Kroger (NYSE:KR) Releases Earnings Results, Beats Estimates By $0.05 EPS

Kroger (NYSE:KR) released its quarterly earnings data on Thursday. The company reported $1.14 EPS for the quarter, topping the consensus estimate of $1.09 by $0.05, Zacks reports. Kroger had a return on equity of 27.73% and a net margin of 1.85%. Kroger updated its FY 2025 guidance to 4.600-4.800 EPS.

Kroger Price Performance

Shares of Kroger stock traded up $1.50 on Thursday, hitting $64.03. 4,719,141 shares of the company traded hands, compared to its average volume of 5,555,934. 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 simple moving average of $62.16 and a 200 day simple moving average of $58.82. Kroger has a 52 week low of $49.04 and a 52 week high of $66.26. The stock has a market capitalization of $46.33 billion, a P/E ratio of 16.90, a price-to-earnings-growth ratio of 2.85 and a beta of 0.51.

Kroger Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Saturday, March 1st. Investors of record on Friday, February 14th were paid a dividend of $0.32 per share. This represents a $1.28 annualized dividend and a yield of 2.00%. The ex-dividend date was Friday, February 14th. Kroger’s dividend payout ratio (DPR) is presently 33.86%.

Analyst Upgrades and Downgrades

Several research analysts have recently weighed in on the stock. Telsey Advisory Group reissued an “outperform” rating and set a $73.00 price objective on shares of Kroger in a report on Monday. Wells Fargo & Company boosted their target price on shares of Kroger from $70.00 to $73.00 and gave the company an “overweight” rating in a research note on Thursday, December 12th. JPMorgan Chase & Co. upped their price objective on Kroger from $69.00 to $71.00 and gave the company an “overweight” rating in a research report on Monday, January 6th. Jefferies Financial Group raised Kroger from a “hold” rating to a “buy” rating and raised their target price for the stock from $54.00 to $73.00 in a research report on Tuesday, December 3rd. Finally, Bank of America upped their price target on shares of Kroger from $70.00 to $75.00 and gave the company a “buy” rating in a research report on Friday, December 20th. Seven equities research analysts have rated the stock with a hold rating, ten have given a buy rating and one has given a strong buy rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $67.19.

Insider Activity at Kroger

In other Kroger news, CFO Todd A. Foley sold 16,932 shares of the firm’s stock in a transaction that occurred on Thursday, December 19th. The stock was sold at an average price of $61.44, for a total transaction of $1,040,302.08. Following the completion of the transaction, the chief financial officer now owns 53,782 shares in the company, valued at $3,304,366.08. This trade represents a 23.94 % decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, SVP Stuart Aitken sold 132,627 shares of Kroger stock in a transaction that occurred on Thursday, December 12th. The stock was sold at an average price of $63.18, for a total value of $8,379,373.86. Following the completion of the sale, the senior vice president now directly owns 217,523 shares in the company, valued at approximately $13,743,103.14. The trade was a 37.88 % decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 195,448 shares of company stock valued at $12,143,923. Corporate insiders own 1.40% of the company’s stock.

Institutional Investors Weigh In On Kroger

A hedge fund recently raised its stake in Kroger stock. Brighton Jones LLC grew its holdings in The Kroger Co. (NYSE:KR) by 27.3% in the fourth quarter, according to its most recent filing with the Securities & Exchange Commission. The institutional investor owned 15,733 shares of the company’s stock after buying an additional 3,373 shares during the period. Brighton Jones LLC’s holdings in Kroger were worth $962,000 as of its most recent filing with the Securities & Exchange Commission. Hedge funds and other institutional investors own 80.93% of the company’s stock.

Kroger announced that its Board of Directors has initiated a share repurchase plan on Wednesday, December 11th that authorizes the company to buyback $7.50 billion in shares. This buyback authorization authorizes the company to repurchase up to 16.9% of its shares through open market purchases. Shares buyback plans are generally an indication that the company’s board of directors believes its stock is undervalued.

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.