Kroger (NYSE:KR) Upgraded at Wall Street Zen

Key Points

• Wall Street Zen upgraded Kroger from “hold” to “buy.” Overall analyst sentiment is a “Moderate Buy,” with 12 Buy ratings, nine Holds and a consensus price target of $70.35.
• Kroger shares opened at $66.88, while the company’s latest quarterly results showed adjusted EPS of $1.09, beating estimates of $1.05, and revenue of $34.62 billion, roughly in line with expectations.
• The retailer plans to open about 110 stores, expand digital operations and grow private-label sales, supported by a proposed $4 billion savings program; however, market-share losses and execution risks could pressure margins during the investment period.

Kroger (NYSE:KR - Get Free Report) was upgraded by Wall Street Zen from a "hold" rating to a "buy" rating in a note issued to investors on Saturday, Wall Street Zen reports.

KR has been the subject of several other reports. UBS Group set a $66.00 target price on Kroger and gave the stock a "neutral" rating in a report on Wednesday. Weiss Ratings reiterated a "hold (c)" rating on shares of Kroger in a research report on Monday, September 14th. Roth Capital reissued a "buy" rating and issued a $73.00 price target on shares of Kroger in a research note on Monday, September 14th. Melius Research set a $80.00 price target on Kroger and gave the company a "buy" rating in a research note on Tuesday, September 29th. Finally, Evercore set a $70.00 price objective on Kroger in a research report on Monday, September 14th. Twelve research analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the company. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $70.35.

Kroger Stock Performance

Shares of KR stock opened at $66.88 on Friday. The firm has a market capitalization of $39.50 billion, a price-to-earnings ratio of 13.57, a PEG ratio of 1.97 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. The business's 50-day moving average price is $59.71 and its 200-day moving average price is $61.44. Kroger has a 12 month low of $54.15 and a 12 month high of $76.58.

Kroger (NYSE:KR - Get Free Report) last released its quarterly earnings data on Friday, September 11th. The company reported $1.09 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.05 by $0.04. The company had revenue of $34.62 billion during the quarter, compared to the consensus estimate 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 quarter in the prior year, the firm 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 5.19 EPS for the current year.

Insider Buying and Selling at Kroger

In related news, EVP Mary Adcock sold 72,901 shares of the business's stock in a transaction on 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 transaction, the executive vice president owned 175,233 shares in the company, valued at $10,636,643.10. The trade was a 29.38% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 0.41% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in the company. PFG Investments LLC grew its stake in Kroger by 3.3% in the first quarter. PFG Investments LLC now owns 4,899 shares of the company's stock valued at $354,000 after acquiring an additional 157 shares during the period. ROI Financial Advisors LLC raised its position in shares of Kroger by 2.0% during the first quarter. ROI Financial Advisors LLC now owns 8,943 shares of the company's stock worth $647,000 after purchasing an additional 175 shares during the period. FAS Wealth Partners Inc. raised its position in shares of Kroger by 2.7% during the first quarter. FAS Wealth Partners Inc. now owns 6,768 shares of the company's stock worth $490,000 after purchasing an additional 175 shares during the period. Wedmont Private Capital raised its position in shares of Kroger by 1.9% during the third quarter. Wedmont Private Capital now owns 10,088 shares of the company's stock worth $620,000 after purchasing an additional 192 shares during the period. Finally, Parkside Financial Bank & Trust lifted its holdings in shares of Kroger by 5.4% in the 2nd quarter. Parkside Financial Bank & Trust now owns 4,070 shares of the company's stock worth $226,000 after purchasing an additional 207 shares in the last quarter. 80.93% of the stock is owned by institutional investors and hedge funds.

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

About Kroger

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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