Kroger (NYSE:KR) Reaches New 1-Year Low – Time to Sell?

The Kroger Co. (NYSE:KR)’s share price reached a new 52-week low during mid-day trading on Tuesday . The company traded as low as $55.32 and last traded at $55.37, with a volume of 252301 shares trading hands. The stock had previously closed at $55.91.

Key Headlines Impacting Kroger

Here are the key news stories impacting Kroger this week:

• Positive Sentiment: Kroger is expanding and revamping its rewards program, giving shoppers more ways to redeem points for groceries and fuel. That could help strengthen customer loyalty and support sales. Kroger Revamps Rewards Program: New Ways to Use Points for Groceries and Fuel
• Positive Sentiment: Kroger also launched an exclusive celebrity-branded product line aimed at drawing shoppers back to stores and making weekly grocery trips more appealing. Kroger rolls out exclusive celebrity line to win back shoppers
• Neutral Sentiment: Seasonal and coupon-related coverage highlighted Kroger’s promotional push around July 4th and digital savings, reinforcing that management is leaning on value offerings to attract budget-conscious shoppers.
• Negative Sentiment: Analyst sentiment remains a headwind, with Morgan Stanley reportedly maintaining an Equal Weight rating while cutting its price target to $67 from $73, which can weigh on investor confidence. Is The Kroger Co. (KR) One of the Best Stocks to Buy Now For Good Returns amid Price Target Cuts?
• Negative Sentiment: There was also a food-safety alert involving chicken sold at Kroger and Fred Meyer due to an undeclared allergen, which could create short-term reputational pressure even if the financial impact is limited. Check Your Freezer: Kroger and Fred Meyer Chicken May Contain Undeclared Allergen

Analyst Ratings Changes

KR has been the subject of a number of recent research reports. Erste Group Bank cut shares of Kroger from a “buy” rating to a “hold” rating in a research note on Monday, April 27th. BMO Capital Markets reaffirmed a “market perform” rating and issued a $70.00 price target on shares of Kroger in a report on Thursday, March 5th. JPMorgan Chase & Co. lowered their price target on shares of Kroger from $72.00 to $70.00 and set a “neutral” rating for the company in a report on Thursday, June 11th. Barclays set a $61.00 price target on Kroger and gave the stock an “equal weight” rating in a research report on Monday, June 22nd. Finally, Wall Street Zen downgraded Kroger from a “buy” rating to a “hold” rating in a research report on Saturday, June 20th. Nine analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the stock. Based on data from MarketBeat, Kroger currently has an average rating of “Moderate Buy” and an average target price of $71.94.

Kroger Price Performance

The firm has a market cap of $33.81 billion, a P/E ratio of 32.46, a PEG ratio of 1.55 and a beta of 0.43. The company has a debt-to-equity ratio of 2.43, a current ratio of 0.79 and a quick ratio of 0.39. The stock’s 50-day simple moving average is $64.22 and its two-hundred day simple moving average is $66.03.

Kroger (NYSE:KR) last released its earnings results on Thursday, June 18th. The company reported $1.58 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.59 by ($0.01). Kroger had a return on equity of 44.33% and a net margin of 0.71%.The firm had revenue of $46.12 billion during the quarter, compared to the consensus estimate of $45.59 billion. During the same quarter last year, the business posted $1.49 EPS. Kroger’s revenue was up 2.2% compared to the same quarter last year. Kroger has set its FY 2026 guidance at 5.100-5.30 EPS. Equities research analysts forecast that The Kroger Co. will post 5.22 earnings per share for the current fiscal year.

Kroger Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 1st. Shareholders of record on Saturday, August 15th will be paid a $0.39 dividend. The ex-dividend date of this dividend is Friday, August 14th. This is an increase from Kroger’s previous quarterly dividend of $0.35. This represents a $1.56 annualized dividend and a yield of 2.8%. Kroger’s payout ratio is 91.76%.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of KR. Connor Clark & Lunn Investment Management Ltd. increased its stake in Kroger by 45.5% in the 3rd quarter. Connor Clark & Lunn Investment Management Ltd. now owns 855,810 shares of the company’s stock worth $57,690,000 after buying an additional 267,434 shares during the period. American Century Companies Inc. boosted its position in Kroger by 16.2% in the 3rd quarter. American Century Companies Inc. now owns 2,063,474 shares of the company’s stock valued at $139,099,000 after buying an additional 287,755 shares during the period. Te Ahumairangi Investment Management Ltd grew its stake in Kroger by 18.1% in the 3rd quarter. Te Ahumairangi Investment Management Ltd now owns 150,356 shares of the company’s stock worth $10,135,000 after acquiring an additional 23,027 shares in the last quarter. JCP Investment Management LLC purchased a new position in shares of Kroger during the third quarter worth approximately $1,773,000. Finally, Allstate Corp increased its position in shares of Kroger by 108.5% during the fourth quarter. Allstate Corp now owns 47,991 shares of the company’s stock worth $2,998,000 after acquiring an additional 24,976 shares during the period. Institutional investors own 80.93% of the company’s stock.

Kroger Company Profile

The Kroger Co (NYSE: KR) is one of the largest supermarket operators in the United States, offering a wide range of retail grocery and related services. Founded in Cincinnati in 1883 by Bernard Kroger, the company operates a portfolio of supermarket and multi-department store banners and provides customers with fresh foods, packaged groceries, deli and bakery items, meat and seafood, produce, and prepared foods. Kroger’s stores commonly include pharmacy services and fuel centers, positioning the company as a broad-based neighborhood retail destination for everyday needs.

In addition to traditional in-store retailing, Kroger manufactures and distributes a variety of private-label brands and operates its own food production and supply-chain facilities.