Applied Finance Capital Management LLC Takes Position in The Kroger Co. $KR

Key Points

• Applied Finance Capital Management LLC disclosed a new fourth-quarter position in Kroger, buying 15,941 shares worth about $996,000. The filing also noted that institutional investors and hedge funds own 80.93% of Kroger’s stock.
• Kroger recently reported better-than-expected earnings, with EPS of $1.28 versus the $1.20 estimate, though revenue came in slightly below expectations at $34.73 billion. The company also reaffirmed guidance for FY 2026 EPS of $5.10 to $5.30.
• The board declared a quarterly dividend of $0.35 per share, payable June 1, implying an annualized yield of about 2.1%. Meanwhile, analysts remain mixed, with a consensus rating of Hold and an average price target of $74.56.

Applied Finance Capital Management LLC acquired a new position in shares of The Kroger Co. (NYSE:KR - Free Report) in the 4th quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor acquired 15,941 shares of the company's stock, valued at approximately $996,000.

Other institutional investors and hedge funds have also added to or reduced their stakes in the company. Ares Financial Consulting LLC acquired a new position in Kroger during the fourth quarter worth $25,000. Princeton Global Asset Management LLC increased its position in shares of Kroger by 268.1% during the 4th quarter. Princeton Global Asset Management LLC now owns 416 shares of the company's stock valued at $26,000 after purchasing an additional 303 shares during the last quarter. Avalon Trust Co purchased a new stake in Kroger in the 3rd quarter worth about $29,000. JPL Wealth Management LLC purchased a new position in Kroger during the 3rd quarter valued at about $31,000. Finally, Westside Investment Management Inc. grew its holdings in Kroger by 100.0% during the 3rd quarter. Westside Investment Management Inc. now owns 490 shares of the company's stock valued at $33,000 after buying an additional 245 shares in the last quarter. Institutional investors and hedge funds own 80.93% of the company's stock.

Kroger News Roundup

Here are the key news stories impacting Kroger this week:

• Positive Sentiment: Harris Teeter, a Kroger banner, launched a week-long customer appreciation sale with daily deals and 4x fuel points, which could support traffic and sales at the grocery chain. Harris Teeter Offers VIC Card Members Daily Deals, 4x Fuel Points During Week-Long Customer Appreciation Sale May 13-19
• Positive Sentiment: Several articles highlighted the Kroger Queen City Championship and local golfers, keeping the company’s brand visible in a community event that can reinforce customer engagement. Xavier University golfers bring hometown buzz to Kroger Queen City Championship
• Positive Sentiment: The company’s recent share-price softness may be attracting value-focused investors who see potential upside after a multi-month pullback. Is Kroger (KR) Offering Opportunity After Recent Share Price Softness?

Kroger Trading Down 1.1%

KR opened at $66.08 on Friday. The Kroger Co. has a 52 week low of $58.60 and a 52 week high of $76.58. The stock's fifty day moving average is $69.99 and its two-hundred day moving average is $66.65. The company has a market capitalization of $40.48 billion, a P/E ratio of 43.19, a PEG ratio of 1.78 and a beta of 0.46. The company has a quick ratio of 0.42, a current ratio of 0.80 and a debt-to-equity ratio of 2.66.

Kroger (NYSE:KR - Get Free Report) last announced its earnings results on Thursday, March 5th. The company reported $1.28 earnings per share for the quarter, topping the consensus estimate of $1.20 by $0.08. The firm had revenue of $34.73 billion for the quarter, compared to the consensus estimate of $35.10 billion. Kroger had a return on equity of 41.08% and a net margin of 0.69%.The firm's revenue for the quarter was up 1.2% on a year-over-year basis. During the same period in the previous year, the business earned $1.14 EPS. Kroger has set its FY 2026 guidance at 5.100-5.300 EPS. Analysts forecast that The Kroger Co. will post 5.24 earnings per share for the current year.

Kroger Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Monday, June 1st. Shareholders of record on Friday, May 15th will be paid a $0.35 dividend. The ex-dividend date is Friday, May 15th. This represents a $1.40 dividend on an annualized basis and a yield of 2.1%. Kroger's dividend payout ratio (DPR) is currently 91.50%.

Analyst Upgrades and Downgrades

A number of brokerages have recently issued reports on KR. Morgan Stanley set a $73.00 price target on Kroger and gave the company an "equal weight" rating in a research report on Thursday, March 5th. Wall Street Zen upgraded Kroger from a "hold" rating to a "buy" rating in a research report on Saturday, April 4th. Guggenheim restated a "buy" rating and issued a $78.00 target price on shares of Kroger in a research report on Tuesday, February 10th. Citigroup boosted their target price on Kroger from $68.00 to $71.00 and gave the stock a "neutral" rating in a research report on Monday, March 9th. Finally, Wells Fargo & Company cut Kroger from an "overweight" rating to an "equal weight" rating and decreased their price target for the stock from $70.00 to $68.00 in a research note on Wednesday, February 25th. Eight analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the company. According to MarketBeat, the company presently has a consensus rating of "Hold" and an average target price of $74.56.

Kroger 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.

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