Bank of Nova Scotia Boosts Holdings in The Kroger Co. $KR

Key Points

• Bank of Nova Scotia increased its Kroger stake by 218.9% in the first quarter, buying 232,899 more shares and bringing its total holding to 339,278 shares worth about $24.6 million.
• Kroger reported mixed quarterly results, with EPS of $1.58 narrowly missing estimates but revenue of $46.12 billion topping expectations and rising 2.2% year over year.
• The company raised its quarterly dividend to $0.39 per share from $0.35, and analysts currently have a Moderate Buy consensus with an average price target of $72.

Bank of Nova Scotia boosted its position in shares of The Kroger Co. (NYSE:KR - Free Report) by 218.9% during the 1st quarter, according to its most recent 13F filing with the SEC. The fund owned 339,278 shares of the company's stock after purchasing an additional 232,899 shares during the quarter. Bank of Nova Scotia owned about 0.06% of Kroger worth $24,550,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds have also bought and sold shares of the company. Allstate Corp increased its stake in shares of 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 in the last quarter. Vanguard Group Inc. lifted its position in Kroger by 1.1% during the fourth quarter. Vanguard Group Inc. now owns 77,169,425 shares of the company's stock valued at $4,821,546,000 after purchasing an additional 868,529 shares in the last quarter. Conning Inc. lifted its position in Kroger by 10,178.7% during the fourth quarter. Conning Inc. now owns 507,459 shares of the company's stock valued at $31,706,000 after purchasing an additional 502,522 shares in the last quarter. Universal Beteiligungs und Servicegesellschaft mbH grew its holdings in Kroger by 30.6% during the fourth quarter. Universal Beteiligungs und Servicegesellschaft mbH now owns 894,217 shares of the company's stock valued at $55,946,000 after purchasing an additional 209,264 shares during the period. Finally, North Dakota State Investment Board bought a new stake in Kroger during the fourth quarter valued at about $1,299,000. 80.93% of the stock is currently owned by institutional investors.

Kroger Stock Performance

NYSE:KR opened at $56.81 on Friday. The stock has a 50-day moving average price of $60.85 and a 200 day moving average price of $65.39. The stock has a market capitalization of $34.80 billion, a P/E ratio of 33.42, a P/E/G ratio of 1.53 and a beta of 0.44. The Kroger Co. has a 12-month low of $54.15 and a 12-month high of $76.58. 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 EPS for the quarter, missing analysts' consensus estimates of $1.59 by ($0.01). Kroger had a return on equity of 44.33% and a net margin of 0.71%.The business had revenue of $46.12 billion during the quarter, compared to analysts' expectations of $45.59 billion. During the same period in the prior year, the firm posted $1.49 earnings per share. The firm's revenue for the quarter was up 2.2% on a year-over-year basis. Kroger has set its FY 2026 guidance at 5.100-5.30 EPS. Equities research analysts forecast that The Kroger Co. will post 5.21 EPS for the current fiscal year.

Kroger Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, September 1st. Shareholders of record on Saturday, August 15th will be paid a $0.39 dividend. This represents a $1.56 annualized dividend and a yield of 2.7%. The ex-dividend date is Friday, August 14th. This is an increase from Kroger's previous quarterly dividend of $0.35. Kroger's dividend payout ratio is presently 82.35%.

Key Stories Impacting Kroger

Here are the key news stories impacting Kroger this week:

• Positive Sentiment: Kroger Health launched its new GLP-1 Complete Support Program, with dietitians providing guidance for patients using weight-management medications. This could strengthen Kroger’s health-services offering and create a new customer-engagement opportunity. Article Title
• Positive Sentiment: A back-to-school hiring event is seeking to fill hundreds of store jobs across four states, signaling Kroger is still investing in store operations and labor coverage heading into a busy retail period. Article Title
• Positive Sentiment: Kroger’s ongoing automation and robotics efforts in Columbus-area stores may support efficiency and long-term margin improvement. Article Title

Wall Street Analysts Forecast Growth

Several research analysts have recently commented on the company. The Goldman Sachs Group reaffirmed a "buy" rating and issued a $82.00 price objective on shares of Kroger in a research note on Friday, June 19th. Weiss Ratings downgraded Kroger from a "hold (c+)" rating to a "hold (c)" rating in a research note on Thursday, June 18th. Morgan Stanley decreased their target price on shares of Kroger from $73.00 to $67.00 and set an "equal weight" rating on the stock in a research note on Monday, June 22nd. Telsey Advisory Group set a $78.00 price target on shares of Kroger and gave the company an "outperform" rating in a report on Monday, June 22nd. Finally, Erste Group Bank lowered shares of Kroger from a "buy" rating to a "hold" rating in a research report on Monday, April 27th. Ten analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $72.00.

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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