L2 Asset Management LLC Buys New Stake in The Kroger Co. $KR

L2 Asset Management LLC purchased a new stake in The Kroger Co. (NYSE:KR) during the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor purchased 62,716 shares of the company’s stock, valued at approximately $3,483,000.

Several other hedge funds and other institutional investors also recently added to or reduced their stakes in KR. Vanguard Group Inc. grew its holdings in Kroger by 1.1% during the fourth quarter. Vanguard Group Inc. now owns 77,169,425 shares of the company’s stock worth $4,821,546,000 after acquiring an additional 868,529 shares during the period. BlackRock Inc. acquired a new position in Kroger in the second quarter valued at approximately $3,016,956,000. State Street Corp boosted its position in Kroger by 1.2% in the 3rd quarter. State Street Corp now owns 31,948,112 shares of the company’s stock worth $2,153,622,000 after purchasing an additional 386,503 shares in the last quarter. GQG Partners LLC boosted its position in Kroger by 11.3% in the 4th quarter. GQG Partners LLC now owns 13,398,072 shares of the company’s stock worth $837,113,000 after purchasing an additional 1,360,946 shares in the last quarter. Finally, Dimensional Fund Advisors LP grew its stake in shares of Kroger by 0.4% during the 1st quarter. Dimensional Fund Advisors LP now owns 12,296,026 shares of the company’s stock worth $889,878,000 after purchasing an additional 53,625 shares during the period. 80.93% of the stock is owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

Several equities analysts have recently weighed in on KR shares. Guggenheim reaffirmed a “buy” rating and set a $71.00 target price on shares of Kroger in a report on Thursday, July 2nd. Citigroup lowered their price target on shares of Kroger from $71.00 to $61.00 and set a “neutral” rating on the stock in a report on Tuesday, June 23rd. Barclays set a $61.00 price target on shares of Kroger and gave the company an “equal weight” rating in a research report on Monday, June 22nd. Telsey Advisory Group set a $78.00 price objective on shares of Kroger and gave the company an “outperform” rating in a report on Monday, June 22nd. Finally, Erste Group Bank downgraded shares of Kroger from a “buy” rating to a “hold” rating in a research report on Monday, April 27th. Ten investment analysts have rated the stock with a Buy rating and nine have given a Hold rating to the stock. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $72.00.

Key Stories Impacting Kroger

Here are the key news stories impacting Kroger this week:

• Positive Sentiment: Automation may improve operations: Kroger is rolling out inventory robots, a move that could increase in-stock availability, reduce labor-intensive inventory work and support margins over time. Kroger rolls out inventory robots
• Positive Sentiment: Grocery and prescription delivery expansion: Kroger and Instacart launched a service allowing customers to order groceries and eligible prescriptions together through Kroger’s websites and apps. The offering is available across nearly all Kroger banners, including Fred Meyer, Ralphs and Harris Teeter, potentially increasing digital engagement, order frequency and customer retention. Kroger Customers Can Shop for Groceries and Prescriptions in a Single Order
• Positive Sentiment: Pharmacy product test: Promino secured a test of its Rejuvenate Muscle Health product in 662 Kroger pharmacies. While the financial impact on Kroger is not disclosed, the program could modestly broaden pharmacy offerings and support related customer traffic. Promino Secures 662-Store Kroger Pharmacy Test

Kroger Stock Up 2.0%

Kroger stock opened at $59.06 on Tuesday. The stock has a market capitalization of $36.18 billion, a PE ratio of 34.74, a price-to-earnings-growth ratio of 1.55 and a beta of 0.43. The Kroger Co. has a 12 month low of $54.15 and a 12 month high of $76.58. The business has a 50 day simple moving average of $57.78 and a 200-day simple moving average of $64.69. The company has a debt-to-equity ratio of 2.43, a current ratio of 0.79 and a quick ratio of 0.39.

Kroger (NYSE:KR) last announced its earnings results on Thursday, June 18th. The company reported $1.58 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.59 by ($0.01). Kroger had a net margin of 0.71% and a return on equity of 44.33%. The business had revenue of $46.12 billion for the quarter, compared to analysts’ expectations of $45.59 billion. During the same quarter last year, the business earned $1.49 EPS. The company’s quarterly revenue was up 2.2% on a year-over-year basis. Kroger has set its FY 2026 guidance at 5.100-5.30 EPS. On average, analysts anticipate that The Kroger Co. will post 5.21 EPS for the current fiscal year.

Kroger Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 1st. Shareholders of record on Saturday, August 15th will be given a dividend of $0.39 per share. This is a boost from Kroger’s previous quarterly dividend of $0.35. This represents a $1.56 dividend on an annualized basis and a yield of 2.6%. The ex-dividend date is Friday, August 14th. Kroger’s dividend payout ratio (DPR) is currently 91.76%.

About Kroger

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.