Kroger (NYSE:KR) Shares Gap Up After Earnings Beat

The Kroger Co. (NYSE:KR) shares gapped up before the market opened on Friday following a stronger than expected earnings report. The stock had previously closed at $65.52, but opened at $68.21. Kroger shares last traded at $70.06, with a volume of 4,229,876 shares trading hands.

The company reported $1.49 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.45 by $0.04. The firm had revenue of $45.12 billion for the quarter, compared to analyst estimates of $45.35 billion. Kroger had a net margin of 1.81% and a return on equity of 28.17%. Kroger’s revenue was down .3% on a year-over-year basis. During the same period in the previous year, the firm earned $1.43 EPS.

Analyst Ratings Changes

A number of brokerages have issued reports on KR. Evercore ISI cut their price target on shares of Kroger from $76.00 to $75.00 and set an “outperform” rating on the stock in a research note on Tuesday. Melius Research upgraded shares of Kroger from a “strong sell” rating to a “hold” rating in a research note on Tuesday, May 20th. Telsey Advisory Group reiterated an “outperform” rating and set a $73.00 price target on shares of Kroger in a research note on Friday. Roth Capital set a $58.00 price target on shares of Kroger in a research note on Thursday, March 6th. Finally, Citigroup boosted their price target on shares of Kroger from $61.00 to $65.00 and gave the stock a “neutral” rating in a research note on Friday, March 7th. Eight 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 stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $68.11.

Insider Buying and Selling at Kroger

In other Kroger news, VP Carin L. Fike sold 5,541 shares of the stock in a transaction that occurred on Thursday, April 3rd. The shares were sold at an average price of $70.79, for a total value of $392,247.39. Following the transaction, the vice president now directly owns 3,480 shares in the company, valued at $246,349.20. This represents a 61.42% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, SVP Valerie L. Jabbar sold 31,271 shares of the stock in a transaction that occurred on Wednesday, April 16th. The shares were sold at an average price of $69.08, for a total transaction of $2,160,200.68. Following the completion of the transaction, the senior vice president now owns 82,684 shares in the company, valued at $5,711,810.72. This represents a 27.44% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 111,679 shares of company stock worth $7,865,706 over the last three months. Insiders own 0.44% of the company’s stock.

Institutional Investors Weigh In On Kroger

Several large investors have recently modified their holdings of the company. Accent Capital Management LLC purchased a new position in Kroger in the first quarter worth $25,000. Millstone Evans Group LLC purchased a new position in Kroger in the fourth quarter worth $25,000. Whipplewood Advisors LLC purchased a new position in Kroger in the fourth quarter worth $26,000. TCTC Holdings LLC purchased a new position in Kroger in the fourth quarter worth $27,000. Finally, Transce3nd LLC purchased a new position in Kroger in the fourth quarter worth $28,000. 80.93% of the stock is owned by institutional investors and hedge funds.

Kroger Price Performance

The company has a 50-day simple moving average of $68.89 and a 200-day simple moving average of $65.20. The stock has a market cap of $47.48 billion, a PE ratio of 19.58, a PEG ratio of 1.96 and a beta of 0.58. The company has a debt-to-equity ratio of 2.13, a current ratio of 0.96 and a quick ratio of 0.52.

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.