Howard Capital Management Inc. Decreases Stake in The Kroger Co. (NYSE:KR)

Howard Capital Management Inc. reduced its position in The Kroger Co. (NYSE:KR) by 5.6% in the fourth quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 73,199 shares of the company’s stock after selling 4,341 shares during the period. Howard Capital Management Inc.’s holdings in Kroger were worth $4,476,000 at the end of the most recent quarter.

Other institutional investors and hedge funds also recently added to or reduced their stakes in the company. Board of the Pension Protection Fund purchased a new position in Kroger in the 4th quarter valued at about $1,113,000. Nordea Investment Management AB lifted its position in shares of Kroger by 3.8% during the fourth quarter. Nordea Investment Management AB now owns 4,052,534 shares of the company’s stock worth $249,717,000 after purchasing an additional 148,221 shares during the last quarter. Charles Schwab Investment Management Inc. lifted its position in shares of Kroger by 1.1% during the third quarter. Charles Schwab Investment Management Inc. now owns 4,890,887 shares of the company’s stock worth $280,248,000 after purchasing an additional 53,006 shares during the last quarter. Sumitomo Mitsui Trust Group Inc. lifted its position in shares of Kroger by 1.7% during the third 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. Finally, World Investment Advisors LLC bought a new position in shares of Kroger during the third quarter worth about $566,000. 80.93% of the stock is owned by hedge funds and other institutional investors.

Kroger Price Performance

Shares of NYSE:KR opened at $65.03 on Friday. The firm’s 50 day moving average is $61.77 and its two-hundred day moving average is $58.23. The Kroger Co. has a 52 week low of $46.96 and a 52 week high of $66.18. The firm has a market capitalization of $47.05 billion, a P/E ratio of 17.20, a PEG ratio of 2.85 and a beta of 0.47. 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 (NYSE:KR) last announced its quarterly earnings results on Thursday, December 5th. The company reported $0.98 EPS for the quarter, beating the consensus estimate of $0.97 by $0.01. Kroger had a net margin of 1.85% and a return on equity of 27.73%. The company had revenue of $33.63 billion for the quarter, compared to analyst estimates of $34.19 billion. During the same quarter last year, the business earned $0.95 earnings per share. Kroger’s revenue was down 1.0% compared to the same quarter last year. Analysts anticipate that The Kroger Co. will post 4.44 earnings per share for the current year.

Kroger Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Saturday, March 1st. Investors of record on Friday, February 14th will be paid a dividend of $0.32 per share. The ex-dividend date is Friday, February 14th. This represents a $1.28 dividend on an annualized basis and a dividend yield of 1.97%. Kroger’s dividend payout ratio is presently 33.86%.

Kroger declared that its board has initiated a stock buyback program on Wednesday, December 11th that allows the company to repurchase $7.50 billion in outstanding shares. This repurchase authorization allows the company to reacquire up to 16.9% of its stock through open market purchases. Stock repurchase programs are typically an indication that the company’s board believes its stock is undervalued.

Wall Street Analyst Weigh In

Several equities analysts have recently commented on the stock. Wells Fargo & Company increased their price target on shares of Kroger from $70.00 to $73.00 and gave the stock an “overweight” rating in a research report on Thursday, December 12th. Telsey Advisory Group increased their price target on shares of Kroger from $70.00 to $73.00 and gave the stock an “outperform” rating in a research report on Thursday, February 13th. The Goldman Sachs Group reaffirmed a “buy” rating and set a $70.00 price target on shares of Kroger in a research report on Tuesday, February 4th. JPMorgan Chase & Co. increased their price target on shares of Kroger from $69.00 to $71.00 and gave the stock an “overweight” rating in a research report on Monday, January 6th. Finally, BMO Capital Markets increased their price target on shares of Kroger from $60.00 to $63.00 and gave the stock a “market perform” rating in a research report on Thursday, December 12th. Seven investment analysts have rated the stock with a hold rating, ten have assigned a buy rating and one has issued a strong buy rating to the company’s stock. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $67.19.

Insider Activity at Kroger

In related news, SVP Yael Cosset sold 20,000 shares of the firm’s stock in a transaction that occurred on Tuesday, December 10th. The shares were 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 owns 144,620 shares in the company, valued at $8,444,361.80. This trade represents a 12.15 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO Todd A. Foley sold 16,932 shares of the firm’s stock in a transaction that occurred on 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 transaction, the chief financial officer now owns 53,782 shares in the company, valued at $3,304,366.08. This represents a 23.94 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 195,448 shares of company stock worth $12,143,923 over the last quarter. 1.40% of the stock is currently owned by company insiders.

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.