Erste Group Bank Decreases Earnings Estimates for Kroger

The Kroger Co. (NYSE:KR) – Erste Group Bank reduced their FY2027 earnings per share (EPS) estimates for Kroger in a report released on Thursday, June 25th. Erste Group Bank analyst H. Engel now anticipates that the company will post earnings of $5.20 per share for the year, down from their previous forecast of $5.24. Erste Group Bank currently has a “Hold” rating on the stock. The consensus estimate for Kroger’s current full-year earnings is $5.22 per share. Erste Group Bank also issued estimates for Kroger’s FY2028 earnings at $5.50 EPS.

Kroger (NYSE:KR) last announced its quarterly 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 company had revenue of $46.12 billion during the quarter, compared to analysts’ expectations of $45.59 billion. During the same quarter in the prior year, the business posted $1.49 earnings per share. The company’s revenue was up 2.2% compared to the same quarter last year. Kroger has set its FY 2026 guidance at 5.100-5.30 EPS.

Several other equities analysts also recently issued reports on the stock. 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. Wall Street Zen cut shares of Kroger from a “buy” rating to a “hold” rating in a research note on Saturday, June 20th. Royal Bank Of Canada reissued an “outperform” rating on shares of Kroger in a research report on Monday, June 1st. Roth Mkm restated a “buy” rating and set a $78.00 price target (up from $75.00) on shares of Kroger in a research note on Friday, March 6th. Finally, Citigroup decreased their price target on shares of Kroger from $71.00 to $61.00 and set a “neutral” rating for the company in a report on Tuesday, June 23rd. Nine analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the company. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $71.94.

Kroger Price Performance

NYSE KR opened at $55.52 on Wednesday. The firm’s fifty day simple moving average is $63.97 and its two-hundred day simple moving average is $65.99. The firm has a market capitalization of $34.02 billion, a P/E ratio of 32.66, a P/E/G ratio of 1.50 and a beta of 0.42. The company has a current ratio of 0.79, a quick ratio of 0.39 and a debt-to-equity ratio of 2.43. Kroger has a 12-month low of $54.97 and a 12-month high of $76.58.

Kroger Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, September 1st. Stockholders of record on Saturday, August 15th will be issued a dividend of $0.39 per share. This is a positive change from Kroger’s previous quarterly dividend of $0.35. The ex-dividend date of this dividend is Friday, August 14th. This represents a $1.56 annualized dividend and a dividend yield of 2.8%. Kroger’s payout ratio is presently 82.35%.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in KR. Vanguard Group Inc. increased its stake in shares of Kroger by 1.1% in the 4th quarter. Vanguard Group Inc. now owns 77,169,425 shares of the company’s stock valued at $4,821,546,000 after purchasing an additional 868,529 shares in the last quarter. Wellington Management Group LLP boosted its position in Kroger by 61.1% during the third quarter. Wellington Management Group LLP now owns 33,367,551 shares of the company’s stock worth $2,249,307,000 after purchasing an additional 12,652,261 shares in the last quarter. State Street Corp boosted its position in Kroger by 1.2% during the third 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 grew its holdings in Kroger by 11.3% in the fourth quarter. GQG Partners LLC now owns 13,398,072 shares of the company’s stock valued at $837,113,000 after purchasing an additional 1,360,946 shares during the period. Finally, Dimensional Fund Advisors LP grew its holdings in Kroger by 0.4% in the first quarter. Dimensional Fund Advisors LP now owns 12,296,026 shares of the company’s stock valued at $889,878,000 after purchasing an additional 53,625 shares during the period. Hedge funds and other institutional investors own 80.93% of the company’s stock.

Kroger News Roundup

Here are the key news stories impacting Kroger this week:

• Positive Sentiment: Kroger is expanding its rewards program, adding new ways for shoppers to use points on groceries and fuel, which could help retain customers and support traffic. Kroger Revamps Rewards Program: New Ways to Use Points for Groceries and Fuel
• Positive Sentiment: The company is also promoting exclusive and seasonal offerings, including a celebrity-inspired line and Fourth of July products, which may help boost basket size and differentiate Kroger from rivals. Kroger rolls out exclusive celebrity line to win back shoppers
• Neutral Sentiment: Several articles highlighted Kroger as a long-standing, Buffett-associated consumer staple name and a potential value idea, but these are mostly commentary pieces rather than new business catalysts. The Kroger Co. (KR) Is One Of The Oldest Stocks In Warren Buffett’s Berkshire Hathaway’s Holdings
• Neutral Sentiment: Analyst coverage remains cautious: Morgan Stanley reportedly kept an Equal Weight rating and lowered its price target, which reinforces sentiment that upside may be limited near term. Is The Kroger Co. (KR) One of the Best Stocks to Buy Now For Good Returns amid Price Target Cuts?
• Negative Sentiment: Kroger was tied to a chicken product recall/allergen warning and a separate report showed the stock falling about 3.1%, both of which can weigh on investor sentiment. Check Your Freezer: Kroger and Fred Meyer Chicken May Contain Undeclared Allergen The Kroger Co (KR) Shares Fall 3.1% — What GF Score of 79 Tells Investors

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.