Canada Pension Plan Investment Board Invests $53.24 Million in The Kroger Co. $KR

Key Points

• Canada Pension Plan Investment Board acquired 958,786 Kroger shares worth approximately $53.24 million, joining other major institutional investors; institutions now own 80.93% of the stock.
• Kroger’s shares opened at $56.87, near their 52-week low, after the company slightly missed quarterly EPS estimates despite revenue rising 2.2% year over year. Analysts maintain a “Moderate Buy” consensus with an average price target of $72.
• Kroger raised its quarterly dividend to $0.39 per share, or $1.56 annually, implying a 2.7% yield; the company is also expanding digital convenience through nationwide Instacart integration for grocery and prescription deliveries.

Canada Pension Plan Investment Board purchased a new position in The Kroger Co. (NYSE:KR - Free Report) during the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund purchased 958,786 shares of the company's stock, valued at approximately $53,241,000. Canada Pension Plan Investment Board owned approximately 0.16% of Kroger at the end of the most recent reporting period.

Other institutional investors and hedge funds have also bought and sold shares of the company. BlackRock Inc. bought a new position in shares of Kroger in the second quarter worth approximately $3,016,956,000. Norges Bank bought a new stake in shares of Kroger during the fourth quarter valued at approximately $470,561,000. Legal & General Group Plc purchased a new position in Kroger in the 2nd quarter worth approximately $284,501,000. Bank of New York Mellon Corp purchased a new position in Kroger in the 2nd quarter worth approximately $195,234,000. Finally, Deutsche Bank AG bought a new position in Kroger in the 2nd quarter valued at approximately $119,723,000. 80.93% of the stock is currently owned by institutional investors.

Kroger News Roundup

Here are the key news stories impacting Kroger this week:

• Positive Sentiment: Investors purchased approximately 36,013 call options on Kroger, about 168% above the typical daily volume. The activity may indicate increased speculative or hedging interest in a potential rebound, although options trading alone does not guarantee future gains.
• Positive Sentiment: Kroger’s nationwide Instacart integration allows customers to combine groceries and eligible prescription deliveries in one order across more than 2,200 pharmacy locations and nearly all major banners. The initiative could increase digital engagement, convenience and order frequency. How Investors May Respond To Kroger Linking Prescriptions With Instacart-Powered Online Grocery Delivery
• Positive Sentiment: Murray’s Cheese is introducing a premium cave-aged collection at select Harris Teeter stores in the Charlotte area. The launch supports Kroger’s differentiated product offerings, though its direct financial impact is likely modest. Murray’s Cheese Debuts Exclusive Cave Aged Collection at Harris Teeter

Analyst Ratings Changes

KR has been the subject of several recent analyst reports. Citigroup decreased their price target on Kroger from $71.00 to $61.00 and set a "neutral" rating for the company in a research note on Tuesday, June 23rd. Telsey Advisory Group set a $78.00 price objective on Kroger and gave the stock an "outperform" rating in a report on Monday, June 22nd. JPMorgan Chase & Co. decreased their target price on Kroger from $72.00 to $70.00 and set a "neutral" rating for the company in a research report on Thursday, June 11th. Jefferies Financial Group restated a "buy" rating and set a $80.00 target price on shares of Kroger in a research note on Wednesday, June 3rd. Finally, UBS Group set a $63.00 price target on shares of Kroger and gave the company a "neutral" rating in a report on Monday, June 22nd. Ten research analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $72.00.

Kroger Stock Down 2.8%

KR stock opened at $56.87 on Friday. The Kroger Co. has a fifty-two week low of $54.15 and a fifty-two week high of $76.58. The business's 50-day moving average is $57.61 and its two-hundred day moving average is $64.50. 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 cap of $34.84 billion, a price-to-earnings ratio of 33.45, a P/E/G ratio of 1.57 and a beta of 0.43.

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

Kroger Increases Dividend

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

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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