Kroger (NYSE:KR) Given New $62.00 Price Target at Morgan Stanley

Kroger (NYSE:KR) had its price objective upped by Morgan Stanley from $58.00 to $62.00 in a research note published on Wednesday morning,Benzinga reports. Morgan Stanley currently has an equal weight rating on the stock.

Several other brokerages have also recently issued reports on KR. Evercore ISI lifted their price objective on shares of Kroger from $62.00 to $63.00 and gave the stock an “outperform” rating in a research note on Friday, September 13th. Telsey Advisory Group restated an “outperform” rating and issued a $65.00 price target on shares of Kroger in a research report on Wednesday. Guggenheim upped their price target on Kroger from $61.00 to $63.00 and gave the company a “buy” rating in a report on Monday, November 25th. Roth Mkm raised their price objective on Kroger from $52.00 to $56.00 and gave the stock a “neutral” rating in a research note on Friday, December 6th. Finally, Wells Fargo & Company boosted their target price on Kroger from $65.00 to $70.00 and gave the stock an “overweight” rating in a research report on Thursday, December 5th. Six investment analysts have rated the stock with a hold rating, eight have given a buy rating and one has given a strong buy rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $64.31.

Kroger Stock Performance

KR opened at $62.08 on Wednesday. The business has a 50 day moving average price of $58.28 and a two-hundred day moving average price of $54.87. The company has a debt-to-equity ratio of 1.74, a current ratio of 1.54 and a quick ratio of 1.07. The company has a market capitalization of $44.91 billion, a price-to-earnings ratio of 16.42, a price-to-earnings-growth ratio of 0.96 and a beta of 0.48. Kroger has a 1-year low of $43.51 and a 1-year high of $63.59.

Kroger (NYSE:KR) last announced its quarterly earnings data on Thursday, December 5th. The company reported $0.98 earnings per share for the quarter, beating the consensus estimate of $0.97 by $0.01. The business had revenue of $33.63 billion during the quarter, compared to analyst estimates of $34.19 billion. Kroger had a return on equity of 27.73% and a net margin of 1.85%. The company’s revenue was down 1.0% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.95 earnings per share. Research analysts predict that Kroger will post 4.44 EPS for the current fiscal year.

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

Kroger Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Sunday, December 1st. Stockholders of record on Friday, November 15th were issued a $0.32 dividend. The ex-dividend date was Friday, November 15th. This represents a $1.28 dividend on an annualized basis and a dividend yield of 2.06%. Kroger’s dividend payout ratio is 33.86%.

Insider Activity

In related news, SVP Yael Cosset sold 20,000 shares of the stock in a transaction that occurred on Tuesday, December 10th. The stock was sold at an average price of $58.39, for a total value of $1,167,800.00. Following the transaction, the senior vice president now owns 144,620 shares in the company, valued at approximately $8,444,361.80. This represents a 12.15 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, VP Carin L. Fike sold 3,010 shares of the business’s stock in a transaction that occurred on Tuesday, September 17th. The stock was sold at an average price of $55.57, for a total transaction of $167,265.70. Following the completion of the sale, the vice president now directly owns 47,593 shares of the company’s stock, valued at $2,644,743.01. This represents a 5.95 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 58,821 shares of company stock worth $3,445,490 in the last ninety days. Corporate insiders own 1.40% of the company’s stock.

Hedge Funds Weigh In On Kroger

Several institutional investors have recently bought and sold shares of KR. Diversified Trust Co acquired a new position in shares of Kroger during the 2nd quarter valued at about $315,000. Wealth Enhancement Advisory Services LLC boosted its position in Kroger by 36.2% during the second quarter. Wealth Enhancement Advisory Services LLC now owns 138,978 shares of the company’s stock worth $6,939,000 after purchasing an additional 36,903 shares during the period. ORG Partners LLC bought a new stake in Kroger during the second quarter worth approximately $42,000. PGGM Investments acquired a new position in Kroger during the second quarter valued at approximately $396,000. Finally, Swedbank AB raised its position in shares of Kroger by 9.3% in the second quarter. Swedbank AB now owns 342,312 shares of the company’s stock valued at $17,092,000 after purchasing an additional 28,992 shares during the period. 80.93% of the stock is currently owned by institutional investors.

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.