Share Repurchase Program Approved by Kroger (NYSE:KR)

Kroger (NYSE:KR) declared that its Board of Directors has initiated a stock repurchase program on Wednesday, December 11th, RTT News reports. The company plans 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 programs are typically an indication that the company’s leadership believes its shares are undervalued.

Kroger Stock Performance

Shares of KR opened at $62.08 on Friday. Kroger has a 12 month low of $43.51 and a 12 month high of $63.59. The stock has a fifty day moving average price of $58.15 and a 200-day moving average price of $54.81. 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 firm has a market cap of $44.91 billion, a PE ratio of 16.75, a P/E/G ratio of 0.96 and a beta of 0.48.

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

Kroger Announces Dividend

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

Wall Street Analyst Weigh In

Several research analysts recently issued reports on the company. Jefferies Financial Group raised Kroger from a “hold” rating to a “buy” rating and increased their price objective for the stock from $54.00 to $73.00 in a research note on Tuesday, December 3rd. Roth Mkm increased 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. Telsey Advisory Group reissued an “outperform” rating and issued a $65.00 price objective on shares of Kroger in a research note on Wednesday. BNP Paribas assumed coverage on Kroger in a research note on Friday, October 18th. They issued a “neutral” rating and a $56.00 price objective on the stock. Finally, Morgan Stanley increased their price objective on Kroger from $58.00 to $62.00 and gave the stock an “equal weight” rating in a research note on Wednesday. Six equities research analysts have rated the stock with a hold rating, eight have issued a buy rating and one has issued a strong buy rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $64.31.

Insider Activity

In related news, SVP Valerie L. Jabbar sold 3,000 shares of the company’s stock in a transaction on Monday, September 23rd. The stock was 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 of the company’s stock, valued at $4,142,036.44. This represents a 3.89 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, VP Carin L. Fike sold 3,010 shares of the company’s stock in a transaction on Tuesday, September 17th. The shares were sold at an average price of $55.57, for a total value of $167,265.70. Following the completion of the transaction, the vice president now directly owns 47,593 shares in the company, valued at approximately $2,644,743.01. The trade was a 5.95 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders sold 58,821 shares of company stock worth $3,445,490. Insiders own 1.40% of the company’s stock.

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.