Kroger (NYSE:KR) Sees Large Volume Increase – Still a Buy?

Shares of The Kroger Co. (NYSE:KR) saw strong trading volume on Friday . 8,043,115 shares traded hands during mid-day trading, an increase of 228% from the previous session’s volume of 2,452,587 shares.The stock last traded at $61.90 and had previously closed at $61.94.

Wall Street Analysts Forecast Growth

Several brokerages have weighed in on KR. Wells Fargo & Company boosted their price objective on Kroger from $70.00 to $73.00 and gave the stock an “overweight” rating in a research note on Thursday, December 12th. BMO Capital Markets boosted their target price on Kroger from $60.00 to $63.00 and gave the company a “market perform” rating in a research report on Thursday, December 12th. Bank of America raised their price target on shares of Kroger from $70.00 to $75.00 and gave the stock a “buy” rating in a research note on Friday, December 20th. JPMorgan Chase & Co. raised their price objective on Kroger from $59.00 to $69.00 and gave the stock an “overweight” rating in a report on Friday, December 6th. Finally, Guggenheim assumed coverage on Kroger in a research report on Thursday, December 19th. They set a “buy” rating and a $68.00 price target on the stock. Six equities research analysts have rated the stock with a hold rating, eight have assigned a buy rating and two have assigned a strong buy rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of $65.79.

Kroger Stock Down 0.4 %

The business has a 50 day moving average price of $59.78 and a 200 day moving average price of $55.85. The company has a quick ratio of 1.07, a current ratio of 1.54 and a debt-to-equity ratio of 1.74. The stock has a market cap of $44.65 billion, a PE ratio of 16.32, a P/E/G ratio of 0.97 and a beta of 0.48.

Kroger (NYSE:KR) last announced its quarterly earnings results on Thursday, December 5th. The company reported $0.98 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.97 by $0.01. The firm had revenue of $33.63 billion for the quarter, compared to the consensus estimate of $34.19 billion. Kroger had a net margin of 1.85% and a return on equity of 27.73%. The firm’s quarterly revenue was down 1.0% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.95 earnings per share. Equities research analysts expect that The Kroger Co. will post 4.43 EPS for the current fiscal year.

Kroger declared that its Board of Directors has approved a share repurchase plan on Wednesday, December 11th that permits the company to buyback $7.50 billion in shares. This buyback authorization permits the company to buy up to 16.9% of its shares through open market purchases. Shares buyback plans are usually a sign that the company’s board of directors believes its shares are undervalued.

Insider Buying and Selling

In other news, SVP Timothy A. Massa sold 25,889 shares of the stock in a transaction that occurred on Friday, December 6th. The shares were sold at an average price of $60.12, for a total value of $1,556,446.68. Following the completion of the sale, the senior vice president now owns 115,861 shares of the company’s stock, valued at $6,965,563.32. This represents a 18.26 % decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, VP Brian W. Nichols sold 6,922 shares of the firm’s stock in a transaction on Monday, October 7th. The stock was sold at an average price of $55.80, for a total value of $386,247.60. Following the sale, the vice president now directly owns 14,063 shares of the company’s stock, valued at approximately $784,715.40. This trade represents a 32.99 % decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 202,370 shares of company stock worth $12,530,170. 1.40% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Kroger

Institutional investors and hedge funds have recently modified their holdings of the company. Commonwealth Equity Services LLC grew its position in shares of Kroger by 27.3% during the second quarter. Commonwealth Equity Services LLC now owns 260,439 shares of the company’s stock worth $13,004,000 after buying an additional 55,868 shares in the last quarter. Aptus Capital Advisors LLC raised its holdings in shares of Kroger by 10.6% in the 2nd quarter. Aptus Capital Advisors LLC now owns 4,998 shares of the company’s stock valued at $249,000 after purchasing an additional 477 shares in the last quarter. Rhumbline Advisers lifted its position in shares of Kroger by 1.1% during the 2nd quarter. Rhumbline Advisers now owns 1,411,568 shares of the company’s stock worth $70,479,000 after purchasing an additional 15,344 shares during the last quarter. TIAA Trust National Association grew its stake in shares of Kroger by 6.8% during the second quarter. TIAA Trust National Association now owns 8,979 shares of the company’s stock worth $448,000 after purchasing an additional 572 shares in the last quarter. Finally, Oregon Public Employees Retirement Fund increased its holdings in shares of Kroger by 1.6% in the 2nd quarter. Oregon Public Employees Retirement Fund now owns 57,520 shares of the company’s stock valued at $2,872,000 after acquiring an additional 910 shares during the last quarter. 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.