The Kroger Co. (NYSE:KR) Sees Large Increase in Short Interest

The Kroger Co. (NYSE:KR) was the target of a large increase in short interest in 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. Approximately 6.8% of the company’s stock are sold short. Based on an average daily volume of 4,910,000 shares, the days-to-cover ratio is presently 9.9 days.

Kroger Stock Up 0.7 %

NYSE:KR traded up $0.42 during mid-day trading on Monday, hitting $59.54. The stock had a trading volume of 5,382,114 shares, compared to its average volume of 6,347,855. 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 twelve month low of $44.48 and a twelve month high of $63.59. The company has a market capitalization of $43.08 billion, a PE ratio of 15.75, a PEG ratio of 0.97 and a beta of 0.48. The stock has a 50-day simple moving average of $60.17 and a two-hundred day simple moving average of $56.30.

Kroger (NYSE:KR) last released its quarterly earnings data on Thursday, December 5th. The company reported $0.98 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.97 by $0.01. The business had revenue of $33.63 billion during 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%. The business’s quarterly revenue was down 1.0% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.95 EPS. On average, equities research analysts anticipate that Kroger will post 4.43 EPS for the current year.

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

Wall Street Analysts Forecast Growth

KR has been the topic of a number of recent analyst reports. Morgan Stanley increased their price target on Kroger from $58.00 to $62.00 and gave the stock an “equal weight” rating in a research report on Wednesday, December 11th. Roth Mkm lifted their price target on shares of Kroger from $52.00 to $56.00 and gave the company a “neutral” rating in a research note on Friday, December 6th. Telsey Advisory Group restated an “outperform” rating and set a $70.00 price objective on shares of Kroger in a research report on Monday, December 23rd. Wells Fargo & Company lifted their target price on shares of Kroger from $70.00 to $73.00 and gave the company an “overweight” rating in a research report on Thursday, December 12th. Finally, Guggenheim began coverage on shares of Kroger in a research note on Thursday, December 19th. They issued a “buy” rating and a $68.00 price target on the stock. Six equities research analysts have rated the stock with a hold rating, eight have assigned a buy rating and two have issued a strong buy rating to the company. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $65.93.

Insider Activity

In other news, SVP Yael Cosset sold 20,000 shares of the company’s stock in a transaction on Tuesday, December 10th. The stock was sold at an average price of $58.39, for a total transaction of $1,167,800.00. Following the transaction, the senior vice president now directly owns 144,620 shares of the company’s stock, valued at approximately $8,444,361.80. This represents a 12.15 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, SVP Timothy A. Massa sold 25,889 shares of the business’s stock in a transaction on Friday, December 6th. The stock was sold at an average price of $60.12, for a total value of $1,556,446.68. Following the transaction, the senior vice president now owns 115,861 shares in the company, valued at approximately $6,965,563.32. This trade represents a 18.26 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders sold 195,448 shares of company stock worth $12,143,923. 1.40% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Kroger

Several institutional investors have recently added to or reduced their stakes in the stock. Altshuler Shaham Ltd purchased a new stake in Kroger in the 2nd quarter valued at approximately $28,000. Northwest Investment Counselors LLC acquired a new position in Kroger during the third quarter worth $34,000. Newbridge Financial Services Group Inc. raised its position in Kroger by 218.8% in the second quarter. Newbridge Financial Services Group Inc. now owns 714 shares of the company’s stock worth $36,000 after acquiring an additional 490 shares in the last quarter. Harbor Capital Advisors Inc. acquired a new stake in Kroger in the third quarter valued at $40,000. Finally, Capital Performance Advisors LLP purchased a new stake in shares of Kroger during the 3rd quarter worth $43,000. Institutional investors and hedge funds own 80.93% of the company’s stock.

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.