The Kroger Co. $KR Stock: Townsend & Associates Inc Boosts Position

Townsend & Associates Inc raised its holdings in The Kroger Co. (NYSE:KR) by 3.4% during the third quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor owned 230,529 shares of the company’s stock after purchasing an additional 7,621 shares during the period. Townsend & Associates Inc’s holdings in Kroger were worth $14,669,000 as of its most recent SEC filing.

Several other institutional investors and hedge funds also recently made changes to their positions in KR. BlackRock Inc. bought a new position in Kroger during the 2nd quarter valued at $3,016,956,000. Dimensional Fund Advisors LP increased its position in shares of Kroger by 0.4% in 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 last quarter. Bank of America Corp DE increased its position in shares of Kroger by 17.0% in the 1st quarter. Bank of America Corp DE now owns 6,041,028 shares of the company’s stock worth $437,129,000 after purchasing an additional 876,168 shares during the last quarter. Legal & General Group Plc acquired a new stake in shares of Kroger in the 2nd quarter valued at about $284,501,000. Finally, Amundi raised its stake in shares of Kroger by 17.9% in the 1st quarter. Amundi now owns 3,332,191 shares of the company’s stock valued at $241,116,000 after purchasing an additional 506,776 shares in the last quarter. 80.93% of the stock is currently owned by hedge funds and other institutional investors.

More Kroger News

Here are the key news stories impacting Kroger this week:

• Positive Sentiment: Kroger plans to open approximately 110 new stores, lower prices, expand digital capabilities and modernize operations. Management also aims to grow its private-label business to roughly $5 billion, potentially supporting customer retention and higher-margin sales. Kroger Details Growth Strategy to Open 110 Stores, Expand Own Brand to $5B, Modernize Operations
• Positive Sentiment: The proposed savings program could improve efficiency and help fund lower prices without relying entirely on sales growth. Planned savings include operational modernization and greater use of technology and artificial intelligence. Kroger’s $4B savings—a closer look
• Positive Sentiment: New-store development, including a location with a pharmacy and fuel center in Hockley, Texas, indicates continued investment in Kroger’s physical footprint and customer ecosystem. Kroger to break ground on new store with pharmacy and fuel center in Hockley
• Neutral Sentiment: Sell-side analysts continue to show a generally constructive view, with KR receiving a “Moderate Buy” rating; however, the rating does not eliminate concerns about the plan’s execution. The Kroger Co. Stock Rated Moderate Buy
• Negative Sentiment: Management acknowledged that Kroger has lost market share to Walmart and Costco. Cutting prices while funding a major investment program may pressure near-term margins, particularly if the projected savings take longer to materialize. Kroger Is Spending $5 Billion to Cut Prices
• Negative Sentiment: The strategy involves substantial operational change, including corporate job reductions and reliance on AI. Investors may be concerned about execution risk, employee disruption and whether lower prices will generate enough traffic to offset investment costs. 5 big numbers from Kroger’s Investor Day

Analyst Upgrades and Downgrades

Several equities analysts have recently commented on KR shares. Deutsche Bank Aktiengesellschaft reaffirmed a “buy” rating and set a $70.00 price target on shares of Kroger in a research report on Wednesday. Evercore set a $70.00 price objective on Kroger in a report on Monday, September 14th. HC Wainwright restated a “buy” rating on shares of Kroger in a research note on Thursday, July 2nd. Wells Fargo & Company set a $60.00 target price on Kroger and gave the stock an “equal weight” rating in a report on Wednesday. Finally, Roth Capital reaffirmed a “buy” rating and set a $73.00 target price on shares of Kroger in a report on Monday, September 14th. Twelve investment analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company’s stock. According to data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $70.35.

Kroger Price Performance

Shares of NYSE:KR opened at $66.88 on Monday. The firm’s 50 day moving average is $59.71 and its two-hundred day moving average is $61.36. The Kroger Co. has a 52 week low of $54.15 and a 52 week high of $76.58. The firm has a market capitalization of $39.50 billion, a P/E ratio of 36.35, a PEG ratio of 1.88 and a beta of 0.36. The company has a current ratio of 0.70, a quick ratio of 0.31 and a debt-to-equity ratio of 2.59.

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

Kroger Dividend Announcement

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

Insider Activity

In related news, EVP Mary Adcock sold 72,901 shares of Kroger stock in a transaction dated 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 in the company, valued at $10,636,643.10. The trade was a 29.38% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Insiders own 0.41% of the company’s stock.

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.