For The Kroger Co. [KR], Analyst sees a rise to $48. What next?


The Kroger Co. [NYSE: KR] loss -0.15% or -0.07 points to close at $45.19 with a heavy trading volume of 5982281 shares. The company report on December 30, 2021 that Kroger Board of Directors Approves $1 Billion Share Repurchase Authorization.

The Kroger Co.’s (NYSE: KR) Board of Directors today authorized a new $1 billion share repurchase program, replacing the current authorization, which had approximately $157 million remaining as of December 29, 2021.

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“We are customer obsessed and focused on leading with fresh and accelerating with digital, which is building momentum in our business and will drive Kroger’s long-term success,” said Rodney McMullen, Kroger’s chairman and CEO. “Kroger’s share repurchase authorization reflects our Board of Directors’ confidence in the strength of our free cash flow and our ability to deliver consistently strong and attractive total shareholder returns.”.

It opened the trading session at $44.91, the shares rose to $45.215 and dropped to $44.52, the range by which the price of stock traded the whole day. The daily chart for KR points out that the company has recorded 20.80% gains over the past six months. However, it is still -43.78% lower than its most recent low trading price.

If we look at the average trading volume of 7.08M shares, KR reached to a volume of 5982281 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying about The Kroger Co. [KR]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for KR shares is $45.11 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on KR stock is a recommendation set at 2.80. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

UBS have made an estimate for The Kroger Co. shares, keeping their opinion on the stock as Neutral, with their previous recommendation back on December 03, 2021. While these analysts kept the previous recommendation, Telsey Advisory Group raised their target price from $45 to $47. The new note on the price target was released on December 03, 2021, representing the official price target for The Kroger Co. stock. Previously, the target price had yet another drop from $48 to $44, while MKM Partners kept a Neutral rating on KR stock. On December 03, 2021, analysts increased their price target for KR shares from 45 to 49.

The Average True Range (ATR) for The Kroger Co. is set at 1.28, with the Price to Sales ratio for KR stock in the period of the last 12 months amounting to 0.25. The Price to Book ratio for the last quarter was 3.52, with the Price to Cash per share for the same quarter was set at 3.05. Price to Free Cash Flow for KR in the course of the last twelve months was 14.55 with Quick ratio for the last quarter at 0.30.

Trading performance analysis for KR stock

The Kroger Co. [KR] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 3.32. With this latest performance, KR shares gained by 1.21% in over the last four-week period, additionally plugging by 20.80% over the last 6 months – not to mention a rise of 40.65% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for KR stock in for the last two-week period is set at 56.41, with the RSI for the last a single of trading hit 57.70, and the three-weeks RSI is set at 55.84 for The Kroger Co. [KR]. The present Moving Average for the last 50 days of trading for this stock 42.91, while it was recorded at 44.94 for the last single week of trading, and 40.44 for the last 200 days.

The Kroger Co. [KR]: A deeper dive into fundamental analysis

Operating Margin for any stock indicates how profitable investing would be, and The Kroger Co. [KR] shares currently have an operating margin of +2.29 and a Gross Margin at +21.25. The Kroger Co.’s Net Margin is presently recorded at +1.93.

Return on Total Capital for KR is now 10.15, given the latest momentum, and Return on Invested Capital for the company is 9.16. Return on Equity for this stock inclined to 28.12, with Return on Assets sitting at 5.14. When it comes to the capital structure of this company, The Kroger Co. [KR] has a Total Debt to Total Equity ratio set at 214.99. Additionally, KR Total Debt to Total Capital is recorded at 68.25, with Total Debt to Total Assets ending up at 39.86. Long-Term Debt to Equity for the company is recorded at 198.51, with the Long-Term Debt to Total Capital now at 63.02.

Reflecting on the efficiency of the workforce at the company, The Kroger Co. [KR] managed to generate an average of $5,497 per employee. Receivables Turnover for the company is 76.00 with a Total Asset Turnover recorded at a value of 2.66.The Kroger Co.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.30 and a Current Ratio set at 0.80.

The Kroger Co. [KR]: An earnings per share (EPS) analysis

The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for KR. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for The Kroger Co. go to 6.58%.

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An analysis of insider ownership at The Kroger Co. [KR]

There are presently around $27,069 million, or 83.20% of KR stock, in the hands of institutional investors. The top three institutional holders of KR stocks are: BLACKROCK INC. with ownership of 74,363,303, which is approximately -2.254% of the company’s market cap and around 0.70% of the total institutional ownership; VANGUARD GROUP INC, holding 67,453,738 shares of the stock with an approximate value of $3.05 billion in KR stocks shares; and BERKSHIRE HATHAWAY INC, currently with $2.8 billion in KR stock with ownership of nearly 0% of the company’s market capitalization.

Positions in The Kroger Co. stocks held by institutional investors increased at the end of December and at the time of the December reporting period, where 434 institutional holders increased their position in The Kroger Co. [NYSE:KR] by around 32,980,550 shares. Additionally, 424 investors decreased positions by around 53,779,110 shares, while 137 investors held positions by with 511,323,835 shares. The mentioned changes placed institutional holdings at 598,083,495 shares, according to the latest SEC report filing. KR stock had 99 new institutional investments in for a total of 6,969,637 shares, while 58 institutional investors sold positions of 1,128,279 shares during the same period.