Kroger (NYSE:KR) Downgraded by Wall Street Zen to "Hold"

Key Points

• Wall Street Zen downgraded Kroger from “Buy” to “Hold,” although broader analyst sentiment remains “Moderate Buy,” with 12 Buy ratings, nine Holds, and a consensus price target of $70.35.
• Kroger shares opened at $66.73, while the company recently reported quarterly EPS of $1.09, exceeding the $1.05 consensus estimate. Management projects fiscal 2026 EPS of $5.10–$5.30.
• The company plans to invest approximately $5 billion through 2029 to lower prices and expand digital sales, but faces risks from the proposed Giant Eagle acquisition, litigation related to the failed Albertsons merger, and heightened grocery competition.

Kroger (NYSE:KR - Get Free Report) was downgraded by research analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a report issued on Sunday, Wall Street Zen reports.

Several other equities research analysts also recently commented on KR. Weiss Ratings reiterated a "hold (c)" rating on shares of Kroger in a report on Monday, September 14th. Melius Research set a $80.00 price target on Kroger and gave the stock a "buy" rating in a report on Tuesday, September 29th. Wells Fargo & Company set a $60.00 price target on Kroger and gave the stock an "equal weight" rating in a report on Wednesday, October 21st. Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating and issued a $70.00 price objective on shares of Kroger in a research report on Wednesday, October 21st. Finally, Roth Capital reiterated a "buy" rating and set a $73.00 price objective on shares of Kroger in a research note on Monday, September 14th. Twelve research analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company. According to MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $70.35.

Kroger Stock Up 1.2%

Shares of Kroger stock opened at $66.73 on Friday. The company has a fifty day moving average price of $60.63 and a 200 day moving average price of $63.59. 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 has a twelve month low of $54.15 and a twelve month high of $76.58. The stock has a market cap of $39.41 billion, a price-to-earnings ratio of 36.27, a price-to-earnings-growth ratio of 1.88 and a beta of 0.36.

Kroger (NYSE:KR - Get Free Report) last released its quarterly earnings data on Friday, September 11th. The company reported $1.09 EPS for the quarter, beating the consensus estimate of $1.05 by $0.04. The company had revenue of $34.62 billion for the quarter, compared to analyst estimates of $34.64 billion. Kroger had a return on equity of 49.90% and a net margin of 0.73%. The firm's revenue was up 2.0% compared to the same quarter last year. During the same period last year, the company posted $1.04 earnings per share. Kroger has set its FY 2026 guidance at 5.100-5.300 EPS. Equities research analysts forecast that Kroger will post 5.20 earnings per share for the current fiscal year.

Insider Activity at Kroger

In related news, EVP Mary Adcock sold 72,901 shares of the stock in a transaction dated Friday, September 18th. The stock was 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 owned 175,233 shares of the company's stock, valued at approximately $10,636,643.10. This represents a 29.38% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this link. Company insiders own 0.41% of the company's stock.

Institutional Investors Weigh In On Kroger

Hedge funds and other institutional investors have recently bought and sold shares of the business. Pathway Financial Advisers LLC purchased a new stake in shares of Kroger in the third quarter valued at $57,000. Chicago Partners Investment Group LLC acquired a new stake in shares of Kroger in the third quarter worth $374,000. Ascent Group LLC grew its holdings in shares of Kroger by 27.5% during the third quarter. Ascent Group LLC now owns 29,665 shares of the company's stock valued at $1,739,000 after buying an additional 6,390 shares in the last quarter. Caldwell Trust Co grew its holdings in shares of Kroger by 7.8% during the third quarter. Caldwell Trust Co now owns 34,765 shares of the company's stock valued at $2,038,000 after buying an additional 2,504 shares in the last quarter. Finally, Rakuten Investment Management Inc. grew its stake in Kroger by 10.0% during the 3rd quarter. Rakuten Investment Management Inc. now owns 101,071 shares of the company's stock valued at $6,144,000 after acquiring an additional 9,209 shares in the last quarter. 80.93% of the stock is currently owned by hedge funds and other institutional investors.

Key Headlines Impacting Kroger

Here are the key news stories impacting Kroger this week:

• Positive Sentiment: Kroger plans to invest approximately $5 billion through 2029 to lower everyday prices and simplify promotions. Management also expects e-commerce to eventually represent about 30% of sales, potentially strengthening customer traffic and digital growth. Kroger Says It Will Spend $5 Billion Through 2029 Lowering Prices
• Positive Sentiment: The company is accelerating direct sourcing to improve cost visibility and control, which could support margins over time despite the near-term expense of lower prices. Kroger Accelerates Direct Sourcing Efforts
• Positive Sentiment: Unusually heavy call-option activity indicates increased bullish speculative interest: 36,862 calls traded, compared with typical volume of about 15,056. This is a sentiment indicator rather than a change to Kroger’s fundamentals.
• Neutral Sentiment: Kroger agreed to acquire Giant Eagle in a proposed $1.65 billion cash-and-stock transaction. Combining loyalty programs, pharmacy records and digital platforms could create data and operating synergies, but privacy concerns surrounding purchasing, behavioral and location data may increase regulatory and reputational risk. Kroger Just Put $1.65 Billion Behind a Data Privacy Test
• Negative Sentiment: Kroger and Albertsons are concluding witness testimony in Delaware litigation over their failed merger. The case could result in additional costs or damages and keeps scrutiny on Kroger’s prior consolidation strategy. Albertsons and Kroger Fighting in Court Over Failed Merger
• Negative Sentiment: Albertsons is promoting a lower-cost annual membership program, potentially intensifying competition for value-conscious grocery shoppers alongside Walmart and Amazon. Albertsons Has a New Advantage for Grocery Shoppers

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.

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