The Kroger Co. (NYSE:KR) Receives Consensus Recommendation of “Moderate Buy” from Analysts

The Kroger Co. (NYSE:KR) has received an average recommendation of “Moderate Buy” from the nineteen ratings firms that are currently covering the company, MarketBeat.com reports. Nine research analysts have rated the stock with a hold rating and ten have given a buy rating to the company. The average 12-month target price among brokers that have updated their coverage on the stock in the last year is $72.00.

Several equities analysts have recently weighed in on KR shares. Wall Street Zen lowered shares of Kroger from a “buy” rating to a “hold” rating in a report on Saturday, June 20th. JPMorgan Chase & Co. decreased their target price on Kroger from $72.00 to $70.00 and set a “neutral” rating for the company in a research report on Thursday, June 11th. UBS Group set a $63.00 price target on Kroger and gave the stock a “neutral” rating in a research note on Monday, June 22nd. Telsey Advisory Group set a $78.00 price objective on Kroger and gave the company an “outperform” rating in a research note on Monday, June 22nd. Finally, Citigroup decreased their price objective on Kroger from $71.00 to $61.00 and set a “neutral” rating for the company in a report on Tuesday, June 23rd.

Kroger Price Performance

Kroger stock opened at $59.20 on Thursday. The stock has a market capitalization of $36.27 billion, a price-to-earnings ratio of 34.82, a PEG ratio of 1.57 and a beta of 0.44. Kroger has a 52-week low of $54.15 and a 52-week high of $76.58. The company has a debt-to-equity ratio of 2.43, a quick ratio of 0.39 and a current ratio of 0.79. The stock’s 50 day moving average price is $62.79 and its two-hundred day moving average price is $65.79.

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

Kroger Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 1st. Shareholders of record on Saturday, August 15th will be issued a dividend of $0.39 per share. The ex-dividend date is Friday, August 14th. This is a positive change from Kroger’s previous quarterly dividend of $0.35. This represents a $1.56 annualized dividend and a yield of 2.6%. Kroger’s dividend payout ratio is currently 82.35%.

Key Stories Impacting Kroger

Here are the key news stories impacting Kroger this week:

• Positive Sentiment: Kroger’s acquisition of Giant Eagle is being framed by analysts as a strategic move that could strengthen its market position and improve its competitive footing in grocery retail. Kroger’s planned $1.7B Giant Eagle acquisition is ‘a master stroke,’ analyst says
• Positive Sentiment: Kroger launched in-store wine shops with tasting bars at 147 locations, a move that may help lift traffic, basket sizes, and higher-margin specialty sales. Kroger launches in-store wine shops with tasting bars at 147 locations nationwide
• Positive Sentiment: Recent coverage highlighted Kroger as potentially undervalued after its pullback, especially with the Giant Eagle deal, buybacks, and a higher dividend supporting the investment case. Is Kroger (KR) Undervalued On Its Giant Eagle Deal And Recent Pullback?
• Neutral Sentiment: Kroger is also being discussed in connection with the planned sale of some Giant Eagle stores in Ohio, which is likely required to satisfy deal conditions and keep the transaction moving forward. Kroger to sell Giant Eagle stores in Ohio amid $1.65 billion deal
• Neutral Sentiment: A report on Kroger’s plastic bag policy at Giant Eagle stores suggests the company has not yet clarified operational details, but this does not appear material enough to drive the stock by itself. Will Kroger keep Giant Eagle’s plastic bag ban? Company silent on policy
• Negative Sentiment: The planned Giant Eagle deal also brings execution risk, including integration complexity and the need to divest some stores, which could temper enthusiasm if costs or regulatory hurdles rise. 5 things to know about the Kroger-Giant Eagle deal

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the business. Hennion & Walsh Asset Management Inc. raised its holdings in shares of Kroger by 1.8% in the 2nd quarter. Hennion & Walsh Asset Management Inc. now owns 65,002 shares of the company’s stock worth $3,610,000 after acquiring an additional 1,141 shares during the last quarter. Kwmg LLC boosted its stake in Kroger by 2.3% during the 2nd quarter. Kwmg LLC now owns 117,012 shares of the company’s stock valued at $6,498,000 after purchasing an additional 2,648 shares during the last quarter. Wynn Capital LLC increased its holdings in Kroger by 7.3% during the 2nd quarter. Wynn Capital LLC now owns 6,100 shares of the company’s stock worth $339,000 after purchasing an additional 414 shares in the last quarter. Czech National Bank increased its holdings in Kroger by 1.8% during the 2nd quarter. Czech National Bank now owns 161,457 shares of the company’s stock worth $8,966,000 after purchasing an additional 2,892 shares in the last quarter. Finally, PensionDanmark Pensionsforsikringsaktieselskab raised its stake in shares of Kroger by 30.1% in the second quarter. PensionDanmark Pensionsforsikringsaktieselskab now owns 169,114 shares of the company’s stock worth $9,391,000 after purchasing an additional 39,140 shares during the last quarter. 80.93% of the stock is currently owned by institutional investors and hedge funds.

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.