. The company's stock had a trading volume of 6,506,816 shares, compared to its average volume of 7,105,514. The company has a current ratio of 0.95, a quick ratio of 0.53 and a debt-to-equity ratio of 1.92. Kroger has a twelve month low of $50.69 and a twelve month high of $74.90. The stock has a market capitalization of $46.72 billion, a PE ratio of 19.26, a PEG ratio of 2.22 and a beta of 0.59. The firm has a fifty day moving average of $70.49 and a 200-day moving average of $68.43.

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

Kroger Increases Dividend

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

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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