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

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

Insider Buying and Selling at Kroger

In other Kroger news, SVP Stuart Aitken sold 132,627 shares of the firm’s 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 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 ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, CFO Todd A. Foley sold 16,932 shares of the firm’s stock in a transaction dated Thursday, December 19th. The shares were 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 directly owns 53,782 shares in the company, valued at approximately $3,304,366.08. The trade was a 23.94 % decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 195,448 shares of company stock valued at $12,143,923. 1.40% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Kroger

Hedge funds have recently modified their holdings of the company. Nordea Investment Management AB boosted its position in Kroger by 3.8% during the fourth quarter. Nordea Investment Management AB now owns 4,052,534 shares of the company’s stock valued at $249,717,000 after purchasing an additional 148,221 shares during the last quarter. Charles Schwab Investment Management Inc. lifted its stake in Kroger by 1.1% in the third quarter. Charles Schwab Investment Management Inc. now owns 4,890,887 shares of the company’s stock valued at $280,248,000 after acquiring an additional 53,006 shares during the last quarter. Sumitomo Mitsui Trust Group Inc. increased its stake in shares of Kroger by 1.7% during the 3rd quarter. Sumitomo Mitsui Trust Group Inc. now owns 2,176,218 shares of the company’s stock worth $124,697,000 after purchasing an additional 36,083 shares during the last quarter. Lighthouse Investment Partners LLC bought a new position in shares of Kroger during the 2nd quarter valued at $10,336,000. Finally, World Investment Advisors LLC acquired a new stake in shares of Kroger in the 3rd quarter valued at $566,000. 80.93% of the stock is currently owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

KR has been the subject of several research analyst reports. Telsey Advisory Group reiterated an “outperform” rating and set a $70.00 price objective on shares of Kroger in a research report on Monday, December 23rd. Melius Research assumed coverage on Kroger in a report on Monday, September 23rd. They issued a “hold” rating and a $55.00 price objective on the stock. StockNews.com upgraded Kroger from a “buy” rating to a “strong-buy” rating in a report on Monday, December 30th. JPMorgan Chase & Co. lifted their price target on Kroger from $69.00 to $71.00 and gave the stock an “overweight” rating in a research note on Monday, January 6th. Finally, BNP Paribas started 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, eight have issued a buy rating and two have given a strong buy rating to the company. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $65.93.

Kroger Price Performance

Shares of NYSE:KR traded up $0.43 on Tuesday, reaching $59.92. 4,996,583 shares of the company were exchanged, compared to its average volume of 6,179,010. The company has a current ratio of 1.54, a quick ratio of 1.07 and a debt-to-equity ratio of 1.74. Kroger has a 1-year low of $44.48 and a 1-year high of $63.59. The company has a 50-day moving average of $60.28 and a 200-day moving average of $56.44. The firm has a market cap of $43.36 billion, a price-to-earnings ratio of 15.85, a price-to-earnings-growth ratio of 0.97 and a beta of 0.48.

Kroger (NYSE:KR) last announced its earnings results on Thursday, December 5th. The company reported $0.98 EPS for the quarter, beating analysts’ consensus estimates of $0.97 by $0.01. The firm had revenue of $33.63 billion for the quarter, compared to analysts’ expectations of $34.19 billion. Kroger had a return on equity of 27.73% and a net margin of 1.85%. Kroger’s quarterly revenue was down 1.0% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.95 EPS. Equities analysts forecast that Kroger will post 4.43 earnings per share for the current fiscal year.

Kroger announced that its Board of Directors has authorized a stock repurchase plan on Wednesday, December 11th that allows the company to buyback $7.50 billion in outstanding shares. This buyback authorization allows the company to buy up to 16.9% of its shares through open market purchases. Shares buyback plans are generally a sign that the company’s board of directors believes its shares are 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.