Kroger (NYSE:KR) Stock Moved Down to Hold by Wall Street Zen

Wall Street Zen downgraded shares of Kroger (NYSE:KR) from a buy rating to a hold rating in a report issued on Sunday,Wall Street Zen reports.

A number of other analysts also recently weighed in on KR. Guggenheim reissued a “buy” rating and set a $68.00 price target (up from $66.00) on shares of Kroger in a research report on Wednesday, October 21st. Evercore set a $70.00 price target on Kroger in a report on Monday, September 14th. Wells Fargo & Company set a $60.00 price target on Kroger and gave the stock an “equal weight” rating in a research report on Wednesday, October 21st. Telsey Advisory Group decreased their price objective on shares of Kroger from $78.00 to $75.00 and set an “outperform” rating on the stock in a research note on Monday, September 14th. Finally, BNP Paribas Exane upgraded Kroger from a “neutral” rating to an “outperform” rating and set a $72.00 price target on the stock in a report on Wednesday, October 7th. Twelve investment analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of $70.35.

Kroger Stock Performance

Shares of Kroger stock opened at $66.73 on Friday. The firm has a market capitalization of $39.41 billion, a P/E ratio of 36.27, a PEG ratio of 1.88 and a beta of 0.36. Kroger has a 52 week low of $54.15 and a 52 week high of $76.58. The company has a 50 day moving average price of $60.63 and a 200 day moving average price of $63.59. The company has a quick ratio of 0.31, a current ratio of 0.70 and a debt-to-equity ratio of 2.59.

Kroger (NYSE:KR) last released its quarterly earnings data on Friday, September 11th. The company reported $1.09 earnings per share for the quarter, topping analysts’ consensus estimates of $1.05 by $0.04. The company had revenue of $34.62 billion for the quarter, compared to analyst estimates of $34.64 billion. Kroger had a return on equity of 49.90% and a net margin of 0.73%. The firm’s revenue for the quarter was up 2.0% compared to the same quarter last year. During the same quarter in the previous year, the company posted $1.04 earnings per share. Kroger has set its FY 2026 guidance at 5.100-5.300 EPS. Sell-side analysts expect that Kroger will post 5.20 EPS for the current year.

Kroger Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 1st. Shareholders of record on Monday, November 16th will be given a $0.39 dividend. This represents a $1.56 annualized dividend and a yield of 2.3%. The ex-dividend date of this dividend is Monday, November 16th. Kroger’s payout ratio is 84.78%.

Insider Buying and Selling at Kroger

In related news, EVP Mary Adcock sold 72,901 shares of the stock in a transaction on Friday, September 18th. The shares were sold at an average price of $60.70, for a total transaction of $4,425,090.70. Following the sale, the executive vice president directly owned 175,233 shares of the company’s stock, valued at approximately $10,636,643.10. This represents a 29.38% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. 0.41% of the stock is owned by company insiders.

Hedge Funds Weigh In On Kroger

A number of institutional investors have recently modified their holdings of KR. BlackRock Inc. purchased a new stake in shares of Kroger in the second quarter valued at about $3,016,956,000. Dimensional Fund Advisors LP increased its stake in shares of Kroger by 0.4% during the first quarter. Dimensional Fund Advisors LP now owns 12,296,026 shares of the company’s stock valued at $889,878,000 after acquiring an additional 53,625 shares during the period. Bank of America Corp DE boosted its position in Kroger by 17.0% during the first quarter. Bank of America Corp DE now owns 6,041,028 shares of the company’s stock valued at $437,129,000 after purchasing an additional 876,168 shares during the last quarter. Legal & General Group Plc bought a new position in shares of Kroger in the second quarter worth about $284,501,000. Finally, Amundi lifted its holdings in shares of Kroger by 18.3% during the 2nd quarter. Amundi now owns 3,942,230 shares of the company’s stock worth $218,912,000 after acquiring an additional 610,039 shares during the period. 80.93% of the stock is owned by institutional investors and hedge funds.

Key Stories Impacting Kroger

Here are the key news stories impacting Kroger this week:

• Positive Sentiment: Kroger plans to invest approximately $5 billion through 2029 to lower everyday prices and simplify promotions. Management also expects e-commerce to eventually represent about 30% of sales, potentially strengthening customer traffic and digital growth. Kroger Says It Will Spend $5 Billion Through 2029 Lowering Prices
• Positive Sentiment: The company is accelerating direct sourcing to improve cost visibility and control, which could support margins over time despite the near-term expense of lower prices. Kroger Accelerates Direct Sourcing Efforts
• Positive Sentiment: Unusually heavy call-option activity indicates increased bullish speculative interest: 36,862 calls traded, compared with typical volume of about 15,056. This is a sentiment indicator rather than a change to Kroger’s fundamentals.
• Neutral Sentiment: Kroger agreed to acquire Giant Eagle in a proposed $1.65 billion cash-and-stock transaction. Combining loyalty programs, pharmacy records and digital platforms could create data and operating synergies, but privacy concerns surrounding purchasing, behavioral and location data may increase regulatory and reputational risk. Kroger Just Put $1.65 Billion Behind a Data Privacy Test
• Negative Sentiment: Kroger and Albertsons are concluding witness testimony in Delaware litigation over their failed merger. The case could result in additional costs or damages and keeps scrutiny on Kroger’s prior consolidation strategy. Albertsons and Kroger Fighting in Court Over Failed Merger
• Negative Sentiment: Albertsons is promoting a lower-cost annual membership program, potentially intensifying competition for value-conscious grocery shoppers alongside Walmart and Amazon. Albertsons Has a New Advantage for Grocery Shoppers

Kroger Company Profile

The Kroger Co is a U.S. food and grocery retailer headquartered in Cincinnati, Ohio. Founded by Bernard Kroger in 1883, the company operates supermarkets under banners that include Kroger, Ralphs, Fred Meyer, King Soopers, Fry’s, Harris Teeter and Smith’s, among others.

Kroger’s business includes the sale of fresh food, groceries, general merchandise, household products and health and beauty items. Many of its stores also provide pharmacy services and fuel centers. The company offers digital shopping, pickup and delivery services, loyalty programs and a range of private-label products, including Simple Truth, Private Selection and Kroger-branded products.

Kroger primarily serves customers across the United States, with stores concentrated in the Midwest, South, West and parts of the Mid-Atlantic region.