Citigroup Cuts Kroger (NYSE:KR) Price Target to $61.00

Key Points

• Citigroup cut Kroger’s price target from $71 to $61 while keeping a neutral rating. The new target still implies about 6.8% upside from the prior close.
• Wall Street remains mixed on Kroger, with some firms maintaining bullish calls while others trimmed targets after recent results. Overall, analysts currently view the stock as a Moderate Buy with a consensus target of $71.94.
• Kroger’s latest quarter was mixed: revenue topped expectations at $46.12 billion, but EPS of $1.58 missed estimates by a penny. The company also reported 2.2% year-over-year revenue growth and guided FY2026 EPS at 5.10 to 5.30.

Kroger (NYSE:KR - Get Free Report) had its target price decreased by stock analysts at Citigroup from $71.00 to $61.00 in a note issued to investors on Tuesday,Benzinga reports. The firm presently has a "neutral" rating on the stock. Citigroup's target price would indicate a potential upside of 6.80% from the company's previous close.

KR has been the subject of a number of other research reports. Royal Bank Of Canada reissued an "outperform" rating on shares of Kroger in a research note on Monday, June 1st. The Goldman Sachs Group restated a "buy" rating and set a $82.00 price objective on shares of Kroger in a report on Friday. Guggenheim set a $71.00 price target on shares of Kroger and gave the company a "buy" rating in a research report on Monday. Wells Fargo & Company set a $58.00 price target on Kroger in a research note on Monday. Finally, JPMorgan Chase & Co. lowered their price objective on Kroger from $72.00 to $70.00 and set a "neutral" rating for the company in a research note on Thursday, June 11th. Nine research analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $71.94.

Kroger Stock Up 2.4%

NYSE KR traded up $1.35 on Tuesday, hitting $57.12. 2,601,682 shares of the company were exchanged, compared to its average volume of 6,760,267. The company has a market cap of $34.99 billion, a PE ratio of 33.52, a PEG ratio of 1.58 and a beta of 0.43. Kroger has a 12 month low of $55.60 and a 12 month high of $76.58. The stock has a fifty day moving average of $65.22 and a 200-day moving average of $66.24. 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 (NYSE:KR - Get Free Report) last posted its quarterly earnings results on Thursday, June 18th. The company reported $1.58 earnings per share for the quarter, missing the consensus estimate of $1.59 by ($0.01). The company had revenue of $46.12 billion during the quarter, compared to the consensus estimate of $45.59 billion. Kroger had a net margin of 0.71% and a return on equity of 44.33%. The company's revenue for the quarter was up 2.2% on a year-over-year basis. During the same period last year, the firm posted $1.49 earnings per share. Kroger has set its FY 2026 guidance at 5.100-5.30 EPS. As a group, analysts forecast that Kroger will post 5.25 earnings per share for the current year.

Institutional Trading of Kroger

Institutional investors and hedge funds have recently modified their holdings of the business. Ares Financial Consulting LLC purchased a new stake in Kroger in the fourth quarter valued at approximately $25,000. Princeton Global Asset Management LLC increased its holdings in shares of Kroger by 268.1% in the 4th quarter. Princeton Global Asset Management LLC now owns 416 shares of the company's stock worth $26,000 after buying an additional 303 shares during the last quarter. MV Capital Management Inc. purchased a new stake in shares of Kroger during the 4th quarter valued at $26,000. Whipplewood Advisors LLC bought a new stake in shares of Kroger during the 1st quarter worth $27,000. Finally, Lloyd Advisory Services LLC. purchased a new position in Kroger in the fourth quarter worth $28,000. Hedge funds and other institutional investors own 80.93% of the company's stock.

Key Kroger News

Here are the key news stories impacting Kroger this week:

• Positive Sentiment: Kroger announced an expanded Lisa Vanderpump collaboration, adding new Vanderpump Home products to its Bloom Haus lineup and giving the grocer another exclusive merchandise tie-in that could support traffic and non-food sales. Vanderpump Blooms x Bloom Haus, Floral Collection by Lisa Vanderpump, Expands Line
• Positive Sentiment: Kroger Health said it is working with Hy-Vee and Ahold Delhaize USA to advance the “Nourishing Change” health initiative, reinforcing its push into healthcare and wellness services. Kroger Health, Hy-Vee and Ahold Delhaize USA to Convene Industry Leaders Advancing the Future of Health at Nourishing Change
• Neutral Sentiment: Commentary around Kroger’s Q1 call emphasized cost control, price competitiveness, store execution and a more profitable e-commerce model, which suggests management is focused on defending margins while investing in growth. Kroger Q1 Earnings Call Focuses on Cost, Price and E-Commerce
• Neutral Sentiment: Kroger also defeated a former store manager’s disability-accommodation lawsuit, removing a legal overhang but not likely moving the stock materially on its own. Kroger Defeats Ex-Store Manager’s Disability Accommodation Suit
• Negative Sentiment: Several Wall Street firms cut price targets after Kroger’s mixed Q1 results, including Morgan Stanley and Wells Fargo, reflecting concern that the company faces a tougher pricing and margin environment ahead. These Analysts Slash Their Forecasts On Kroger Following Q1 Earnings
• Negative Sentiment: Analyst notes also pointed to weaker margins and a “choppy” near-term outlook, with grocery industry commentary suggesting Kroger may be lagging broader retail momentum. Kroger's Price Investment Strategy is Prudent but Carries Significant Difficulties, Morgan Stanley Says

Kroger Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.