Kroger Company (NYSE:KR) disclosed the termination of its merger agreement with Albertsons Companies, Inc. (NYSE:ACI) following a preliminary injunction by the U.S. District Court in Oregon.
Kroger's Board approved a new $7.5 billion share repurchase program, replacing the previous $1 billion authorization from September 2022.
The company plans to execute an accelerated share repurchase (ASR) agreement for about $5 billion of common stock. Kroger anticipates strong free cash flow and remains focused on capital allocation priorities. Following the termination of the merger agreement, Kroger will redeem $4.7 billion in senior notes issued on August 27, 2024.
Kroger shares gained 3.1% to trade at $63.20 on Thursday.
These analysts made changes to their price targets on Kroger following the announcement.
- Wells Fargo analyst Edward Kelly maintained Kroger with an Overweight and raised the price target from $70 to $73.
- BMO Capital analyst Kelly Bania maintained the stock with a Market Perform and raised the price target from $60 to $63.
- UBS analyst Michael Lasser maintained Kroger with a Neutral and raised the price target from $63 to $66.
Considering buying KR stock? Here's what analysts think:
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