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

The Kroger Co. (NYSE:KR) was the recipient of a large growth in short interest during the month of January. As of January 15th, there was short interest totalling 48,590,000 shares, a growth of 307.0% from the December 31st 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. Currently, 6.8% of the shares of the company are short sold.

Wall Street Analysts Forecast Growth

A number of research analysts recently weighed in on the stock. Morgan Stanley lifted their target price on shares of Kroger from $62.00 to $65.00 and gave the company an “equal weight” rating in a research note on Tuesday, January 21st. Bank of America upped their price objective on 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. lifted their target price on Kroger from $69.00 to $71.00 and gave the company an “overweight” rating in a research note on Monday, January 6th. Jefferies Financial Group upgraded Kroger from a “hold” rating to a “buy” rating and upped their price target for the stock from $54.00 to $73.00 in a research note on Tuesday, December 3rd. Finally, BNP Paribas started coverage on shares of Kroger in a research report on Friday, October 18th. They set a “neutral” rating and a $56.00 price objective on the stock. Seven investment analysts have rated the stock with a hold rating, nine have issued a buy rating and one has assigned a strong buy rating to the company’s stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $65.80.

Insider Activity

In related 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 directly owns 115,861 shares of the company’s stock, valued at approximately $6,965,563.32. This represents a 18.26 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, SVP Yael Cosset sold 20,000 shares of the firm’s stock in a transaction that occurred on Tuesday, December 10th. The stock was sold at an average price of $58.39, for a total transaction of $1,167,800.00. Following the sale, the senior vice president now owns 144,620 shares in the company, 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. Insiders sold 195,448 shares of company stock valued at $12,143,923 in the last quarter. 1.40% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Kroger

Large investors have recently made changes to their positions in the company. Northwest Investment Counselors LLC bought a new stake in Kroger in the third quarter worth about $34,000. Adirondack Trust Co. lifted its stake in shares of Kroger by 1,628.1% during the 4th quarter. Adirondack Trust Co. now owns 553 shares of the company’s stock worth $34,000 after acquiring an additional 521 shares during the last quarter. Newbridge Financial Services Group Inc. boosted its holdings in Kroger by 218.8% during the 2nd quarter. Newbridge Financial Services Group Inc. now owns 714 shares of the company’s stock valued at $36,000 after acquiring an additional 490 shares during the period. Crews Bank & Trust bought a new position in Kroger in the 4th quarter valued at $39,000. Finally, McClarren Financial Advisors Inc. purchased a new stake in Kroger in the fourth quarter worth $39,000. 80.93% of the stock is owned by hedge funds and other institutional investors.

Kroger Price Performance

Shares of Kroger stock traded up $0.11 during trading hours on Thursday, reaching $61.17. The company’s stock had a trading volume of 895,340 shares, compared to its average volume of 5,041,934. The company has a debt-to-equity ratio of 1.74, a current ratio of 1.54 and a quick ratio of 1.07. Kroger has a one year low of $44.48 and a one year high of $63.59. The firm has a 50 day moving average price of $60.33 and a 200-day moving average price of $56.99. The stock has a market cap of $44.26 billion, a P/E ratio of 16.18, a P/E/G ratio of 2.76 and a beta of 0.48.

Kroger (NYSE:KR) last posted its quarterly earnings data on Thursday, December 5th. The company reported $0.98 earnings per share (EPS) 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 for the quarter was down 1.0% on a year-over-year basis. During the same period last year, the company earned $0.95 EPS. On average, analysts predict that Kroger will post 4.44 EPS for the current year.

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