Kroger (NYSE:KR) Releases Earnings Results, Beats Estimates By $0.05 EPS

Kroger (NYSE:KR) posted its quarterly earnings data on Thursday. The company reported $1.14 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.09 by $0.05, Zacks reports. Kroger had a return on equity of 27.73% and a net margin of 1.85%. Kroger updated its FY 2025 guidance to 4.600-4.800 EPS.

Kroger Stock Performance

Shares of NYSE KR traded up $1.79 during midday trading on Thursday, hitting $64.32. 4,540,104 shares of the stock traded hands, compared to its average volume of 5,555,934. Kroger has a one year low of $49.04 and a one year high of $66.26. The firm has a 50-day moving average of $62.16 and a two-hundred day moving average of $58.82. The firm has a market capitalization of $46.54 billion, a P/E ratio of 17.08, a PEG ratio of 2.85 and a beta of 0.51. The company has a debt-to-equity ratio of 1.74, a quick ratio of 1.07 and a current ratio of 1.54.

Kroger Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Saturday, March 1st. Stockholders of record on Friday, February 14th were issued a dividend of $0.32 per share. The ex-dividend date was Friday, February 14th. This represents a $1.28 annualized dividend and a dividend yield of 1.99%. Kroger’s payout ratio is 33.86%.

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

Analyst Upgrades and Downgrades

KR has been the subject of a number of recent research reports. Roth Mkm boosted their target price on Kroger from $52.00 to $56.00 and gave the company a “neutral” rating in a research note on Friday, December 6th. StockNews.com lowered Kroger from a “strong-buy” rating to a “buy” rating in a research report on Tuesday, January 14th. JPMorgan Chase & Co. upped their target price on Kroger from $69.00 to $71.00 and gave the stock an “overweight” rating in a report on Monday, January 6th. The Goldman Sachs Group reiterated a “buy” rating and set a $70.00 target price on shares of Kroger in a report on Tuesday, February 4th. Finally, BMO Capital Markets upped their price target on Kroger from $60.00 to $63.00 and gave the stock a “market perform” rating in a research note on Thursday, December 12th. Seven investment analysts have rated the stock with a hold rating, ten have assigned a buy rating and one has given a strong buy rating to the company’s stock. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $67.19.

Insider Buying and Selling

In other Kroger news, SVP Stuart Aitken sold 132,627 shares of the firm’s stock in a transaction dated 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 of the company’s stock, valued at $13,743,103.14. This trade represents a 37.88 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, SVP Yael Cosset sold 20,000 shares of the firm’s stock in a transaction dated Tuesday, December 10th. The shares were 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 of the company’s stock, valued at approximately $8,444,361.80. The trade was a 12.15 % decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders have sold 195,448 shares of company stock valued at $12,143,923. 1.40% of the stock is owned by company insiders.

Institutional Inflows and Outflows

An institutional investor recently raised its position in Kroger stock. Brighton Jones LLC increased its stake in The Kroger Co. (NYSE:KR) by 27.3% in the 4th quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 15,733 shares of the company’s stock after acquiring an additional 3,373 shares during the period. Brighton Jones LLC’s holdings in Kroger were worth $962,000 as of its most recent SEC filing. 80.93% of the stock is currently owned by hedge funds and other 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.