The Kroger Co. (NYSE:KR) Sees Large Increase in Short Interest

The Kroger Co. (NYSE:KR) saw a significant increase in short interest in the month of December. As of December 31st, there was short interest totalling 48,590,000 shares, an increase of 307.0% from the December 15th total of 11,940,000 shares. Based on an average daily volume of 4,910,000 shares, the days-to-cover ratio is presently 9.9 days. Approximately 6.8% of the shares of the company are sold short.

Insider Activity

In other news, SVP Stuart Aitken sold 132,627 shares of the business’s stock in a transaction that occurred on Thursday, December 12th. The stock was sold at an average price of $63.18, for a total transaction of $8,379,373.86. Following the sale, the senior vice president now directly owns 217,523 shares in the company, valued at approximately $13,743,103.14. The trade was a 37.88 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, CFO Todd A. Foley sold 16,932 shares of the firm’s stock in a transaction on Thursday, December 19th. The stock was sold at an average price of $61.44, for a total value of $1,040,302.08. Following the completion of the transaction, the chief financial officer now directly owns 53,782 shares of the company’s stock, valued at approximately $3,304,366.08. This trade represents a 23.94 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 195,448 shares of company stock valued at $12,143,923 over the last 90 days. 1.40% of the stock is currently owned by company insiders.

Institutional Trading of Kroger

Several institutional investors and hedge funds have recently modified their holdings of KR. Altshuler Shaham Ltd acquired a new position in shares of Kroger in the second quarter valued at approximately $28,000. Northwest Investment Counselors LLC bought a new position in shares of Kroger during the third quarter valued at $34,000. Harbor Capital Advisors Inc. bought a new stake in shares of Kroger in the third quarter worth $40,000. Newbridge Financial Services Group Inc. increased its holdings in Kroger by 218.8% in the second quarter. Newbridge Financial Services Group Inc. now owns 714 shares of the company’s stock valued at $36,000 after purchasing an additional 490 shares during the period. Finally, Capital Performance Advisors LLP bought a new position in Kroger during the 3rd quarter worth $43,000. 80.93% of the stock is currently owned by institutional investors.

Analyst Upgrades and Downgrades

KR has been the topic of several analyst reports. Bank of America upped their price objective on Kroger from $70.00 to $75.00 and gave the company a “buy” rating in a research note on Friday, December 20th. Melius Research initiated coverage on shares of Kroger in a report on Monday, September 23rd. They set a “hold” rating and a $55.00 price target for the company. Morgan Stanley lifted their target price on shares of Kroger from $58.00 to $62.00 and gave the company an “equal weight” rating in a research note on Wednesday, December 11th. StockNews.com raised Kroger from a “buy” rating to a “strong-buy” rating in a report on Monday, December 30th. Finally, BMO Capital Markets raised their target price on Kroger from $60.00 to $63.00 and gave the company a “market perform” rating in a research note on Thursday, December 12th. Six investment analysts have rated the stock with a hold rating, eight have given a buy rating and two have issued a strong buy rating to the stock. According to MarketBeat.com, Kroger currently has an average rating of “Moderate Buy” and an average target price of $65.93.

Kroger Stock Performance

Shares of NYSE KR traded up $0.43 during midday trading on Tuesday, hitting $59.92. 4,996,583 shares of the company’s stock were exchanged, compared to its average volume of 6,179,010. 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 firm has a market capitalization of $43.36 billion, a PE ratio of 15.85, a price-to-earnings-growth ratio of 0.97 and a beta of 0.48. Kroger has a 12 month low of $44.48 and a 12 month high of $63.59. The company’s 50 day moving average price is $60.28 and its 200 day moving average price is $56.44.

Kroger (NYSE:KR) last issued its quarterly earnings data 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. Kroger had a return on equity of 27.73% and a net margin of 1.85%. The company had revenue of $33.63 billion during the quarter, compared to analysts’ expectations of $34.19 billion. During the same quarter in the previous year, the company posted $0.95 earnings per share. The business’s revenue was down 1.0% on a year-over-year basis. As a group, analysts predict that Kroger will post 4.43 earnings per share for the current fiscal year.

Kroger announced that its Board of Directors has authorized a share buyback plan on Wednesday, December 11th that allows the company to repurchase $7.50 billion in outstanding shares. This repurchase authorization allows the company to buy up to 16.9% of its shares through open market purchases. Shares repurchase plans are generally an indication that the company’s board believes its stock is undervalued.

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.