Guggenheim Forecasts Strong Price Appreciation for Kroger (NYSE:KR) Stock

Kroger (NYSE:KR) had its target price boosted by investment analysts at Guggenheim from $71.00 to $73.00 in a research note issued on Thursday,Benzinga reports. The brokerage presently has a “buy” rating on the stock. Guggenheim’s price objective points to a potential upside of 8.87% from the stock’s previous close.

Other research analysts also recently issued reports about the stock. Morgan Stanley lifted their target price on shares of Kroger from $62.00 to $65.00 and gave the stock an “equal weight” rating in a research note on Tuesday, January 21st. Melius cut shares of Kroger from a “hold” rating to a “sell” rating and set a $58.00 price objective on the stock. in a research report on Tuesday. UBS Group upped their price objective on shares of Kroger from $63.00 to $66.00 and gave the company a “neutral” rating in a research note on Thursday, December 12th. Roth Capital set a $58.00 target price on Kroger in a research note on Thursday, March 6th. Finally, The Goldman Sachs Group reaffirmed a “buy” rating and set a $70.00 price target on shares of Kroger in a research report on Tuesday, February 4th. Two equities research analysts have rated the stock with a sell rating, six have issued a hold rating, ten have issued a buy rating and one has given a strong buy rating to the company’s stock. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $66.50.

Kroger Stock Performance

Kroger stock opened at $67.05 on Thursday. The firm has a fifty day simple moving average of $64.99 and a two-hundred day simple moving average of $60.79. The company has a quick ratio of 1.07, a current ratio of 1.54 and a debt-to-equity ratio of 1.74. Kroger has a twelve month low of $49.04 and a twelve month high of $71.93. The company has a market capitalization of $48.52 billion, a PE ratio of 17.74, a P/E/G ratio of 2.85 and a beta of 0.60.

Kroger (NYSE:KR) last issued its earnings results on Thursday, March 6th. The company reported $1.14 earnings per share for the quarter, beating the consensus estimate of $1.09 by $0.05. The company had revenue of $34.31 billion during the quarter, compared to analysts’ expectations of $34.96 billion. Kroger had a return on equity of 27.73% and a net margin of 1.85%. Research analysts expect that Kroger will post 4.44 EPS for the current year.

Kroger declared that its board has initiated a stock buyback plan on Wednesday, December 11th that allows the company to buyback $7.50 billion in shares. This buyback authorization allows the company to purchase up to 16.9% of its stock through open market purchases. Stock buyback plans are typically a sign that the company’s board believes its shares are undervalued.

Insider Transactions at Kroger

In other Kroger news, VP Brian W. Nichols sold 1,300 shares of Kroger stock in a transaction dated Thursday, March 13th. The shares were sold at an average price of $66.71, for a total value of $86,723.00. Following the completion of the transaction, the vice president now directly owns 12,090 shares of the company’s stock, valued at approximately $806,523.90. The trade was a 9.71 % decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, VP Carin L. Fike sold 5,541 shares of the company’s stock in a transaction that occurred on Thursday, April 3rd. The stock was sold at an average price of $70.79, for a total transaction of $392,247.39. Following the completion of the transaction, the vice president now owns 3,480 shares in the company, valued at approximately $246,349.20. This represents a 61.42 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 228,785 shares of company stock valued at $15,393,666 in the last ninety days. 1.40% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of the business. Millstone Evans Group LLC purchased a new position in shares of Kroger during the fourth quarter valued at approximately $25,000. Whipplewood Advisors LLC bought a new stake in Kroger in the 4th quarter worth approximately $26,000. TCTC Holdings LLC purchased a new stake in Kroger during the 4th quarter valued at $27,000. Transce3nd LLC purchased a new position in shares of Kroger in the 4th quarter worth $28,000. Finally, Lee Danner & Bass Inc. purchased a new position in shares of Kroger in the 4th quarter worth $32,000. Hedge funds and other institutional investors own 80.93% of the company’s stock.

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.