B. Metzler seel. Sohn & Co. AG Decreases Stake in The Kroger Co. $KR

Key Points

• B. Metzler seel. Sohn & Co. AG reduced its Kroger stake by 35.2% in the second quarter, selling 24,200 shares and retaining 44,509 shares valued at approximately $2.47 million. Institutional investors collectively own 80.93% of Kroger.
• Kroger faces mixed near-term signals ahead of its expected September 11 earnings report: analysts anticipate earnings growth, but warnings point to potentially weaker identical-store sales and elevated risk of an earnings miss.
• The stock has a “Moderate Buy” consensus rating with an average price target of $71.75, while Kroger raised its quarterly dividend to $0.39 from $0.35, representing a 2.7% yield.

B. Metzler seel. Sohn & Co. AG cut its stake in shares of The Kroger Co. (NYSE:KR - Free Report) by 35.2% during the second quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm owned 44,509 shares of the company's stock after selling 24,200 shares during the quarter. B. Metzler seel. Sohn & Co. AG's holdings in Kroger were worth $2,472,000 at the end of the most recent quarter.

A number of other large investors have also made changes to their positions in KR. MV Capital Management Inc. purchased a new position in shares of Kroger in the fourth quarter valued at $26,000. Whipplewood Advisors LLC purchased a new stake in shares of Kroger in the 1st quarter worth about $27,000. Lloyd Advisory Services LLC. acquired a new stake in Kroger in the 4th quarter valued at about $28,000. Axiom Investment Management LLC purchased a new position in Kroger during the 1st quarter valued at about $31,000. Finally, JPL Wealth Management LLC purchased a new position in Kroger during the 3rd quarter valued at about $31,000. 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: Wall Street analysts remain broadly optimistic on Kroger, although the articles do not indicate a major new upgrade. Positive sentiment may provide some support ahead of the earnings release. Is Kroger a Buy as Wall Street Analysts Look Optimistic?
• Positive Sentiment: Kroger appointed Mark Ibbotson, a Walmart veteran who helped lead the rollout of Walmart’s e-commerce platform, as executive vice president and chief store operations officer. His retail and digital experience could support store execution and online growth. Kroger taps Walmart tech veteran as store operations chief
• Neutral Sentiment: Kroger is expected to report fiscal second-quarter results on September 11. Analysts anticipate earnings growth, but current valuation commentary describes the shares as fairly valued rather than an obvious bargain. Kroger Reports Q2 Earnings Next Week
• Neutral Sentiment: The company reportedly announced a $1.65 billion grocery acquisition. The deal could expand Kroger’s footprint, but investors may remain cautious because Kroger is still involved in litigation related to its prior merger effort and faces regulatory scrutiny. Kroger Is Buying Another Grocery Chain While Still in Court
• Negative Sentiment: Oppenheimer warned that fiscal second-quarter identical sales could fall short of market expectations amid a challenging grocery environment. Consumer uncertainty is also weighing on the outlook. Kroger Could Miss Quarterly Identical Sales Views
• Negative Sentiment: Zacks said Kroger lacks the typical combination of earnings and estimate-revision trends that often precedes a quarterly earnings beat, increasing the risk of a disappointing report. Kroger Earnings Expected to Grow

Kroger Stock Performance

Shares of KR opened at $58.62 on Friday. The company has a debt-to-equity ratio of 2.43, a quick ratio of 0.39 and a current ratio of 0.79. The company has a market capitalization of $35.91 billion, a price-to-earnings ratio of 34.48, a PEG ratio of 1.64 and a beta of 0.41. The company's 50 day simple moving average is $57.71 and its 200 day simple moving average is $64.05. The Kroger Co. has a 1 year low of $54.15 and a 1 year high of $76.58.

Kroger (NYSE:KR - Get Free Report) last released its earnings results on Thursday, June 18th. The company reported $1.58 EPS for the quarter, missing the consensus estimate of $1.59 by ($0.01). The firm had revenue of $46.12 billion during the quarter, compared to analysts' expectations of $45.59 billion. Kroger had a return on equity of 44.33% and a net margin of 0.71%.The firm's revenue was up 2.2% on a year-over-year basis. During the same period in the previous year, the firm posted $1.49 earnings per share. Kroger has set its FY 2026 guidance at 5.100-5.30 EPS. On average, sell-side analysts predict that The Kroger Co. will post 5.21 EPS for the current year.

Kroger Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, September 1st. Shareholders of record on Saturday, August 15th were issued a $0.39 dividend. This is a positive change from Kroger's previous quarterly dividend of $0.35. The ex-dividend date was Friday, August 14th. This represents a $1.56 annualized dividend and a yield of 2.7%. Kroger's dividend payout ratio (DPR) is presently 91.76%.

Wall Street Analysts Forecast Growth

Several analysts have issued reports on KR shares. UBS Group reaffirmed a "neutral" rating on shares of Kroger in a report on Friday. JPMorgan Chase & Co. dropped their price objective on shares of Kroger from $72.00 to $70.00 and set a "neutral" rating for the company in a research note on Thursday, June 11th. Guggenheim restated a "buy" rating and set a $71.00 price objective on shares of Kroger in a research report on Thursday, July 2nd. The Goldman Sachs Group reaffirmed a "buy" rating and issued a $82.00 target price on shares of Kroger in a research note on Friday, June 19th. Finally, Citigroup reiterated a "neutral" rating and set a $57.00 target price (down from $61.00) on shares of Kroger in a report on Tuesday. Ten research analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $71.75.

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.

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