Kroger (NYSE:KR) Shares Gap Up on Earnings Beat

The Kroger Co. (NYSE:KR)’s share price gapped up prior to trading on Friday after the company announced better than expected quarterly earnings. The stock had previously closed at $65.52, but opened at $68.21. Kroger shares last traded at $70.06, with a volume of 4,229,876 shares traded.

The company reported $1.49 earnings per share for the quarter, beating the consensus estimate of $1.45 by $0.04. The company had revenue of $45.12 billion during the quarter, compared to analysts’ expectations of $45.35 billion. Kroger had a return on equity of 28.17% and a net margin of 1.81%. Kroger’s quarterly revenue was down .3% on a year-over-year basis. During the same period last year, the business earned $1.43 earnings per share.

Analyst Upgrades and Downgrades

KR has been the subject of a number of recent analyst reports. JPMorgan Chase & Co. boosted their price objective on Kroger from $72.00 to $82.00 and gave the company an “overweight” rating in a research report on Thursday, May 1st. Citigroup boosted their price objective on Kroger from $61.00 to $65.00 and gave the company a “neutral” rating in a research report on Friday, March 7th. Melius upgraded Kroger from a “sell” rating to a “hold” rating and set a $70.00 price objective for the company in a research report on Tuesday, May 20th. Telsey Advisory Group restated an “outperform” rating and issued a $73.00 price objective on shares of Kroger in a research report on Friday. Finally, Roth Capital set a $58.00 price objective on Kroger in a research report on Thursday, March 6th. Eight equities research analysts have rated the stock with a hold rating and ten have issued a buy rating to the stock. According to MarketBeat.com, Kroger has an average rating of “Moderate Buy” and an average price target of $68.11.

Insiders Place Their Bets

In other Kroger news, VP Carin L. Fike sold 5,541 shares of the business’s stock in a transaction on Thursday, April 3rd. The stock was sold at an average price of $70.79, for a total transaction of $392,247.39. Following the transaction, the vice president now owns 3,480 shares of the company’s stock, valued at approximately $246,349.20. The trade was a 61.42% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, VP Brian W. Nichols sold 1,000 shares of the business’s stock in a transaction on Monday, April 21st. The stock was sold at an average price of $72.03, for a total value of $72,030.00. Following the transaction, the vice president now directly owns 10,473 shares in the company, valued at $754,370.19. This trade represents a 8.72% decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 111,679 shares of company stock valued at $7,865,706. Insiders own 0.44% of the company’s stock.

Hedge Funds Weigh In On Kroger

Several large investors have recently modified their holdings of the business. Voya Investment Management LLC lifted its stake in shares of Kroger by 1.3% in the 1st quarter. Voya Investment Management LLC now owns 208,073 shares of the company’s stock valued at $14,084,000 after purchasing an additional 2,586 shares during the last quarter. 1248 Management LLC purchased a new stake in shares of Kroger in the 1st quarter valued at $631,000. First Hawaiian Bank acquired a new position in Kroger during the 1st quarter worth about $383,000. Modern Wealth Management LLC acquired a new position in Kroger during the 1st quarter worth about $654,000. Finally, Strs Ohio acquired a new position in Kroger during the 1st quarter worth about $62,730,000. Institutional investors and hedge funds own 80.93% of the company’s stock.

Kroger Trading Up 9.7%

The company has a 50 day moving average of $68.89 and a 200-day moving average of $65.24. The company has a debt-to-equity ratio of 2.13, a quick ratio of 0.52 and a current ratio of 0.96. The stock has a market cap of $47.48 billion, a price-to-earnings ratio of 19.58, a price-to-earnings-growth ratio of 2.15 and a beta of 0.58.

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.