Share Repurchase Program Approved by Kroger (NYSE:KR)

Kroger (NYSE:KR) declared that its board has authorized a stock buyback plan on Wednesday, December 11th, RTT News reports. The company plans to buyback $7.50 billion in outstanding shares. This buyback authorization authorizes the company to repurchase up to 16.9% of its stock through open market purchases. Stock buyback plans are usually a sign that the company’s board believes its shares are undervalued.

Kroger Price Performance

NYSE:KR opened at $62.08 on Friday. The company has a current ratio of 1.54, a quick ratio of 1.07 and a debt-to-equity ratio of 1.74. The company has a market capitalization of $44.91 billion, a P/E ratio of 16.75, a P/E/G ratio of 0.96 and a beta of 0.48. Kroger has a 12 month low of $43.51 and a 12 month high of $63.59. The business’s 50-day moving average is $58.15 and its 200 day moving average is $54.81.

Kroger (NYSE:KR) last posted its earnings results on Thursday, December 5th. The company reported $0.98 EPS for the quarter, topping analysts’ consensus estimates of $0.97 by $0.01. The company had revenue of $33.63 billion for the quarter, compared to the consensus estimate of $34.19 billion. Kroger had a return on equity of 27.73% and a net margin of 1.85%. The firm’s revenue for the quarter was down 1.0% on a year-over-year basis. During the same period in the previous year, the business earned $0.95 earnings per share. On average, equities research analysts forecast that Kroger will post 4.44 earnings per share for the current fiscal year.

Kroger Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Sunday, December 1st. Shareholders of record on Friday, November 15th were paid a dividend of $0.32 per share. The ex-dividend date was Friday, November 15th. This represents a $1.28 annualized dividend and a yield of 2.06%. Kroger’s payout ratio is currently 33.86%.

Analyst Ratings Changes

Several research firms recently weighed in on KR. JPMorgan Chase & Co. lifted their target price on Kroger from $59.00 to $69.00 and gave the company an “overweight” rating in a research report on Friday, December 6th. Morgan Stanley lifted their target price on Kroger from $58.00 to $62.00 and gave the company an “equal weight” rating in a research report on Wednesday. BMO Capital Markets lifted 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. Wells Fargo & Company lifted their target price on Kroger from $70.00 to $73.00 and gave the company an “overweight” rating in a research report on Thursday. Finally, Roth Mkm lifted their target price on Kroger from $52.00 to $56.00 and gave the company a “neutral” rating in a research report on Friday, December 6th. Six analysts have rated the stock with a hold rating, eight have assigned a buy rating and one has given a strong buy rating to the company’s stock. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $64.31.

Insiders Place Their Bets

In other news, SVP Timothy A. Massa sold 25,889 shares of the company’s stock in a transaction that occurred on Friday, December 6th. The stock was sold at an average price of $60.12, for a total transaction of $1,556,446.68. Following the transaction, the senior vice president now owns 115,861 shares of the company’s stock, valued at approximately $6,965,563.32. This represents a 18.26 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, SVP Valerie L. Jabbar sold 3,000 shares of the company’s stock in a transaction that occurred on Monday, September 23rd. The shares were sold at an average price of $55.91, for a total value of $167,730.00. Following the transaction, the senior vice president now directly owns 74,084 shares in the company, valued at approximately $4,142,036.44. This represents a 3.89 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 58,821 shares of company stock valued at $3,445,490 over the last ninety days. 1.40% of the stock is owned by insiders.

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.