Kroger (NYSE:KR) Upgraded to Buy at Wall Street Zen

Wall Street Zen upgraded shares of Kroger (NYSE:KR) from a hold rating to a buy rating in a report released on Saturday,Wall Street Zen reports.

Several other analysts also recently commented on the stock. Roth Capital restated a “buy” rating and set a $73.00 price objective on shares of Kroger in a research report on Monday, September 14th. Melius Research set a $80.00 target price on shares of Kroger and gave the company a “buy” rating in a research note on Tuesday, September 29th. HC Wainwright reaffirmed a “buy” rating on shares of Kroger in a report on Thursday, July 2nd. Guggenheim reaffirmed a “buy” rating and issued a $68.00 target price (up from $66.00) on shares of Kroger in a report on Wednesday. Finally, Citigroup reiterated a “neutral” rating and issued a $57.00 price target (down from $61.00) on shares of Kroger in a research note on Tuesday, September 1st. Twelve research analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company’s stock. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $70.35.

Kroger Stock Performance

Shares of KR opened at $66.88 on Friday. The company has a quick ratio of 0.31, a current ratio of 0.70 and a debt-to-equity ratio of 2.59. The business has a 50-day simple moving average of $59.71 and a two-hundred day simple moving average of $61.44. The stock has a market cap of $39.50 billion, a price-to-earnings ratio of 36.35, a PEG ratio of 1.94 and a beta of 0.36. Kroger has a 52 week low of $54.15 and a 52 week high of $76.58.

Kroger (NYSE:KR) last posted its quarterly earnings data 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. The firm had revenue of $34.62 billion for the quarter, compared to analysts’ expectations of $34.64 billion. Kroger had a return on equity of 49.90% and a net margin of 0.73%. The business’s quarterly revenue was up 2.0% on a year-over-year basis. During the same period in the previous year, the firm earned $1.04 EPS. Kroger has set its FY 2026 guidance at 5.100-5.300 EPS. On average, analysts expect that Kroger will post 5.20 EPS for the current year.

Kroger Announces Dividend

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

Insider Activity at Kroger

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

Institutional Investors Weigh In On Kroger

Hedge funds have recently bought and sold shares of the business. BlackRock Inc. purchased a new position in shares of Kroger in the second quarter worth about $3,016,956,000. Legal & General Group Plc purchased a new stake in Kroger in the second quarter valued at approximately $284,501,000. Bank of New York Mellon Corp purchased a new stake in Kroger in the second quarter valued at approximately $195,234,000. Nykredit A S purchased a new stake in shares of Kroger in the 2nd quarter valued at $157,533,000. Finally, Deutsche Bank AG acquired a new stake in Kroger during the 2nd quarter worth about $119,723,000. Hedge funds and other institutional investors own 80.93% of the company’s stock.

Kroger News Summary

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

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.