Wellington Management Group LLP Increases Kroger Stake Significantly

Wellington Management Group LLP significantly increased its investment in The Kroger Co. (NYSE:KR) during the third quarter. According to its latest filing with the Securities and Exchange Commission (SEC), the firm raised its stake by 11,570.7%, resulting in ownership of 2,729,788 shares after acquiring an impressive 2,706,398 additional shares during this period. At the close of the last reporting period, Wellington Management Group LLP held a 0.38% stake in Kroger, valued at approximately $156.4 million.

Recent Institutional Investments in Kroger

Other hedge funds and institutional investors have also made recent changes to their positions in Kroger. For instance, Altshuler Shaham Ltd established a new investment in Kroger during the second quarter, valued at $28,000. Northwest Investment Counselors LLC and Harbor Capital Advisors Inc. also acquired new stakes valued at $34,000 and $40,000, respectively, during the third quarter. Newbridge Financial Services Group Inc. increased its position in Kroger by 218.8% in the second quarter, accumulating 714 shares worth roughly $36,000 after adding 490 shares in the last quarter. Furthermore, Capital Performance Advisors LLP also made a new investment in Kroger, valued at about $43,000. Currently, institutional investors and hedge funds collectively own about 80.93% of Kroger's stock.

Insider Trading Events

In recent insider transactions, Vice President Brian W. Nichols sold 6,922 shares of Kroger on October 7th at an average price of $55.80, bringing in a total of approximately $386,247.60. After the sale, Nichols now owns 14,063 shares, valued at around $784,715.40, which reflects a 32.99% decrease in his holdings. Additionally, VP Carin L. Fike sold 3,010 shares on September 17th at an average price of $55.57, totaling about $167,265.70. Following this transaction, Fike holds 47,593 shares valued at roughly $2.64 million, marking a 5.95% decline in her stake. In total, insiders sold 12,932 shares valued at approximately $721,243 over the last quarter, with insiders holding 1.40% of the company's stock.

Kroger Stock Performance

The stock price of Kroger recently opened at $59.23. Currently, its 50-day moving average price stands at $57.81, while its 200-day moving average price is $54.62. Over the past 12 months, Kroger's stock has reached a low of $43.51 and a high of $61.37, and the company now boasts a market capitalization of approximately $42.85 billion. In terms of financial metrics, Kroger has a price-to-earnings (PE) ratio of 15.67 and a price-to-earnings growth (PEG) ratio of 0.93, along with a beta of 0.48. The current ratio is at 0.87, the quick ratio is 0.46, and the debt-to-equity ratio stands at 0.96.

Earnings Report and Dividend Announcement

Kroger reported its quarterly earnings on December 5th, revealing an earnings per share (EPS) of $0.98, surpassing analysts' predictions of $0.97 by $0.01. The total revenue for the quarter was $33.63 billion, slightly below the expected $34.19 billion. Kroger's return on equity for the reporting period was 28.54%, with a net margin of 1.86%, although quarterly revenue showed a slight decline of 1.0% compared to the same quarter in the previous year. The consensus estimate for Kroger's EPS this year is projected at 4.45.

Moreover, Kroger has declared a quarterly dividend that was paid out on December 1st. Shareholders on record as of November 15th received a dividend of $0.32 per share, leading to an annualized dividend total of $1.28, representing a yield of 2.16%. The ex-dividend date was also set on November 15th, with a current dividend payout ratio at 33.86%.

Analyst Ratings and Price Projections

Multiple analysts have reviewed Kroger's stock recently. Telsey Advisory Group reaffirmed an "outperform" rating and set a target price of $65.00 for Kroger shares. Conversely, BMO Capital Markets downgraded the rating from "outperform" to "market perform" with a price target of $60.00. BNP Paribas began coverage with a "neutral" rating and a price objective of $56.00, while Jefferies Financial Group upgraded Kroger from a "hold" to a "buy" rating, raising their price target significantly from $54.00 to $73.00. Evercore ISI also improved their price target from $62.00 to $63.00 with an "outperform" rating. Overall, five analysts have rated Kroger with a hold rating, eight have given it a buy rating, and one has assigned a strong buy rating. Market consensus suggests a "Moderate Buy" rating and an average target price of $63.33.

About The Kroger Co.

The Kroger Co. is a major food and drug retailer operating within the United States. It offers a mix of food and drug stores, multi-department stores, marketplace stores, and price impact warehouses. Kroger’s stores feature sections for natural and organic foods, pharmacies, general merchandise, and fresh produce, among other offerings.

Kroger, Investment, Trading