True North Advisors LLC Makes New $3.13 Million Investment in The Kroger Co. (NYSE:KR)

True North Advisors LLC purchased a new position in shares of The Kroger Co. (NYSE:KR) during the 4th quarter, according to the company in its most recent 13F filing with the SEC. The institutional investor purchased 51,217 shares of the company’s stock, valued at approximately $3,132,000.

A number of other hedge funds and other institutional investors have also modified their holdings of the business. Northwest Investment Counselors LLC bought a new position in Kroger during the third quarter worth $34,000. Newbridge Financial Services Group Inc. grew its position in Kroger by 218.8% in the 2nd quarter. Newbridge Financial Services Group Inc. now owns 714 shares of the company’s stock worth $36,000 after purchasing an additional 490 shares during the last quarter. Harbor Capital Advisors Inc. bought a new position in shares of Kroger during the 3rd quarter worth about $40,000. Capital Performance Advisors LLP acquired a new position in shares of Kroger during the third quarter valued at about $43,000. Finally, Strategic Investment Solutions Inc. IL bought a new stake in shares of Kroger in the second quarter valued at about $44,000. Institutional investors own 80.93% of the company’s stock.

Kroger Stock Performance

Shares of Kroger stock opened at $58.78 on Thursday. The firm has a 50 day simple moving average of $60.18 and a 200 day simple moving average of $56.72. The Kroger Co. has a fifty-two week low of $44.48 and a fifty-two week high of $63.59. The company has a debt-to-equity ratio of 1.74, a current ratio of 1.54 and a quick ratio of 1.07. The firm has a market cap of $42.53 billion, a P/E ratio of 15.55, a P/E/G ratio of 2.77 and a beta of 0.48.

Kroger (NYSE:KR) last announced its quarterly earnings data on Thursday, December 5th. The company reported $0.98 EPS for the quarter, topping 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 firm had revenue of $33.63 billion during the quarter, compared to analyst estimates of $34.19 billion. During the same period last year, the company earned $0.95 earnings per share. The company’s revenue was down 1.0% on a year-over-year basis. Sell-side analysts predict that The Kroger Co. will post 4.44 earnings per share for the current fiscal year.

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

Analyst Ratings Changes

Several equities analysts have commented on the company. Telsey Advisory Group reaffirmed an “outperform” rating and issued a $70.00 price target on shares of Kroger in a report on Monday, December 23rd. Morgan Stanley upped their target price on Kroger from $62.00 to $65.00 and gave the company an “equal weight” rating in a research note on Tuesday. Wells Fargo & Company lifted their price target on shares of Kroger from $70.00 to $73.00 and gave the stock an “overweight” rating in a research note on Thursday, December 12th. JPMorgan Chase & Co. increased their price objective on shares of Kroger from $69.00 to $71.00 and gave the company an “overweight” rating in a research note on Monday, January 6th. Finally, BNP Paribas assumed coverage on shares of Kroger in a research note on Friday, October 18th. They issued a “neutral” rating and a $56.00 target price on the stock. Six investment 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 company. According to MarketBeat.com, Kroger currently has a consensus rating of “Moderate Buy” and an average target price of $66.14.

Insider Transactions at Kroger

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

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.