The Kroger Co. (NYSE:KR) Receives Consensus Rating of "Moderate Buy" from Brokerages

Key Points

• Analyst sentiment is moderately bullish: Nineteen brokerages give Kroger a consensus “Moderate Buy” rating, with 10 buys and 9 holds. The average 12-month price target is $69, versus a recent share price of $59.73.
• Kroger beat quarterly earnings expectations, reporting $1.09 EPS versus the $1.05 consensus estimate, while revenue reached $34.62 billion and increased 2% year over year.
• The company declared a quarterly dividend of $0.39 per share, equivalent to a $1.56 annualized payout and a 2.6% yield. Institutional investors own approximately 80.93% of Kroger’s shares.

Shares of The Kroger Co. (NYSE:KR - Get Free Report) have been assigned a consensus rating of "Moderate Buy" from the nineteen research firms that are currently covering the stock, MarketBeat Ratings reports. Nine analysts have rated the stock with a hold rating and ten have given a buy rating to the company. The average 12 month target price among brokerages that have covered the stock in the last year is $69.00.

Several brokerages have commented on KR. Weiss Ratings reiterated a "hold (c)" rating on shares of Kroger in a research report on Monday, September 14th. Jefferies Financial Group reaffirmed a "buy" rating and issued a $80.00 price objective on shares of Kroger in a research note on Wednesday, June 3rd. Morgan Stanley dropped their target price on shares of Kroger from $73.00 to $67.00 and set an "equal weight" rating on the stock in a report on Monday, June 22nd. HC Wainwright reissued a "buy" rating on shares of Kroger in a research note on Thursday, July 2nd. Finally, JPMorgan Chase & Co. reduced their target price on shares of Kroger from $72.00 to $70.00 and set a "neutral" rating for the company in a report on Thursday, June 11th.

Kroger Price Performance

Shares of NYSE:KR opened at $59.73 on Tuesday. The stock has a market cap of $36.59 billion, a price-to-earnings ratio of 32.46, a PEG ratio of 1.64 and a beta of 0.41. The company has a debt-to-equity ratio of 2.59, a current ratio of 0.70 and a quick ratio of 0.31. Kroger has a 12 month low of $54.15 and a 12 month high of $76.58. The stock's 50 day moving average price is $57.97 and its 200 day moving average price is $63.31.

Kroger (NYSE:KR - Get Free Report) last issued its quarterly earnings results 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 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 firm's revenue for the quarter was up 2.0% on a year-over-year basis. During the same period last year, the firm earned $1.04 EPS. Kroger has set its FY 2026 guidance at 5.100-5.300 EPS. Equities research analysts anticipate that Kroger will post 5.19 earnings per share for the current fiscal year.

Kroger Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 1st. Stockholders of record on Monday, November 16th will be given a dividend of $0.39 per share. This represents a $1.56 dividend on an annualized basis and a dividend yield of 2.6%. The ex-dividend date is Monday, November 16th. Kroger's dividend payout ratio is 84.78%.

More Kroger News

Here are the key news stories impacting Kroger this week:

• Positive Sentiment: Kroger expanded its fulfillment capabilities by enabling customers to receive groceries and prescriptions in a single delivery order. The initiative could improve convenience, strengthen customer retention and support digital sales growth. Kroger now delivers groceries and prescriptions in one order

Insider Activity

In other news, EVP Mary Adcock sold 72,901 shares of the business's stock in a transaction on Friday, September 18th. The stock was sold at an average price of $60.70, for a total transaction of $4,425,090.70. Following the sale, the executive vice president directly owned 175,233 shares of the company's stock, valued at $10,636,643.10. The trade was a 29.38% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 0.41% of the stock is owned by insiders.

Hedge Funds Weigh In On Kroger

A number of institutional investors have recently bought and sold shares of the stock. SGL Investment Advisors Inc. purchased a new position in shares of Kroger in the second quarter worth approximately $2,764,000. Amundi lifted its position in shares of Kroger by 18.3% in the 2nd quarter. Amundi now owns 3,942,230 shares of the company's stock valued at $218,912,000 after acquiring an additional 610,039 shares in the last quarter. Allstate Corp boosted its stake in Kroger by 108.5% in the 4th quarter. Allstate Corp now owns 47,991 shares of the company's stock worth $2,998,000 after purchasing an additional 24,976 shares during the period. Mitsubishi UFJ Asset Management Co. Ltd. purchased a new position in Kroger during the 2nd quarter worth approximately $76,633,000. Finally, Quantitative Investment Management LLC purchased a new position in Kroger during the 2nd quarter worth approximately $1,527,000. Hedge funds and other institutional investors own 80.93% of the company's stock.

Kroger Company Profile

The Kroger Co NYSE: KR is one of the largest grocery retailers in the United States. Founded in Cincinnati in 1883 by Bernard Kroger, the company operates supermarkets, multi-department stores, pharmacies, convenience stores and fuel centers across the country.

Kroger sells a broad range of fresh foods, packaged groceries, household products, health and beauty items, prepared foods and general merchandise. Its private-label offerings include Simple Truth, Private Selection and Kroger brands.

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