Stock Traders Purchase Large Volume of Call Options on Kroger (NYSE:KR)

The Kroger Co. (NYSE:KR) saw some unusual options trading on Wednesday. Investors acquired 28,347 call options on the company. This is an increase of 132% compared to the typical daily volume of 12,206 call options.

Kroger Stock Performance

NYSE:KR opened at $59.80 on Thursday. The firm has a market capitalization of $43.26 billion, a price-to-earnings ratio of 15.65, a PEG ratio of 0.87 and a beta of 0.48. Kroger has a twelve month low of $42.10 and a twelve month high of $59.92. The firm’s fifty day simple moving average is $55.52 and its 200 day simple moving average is $53.94. The company has a current ratio of 0.87, a quick ratio of 0.46 and a debt-to-equity ratio of 0.96.

Kroger (NYSE:KR) last announced its quarterly earnings data on Thursday, September 12th. The company reported $0.93 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.91 by $0.02. Kroger had a return on equity of 28.54% and a net margin of 1.86%. The firm had revenue of $33.91 billion for the quarter, compared to analysts’ expectations of $34.09 billion. During the same quarter in the prior year, the firm posted $0.96 earnings per share. Kroger’s revenue for the quarter was up .2% compared to the same quarter last year. As a group, equities research analysts expect that Kroger will post 4.46 earnings per share for the current fiscal year.

Kroger Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Sunday, December 1st. Shareholders of record on Friday, November 15th will be paid a $0.32 dividend. This represents a $1.28 dividend on an annualized basis and a yield of 2.14%. The ex-dividend date is Friday, November 15th. Kroger’s dividend payout ratio (DPR) is presently 33.51%.

Analysts Set New Price Targets

Several equities research analysts have recently issued reports on KR shares. JPMorgan Chase & Co. raised their price objective on Kroger from $58.00 to $59.00 and gave the company an “overweight” rating in a research note on Friday, September 13th. Melius Research began coverage on Kroger in a report on Monday, September 23rd. They set a “hold” rating and a $55.00 price objective on the stock. Telsey Advisory Group reiterated an “outperform” rating and issued a $62.00 price target on shares of Kroger in a report on Wednesday, October 9th. Evercore ISI raised their price objective on Kroger from $62.00 to $63.00 and gave the stock an “outperform” rating in a research report on Friday, September 13th. Finally, Morgan Stanley lifted their price target on Kroger from $57.00 to $58.00 and gave the stock an “equal weight” rating in a research report on Friday, September 13th. Four investment analysts have rated the stock with a hold rating, eight have given a buy rating and one has issued a strong buy rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $60.09.

Insider Activity at Kroger

In other Kroger news, SVP Valerie L. Jabbar sold 3,000 shares of Kroger stock in a transaction that occurred on Monday, September 23rd. The stock was sold at an average price of $55.91, for a total value of $167,730.00. Following the transaction, the senior vice president now directly owns 74,084 shares of the company’s stock, valued at $4,142,036.44. The trade was a 0.00 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. In other Kroger news, VP Brian W. Nichols sold 6,922 shares of the business’s stock in a transaction on Monday, October 7th. The stock was sold at an average price of $55.80, for a total value of $386,247.60. Following the sale, the vice president now directly owns 14,063 shares of the company’s stock, valued at approximately $784,715.40. The trade was a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, SVP Valerie L. Jabbar sold 3,000 shares of the company’s stock in a transaction on Monday, September 23rd. The shares were sold at an average price of $55.91, for a total value of $167,730.00. Following the sale, the senior vice president now owns 74,084 shares of the company’s stock, valued at approximately $4,142,036.44. This trade represents a 0.00 % decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders have sold 12,932 shares of company stock valued at $721,243. Corporate insiders own 1.40% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in KR. Altshuler Shaham Ltd bought a new stake in shares of Kroger during the 2nd quarter worth approximately $28,000. Northwest Investment Counselors LLC bought a new position in shares of Kroger during the third quarter worth about $34,000. Newbridge Financial Services Group Inc. grew its holdings in Kroger by 218.8% during the 2nd quarter. Newbridge Financial Services Group Inc. now owns 714 shares of the company’s stock worth $36,000 after acquiring an additional 490 shares during the period. Harbor Capital Advisors Inc. bought a new position in Kroger during the third quarter worth $40,000. Finally, ORG Partners LLC bought a new stake in shares of Kroger during the second quarter valued at approximately $42,000. Institutional investors own 80.93% 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.