Cibc World Market Inc. Makes New Investment in The Kroger Co. $KR

Key Points

• Cibc World Market Inc. acquired 278,807 Kroger shares during the second quarter, valued at approximately $15.5 million. Institutional investors and hedge funds collectively own 80.93% of Kroger.
• Analysts maintain a generally positive view, with a consensus rating of “Moderate Buy” and an average price target of $72. Kroger recently reported $46.12 billion in quarterly revenue, up 2.2% year over year, though EPS of $1.58 narrowly missed estimates.
• Kroger raised its quarterly dividend to $0.39 per share, equivalent to an annualized $1.56 dividend and a 2.6% yield. Shares opened at $59.06, near the lower end of their 52-week range of $54.15 to $76.58.

Cibc World Market Inc. acquired a new position in shares of The Kroger Co. (NYSE:KR - Free Report) in the 2nd quarter, according to its most recent 13F filing with the SEC. The fund acquired 278,807 shares of the company's stock, valued at approximately $15,482,000.

A number of other large investors have also recently bought and sold shares of the stock. Financial Engines Advisors L.L.C. lifted its position in shares of Kroger by 4.5% in the fourth quarter. Financial Engines Advisors L.L.C. now owns 3,537 shares of the company's stock valued at $221,000 after acquiring an additional 153 shares in the last quarter. PFG Investments LLC raised its stake in Kroger by 3.3% in the 1st quarter. PFG Investments LLC now owns 4,899 shares of the company's stock valued at $354,000 after purchasing an additional 157 shares during the last quarter. Smartleaf Asset Management LLC lifted its holdings in Kroger by 1.5% in the 4th quarter. Smartleaf Asset Management LLC now owns 10,747 shares of the company's stock valued at $674,000 after purchasing an additional 162 shares in the last quarter. Stephens Inc. AR boosted its stake in shares of Kroger by 1.0% during the 4th quarter. Stephens Inc. AR now owns 17,995 shares of the company's stock worth $1,124,000 after purchasing an additional 174 shares during the last quarter. Finally, ROI Financial Advisors LLC grew its holdings in shares of Kroger by 2.0% during the first quarter. ROI Financial Advisors LLC now owns 8,943 shares of the company's stock worth $647,000 after buying an additional 175 shares in the last quarter. Institutional investors and hedge funds own 80.93% of the company's stock.

Analyst Upgrades and Downgrades

A number of brokerages have recently commented on KR. HC Wainwright reaffirmed a "buy" rating on shares of Kroger in a research report on Thursday, July 2nd. UBS Group set a $63.00 price target on Kroger and gave the company a "neutral" rating in a report on Monday, June 22nd. The Goldman Sachs Group reiterated a "buy" rating and set a $82.00 price objective on shares of Kroger in a report on Friday, June 19th. Royal Bank Of Canada restated an "outperform" rating on shares of Kroger in a report on Monday, June 1st. Finally, Wall Street Zen downgraded shares of Kroger from a "buy" rating to a "hold" rating in a research note on Saturday, June 20th. Ten research analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company's stock. According to MarketBeat.com, Kroger has a consensus rating of "Moderate Buy" and an average target price of $72.00.

Kroger Stock Performance

Shares of NYSE:KR opened at $59.06 on Tuesday. The business's 50-day simple moving average is $57.78 and its 200 day simple moving average is $64.69. The company has a market cap of $36.18 billion, a P/E ratio of 34.74, a PEG ratio of 1.55 and a beta of 0.43. 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 Kroger Co. has a one year low of $54.15 and a one year high of $76.58.

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

Kroger Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 1st. Shareholders of record on Saturday, August 15th will be paid a dividend of $0.39 per share. This is a boost from Kroger's previous quarterly dividend of $0.35. The ex-dividend date is Friday, August 14th. This represents a $1.56 dividend on an annualized basis and a yield of 2.6%. Kroger's payout ratio is 91.76%.

Kroger News Summary

Here are the key news stories impacting Kroger this week:

• Positive Sentiment: Kroger is rolling out inventory robots, a move that could improve in-store efficiency, reduce labor requirements and help keep products available. The financial benefit is not yet quantified. Kroger rolls out inventory robots
• Positive Sentiment: Kroger and Instacart launched single-order delivery for groceries and eligible prescriptions through Kroger’s websites and apps, including at Fred Meyer, Ralphs and Harris Teeter. The service may increase convenience, digital engagement and order frequency, although delivery costs and customer adoption will determine its earnings impact. Kroger Customers Can Shop for Groceries and Prescriptions in a Single Order
• Positive Sentiment: Promino secured a 662-store Kroger pharmacy test for its Rejuvenate Muscle Health product. The pilot could support pharmacy traffic and ancillary sales, but it is unlikely to materially affect Kroger’s results unless expanded. Promino Secures 662-Store Kroger Pharmacy Test
• Neutral Sentiment: A recall covers roughly 40,000 bottles of eye drops sold at Kroger and other retailers. The product was not exclusive to Kroger, so the direct financial impact may be limited, but recalls can create temporary operational and reputational concerns. Eye-drop recall coverage
• Negative Sentiment: Kroger agreed to a $17 million settlement resolving claims that pharmacy customers were overcharged copayments. The payment is manageable relative to Kroger’s size, but the expense and allegations of unfair pricing could weigh on sentiment toward its pharmacy business. Kroger must pay $17 million settlement

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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