The Kroger Co. (NYSE:KR) Short Interest Up 307.0% in January

The Kroger Co. (NYSE:KR) was the target of a significant increase in short interest in January. As of January 15th, there was short interest totalling 48,590,000 shares, an increase of 307.0% from the December 31st total of 11,940,000 shares. Based on an average trading volume of 4,910,000 shares, the short-interest ratio is currently 9.9 days. Approximately 6.8% of the company’s stock are short sold.

Kroger Trading Up 0.2 %

Shares of NYSE KR traded up $0.11 during mid-day trading on Thursday, hitting $61.17. The stock had a trading volume of 895,340 shares, compared to its average volume of 5,041,934. The firm has a market cap of $44.26 billion, a P/E ratio of 16.18, a price-to-earnings-growth ratio of 2.76 and a beta of 0.48. The company has a debt-to-equity ratio of 1.74, a quick ratio of 1.07 and a current ratio of 1.54. The business has a 50 day moving average price of $60.33 and a two-hundred day moving average price of $56.99. Kroger has a 1 year low of $44.48 and a 1 year high of $63.59.

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

Kroger declared that its Board of Directors has initiated a stock repurchase program on Wednesday, December 11th that permits the company to repurchase $7.50 billion in shares. This repurchase authorization permits the company to buy up to 16.9% of its shares through open market purchases. Shares repurchase programs are generally a sign that the company’s board believes its shares are undervalued.

Wall Street Analysts Forecast Growth

Several research firms have recently weighed in on KR. Roth Mkm increased their price target on Kroger from $52.00 to $56.00 and gave the stock a “neutral” rating in a research note on Friday, December 6th. UBS Group increased their target price on shares of Kroger from $63.00 to $66.00 and gave the stock a “neutral” rating in a research report on Thursday, December 12th. Jefferies Financial Group raised shares of Kroger from a “hold” rating to a “buy” rating and boosted their price target for the company from $54.00 to $73.00 in a research report on Tuesday, December 3rd. Guggenheim initiated coverage on Kroger in a research report on Thursday, December 19th. They set a “buy” rating and a $68.00 target price on the stock. Finally, BMO Capital Markets raised their price target on Kroger from $60.00 to $63.00 and gave the stock a “market perform” rating in a report on Thursday, December 12th. Seven research analysts have rated the stock with a hold rating, nine 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 an average rating of “Moderate Buy” and an average price target of $65.80.

Insiders Place Their Bets

In other Kroger news, SVP Yael Cosset sold 20,000 shares of the firm’s stock in a transaction 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 transaction, the senior vice president now directly owns 144,620 shares in the company, valued at approximately $8,444,361.80. This trade represents a 12.15 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, SVP Timothy A. Massa sold 25,889 shares of Kroger stock in a transaction 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 directly owns 115,861 shares in the company, valued at $6,965,563.32. This represents a 18.26 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 195,448 shares of company stock worth $12,143,923. Corporate insiders own 1.40% of the company’s stock.

Institutional Trading of Kroger

Hedge funds and other institutional investors have recently modified their holdings of the business. Northwest Investment Counselors LLC purchased a new position in Kroger in the third quarter worth about $34,000. Adirondack Trust Co. raised its holdings in Kroger by 1,628.1% in 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 stake 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 purchasing an additional 490 shares during the last quarter. Crews Bank & Trust bought a new stake in shares of Kroger in the 4th quarter worth $39,000. Finally, McClarren Financial Advisors Inc. bought a new position in shares of Kroger during the fourth quarter valued at $39,000. 80.93% of the stock is owned by hedge funds and other institutional investors.

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.