Cetera Investment Advisers Reduces Holdings in The Kroger Co. $KR

Key Points

• Cetera Investment Advisers cut its Kroger holdings by 17.5% in the first quarter, selling 66,152 shares and retaining 311,154 shares valued at approximately $22.5 million. Institutional investors and hedge funds collectively own 80.93% of Kroger.
• Analyst sentiment remains moderately positive, with 10 Buy ratings and nine Holds and a consensus price target of $72. Morgan Stanley and JPMorgan recently lowered their targets, while RBC maintained an Outperform rating.
• Kroger reported quarterly revenue of $46.12 billion, ahead of expectations, but adjusted earnings of $1.58 per share narrowly missed estimates. The company raised its quarterly dividend to $0.39, equivalent to a 2.7% annualized yield.

Cetera Investment Advisers lowered its holdings in shares of The Kroger Co. (NYSE:KR - Free Report) by 17.5% in the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 311,154 shares of the company's stock after selling 66,152 shares during the period. Cetera Investment Advisers owned about 0.05% of Kroger worth $22,515,000 at the end of the most recent reporting period.

Several other large investors have also modified their holdings of the business. Ares Financial Consulting LLC purchased a new position in Kroger during the fourth quarter worth $25,000. Princeton Global Asset Management LLC lifted its position in shares of Kroger by 268.1% in the fourth quarter. Princeton Global Asset Management LLC now owns 416 shares of the company's stock valued at $26,000 after acquiring an additional 303 shares in the last quarter. MV Capital Management Inc. acquired a new stake in shares of Kroger during the fourth quarter valued at $26,000. Whipplewood Advisors LLC acquired a new stake in shares of Kroger during the first quarter valued at $27,000. Finally, Lloyd Advisory Services LLC. purchased a new stake in Kroger during the 4th quarter worth about $28,000. 80.93% of the stock is currently owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

Several brokerages recently weighed in on KR. Royal Bank Of Canada reissued an "outperform" rating on shares of Kroger in a research note on Monday, June 1st. Erste Group Bank cut shares of Kroger from a "buy" rating to a "hold" rating in a research note on Monday, April 27th. Morgan Stanley lowered their price target on shares of Kroger from $73.00 to $67.00 and set an "equal weight" rating for the company in a report on Monday, June 22nd. Wells Fargo & Company set a $58.00 price objective on shares of Kroger in a research note on Monday, June 22nd. Finally, JPMorgan Chase & Co. decreased their target price on shares of Kroger from $72.00 to $70.00 and set a "neutral" rating on the stock in a research report on Thursday, June 11th. Ten investment analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the stock. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus price target of $72.00.

Kroger Price Performance

KR opened at $57.99 on Tuesday. The Kroger Co. has a 52-week low of $54.15 and a 52-week high of $76.58. The company has a market cap of $35.53 billion, a P/E ratio of 34.11, a P/E/G ratio of 1.53 and a beta of 0.44. The company has a quick ratio of 0.39, a current ratio of 0.79 and a debt-to-equity ratio of 2.43. The company has a 50 day moving average of $60.65 and a two-hundred day moving average of $65.39.

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

Kroger Increases Dividend

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

About Kroger

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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