Kroger (NYSE: KR) recently announced a significant $5 billion accelerated share repurchase (ASR) program, impacting Kroger Stock Price Today. This move is part of a larger $7.5 billion share repurchase authorization, funded by existing cash reserves. This article will delve into the details of the ASR agreement and its potential implications for investors interested in the Kroger stock price today.
Kroger’s Accelerated Share Repurchase Program: Key Details
The ASR agreements were established with Wells Fargo Bank, National Association and Citibank, N.A. Kroger will initially receive approximately 65.6 million shares on December 20, 2024. This represents roughly 80% of the total shares that could be repurchased with the $5 billion allocation, based on the December 19, 2024 closing price of Kroger stock.
The final number of repurchased shares will be determined by the volume-weighted average price of Kroger common stock over specific dates during the ASR agreement term, less a discount. Adjustments may apply based on the terms and conditions outlined in the agreements. Final settlement is expected no later than the third fiscal quarter of Kroger’s Fiscal 2025.
Impact on Kroger Stock and Future Repurchases
This $5 billion ASR program leaves $2.5 billion remaining under Kroger’s current share repurchase authorization. This suggests the potential for further buybacks in the future, which could influence Kroger stock price today and in the coming months. These ongoing repurchases underscore Kroger’s commitment to returning value to shareholders.
About Kroger
The Kroger Co. (NYSE: KR) is a major American retailer dedicated to “Feeding the Human Spirit.” With almost 420,000 associates, Kroger serves over 11 million customers daily through a combination of digital platforms and physical stores under various banner names. The company focuses on food inspiration, community uplift, and strives to create #ZeroHungerZeroWaste communities.
Forward-Looking Statements and Disclaimer
This announcement includes forward-looking statements regarding Kroger’s financial position, the ASR program, and future performance. These statements are based on current management assumptions and beliefs and are subject to uncertainties and market fluctuations that may cause actual results to differ. Factors influencing these potential differences include the timing and delivery of Kroger stock, market volatility, and other risks detailed in Kroger’s SEC filings. Investors should consult these filings for a comprehensive understanding of the risks associated with investing in Kroger stock. Kroger assumes no obligation to update these statements unless legally required.
Conclusion: Monitoring Kroger Stock Price Today
The $5 billion ASR program announced by Kroger is a significant development for investors following Kroger stock price today. While the final impact remains to be seen, the move signals a commitment to shareholder value and may influence future stock performance. Investors should continue to monitor Kroger’s performance and SEC filings for further updates.
