Foster & Motley Inc. Makes New Investment in The Kroger Co. $KR

Foster & Motley Inc. acquired a new stake in The Kroger Co. (NYSE:KR - Free Report) in the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm acquired 231,862 shares of the company's stock, valued at approximately $12,875,000.

A number of other hedge funds have also made changes to their positions in KR. RHS Financial LLC acquired a new stake in Kroger in the second quarter worth approximately $371,000. Meeder Advisory Services Inc. acquired a new position in shares of Kroger during the 2nd quarter valued at $1,231,000. Meeder Asset Management Inc. acquired a new position in shares of Kroger during the 2nd quarter valued at $7,511,000. Citizens Financial Group Inc. RI bought a new stake in shares of Kroger in the 2nd quarter worth $533,000. Finally, Texas Capital Bank Wealth Management Services Inc bought a new stake in shares of Kroger in the 2nd quarter worth $686,000. Institutional investors and hedge funds own 80.93% of the company's stock.

Key Stories Impacting Kroger

Here are the key news stories impacting Kroger this week:

• Positive Sentiment: Kroger is opening new Marketplace locations in metro Atlanta, expanding its larger-format grocery, general merchandise and prepared-food offering. A new store is also planned for Lenoir City, Tennessee, supporting the company’s long-term growth and local market presence. Kroger opens new Marketplace locations in metro Atlanta New Kroger grocery store coming to Lenoir City
• Neutral Sentiment: Rebel Creamery, whose ice cream products are sold at Kroger and other major retailers, filed for bankruptcy while appealing a multimillion-dollar judgment. The development could affect product availability, but appears unlikely to have a material direct impact on Kroger’s finances. Ice cream brand sold at Kroger files for bankruptcy
• Negative Sentiment: Kroger reportedly plans to close 60 U.S. stores in 2026, including locations tied to its Fry’s banner. The closures may improve efficiency and profitability, but they also signal weak store economics and could reduce sales and customer reach. Kroger to Close 60 Stores
• Negative Sentiment: Reports and social-media reactions highlight declining Kroger store traffic, raising concerns about competitive pressure, consumer behavior and the company’s ability to sustain sales growth. Kroger’s declining traffic
• Negative Sentiment: A jalapeño-related salmonella recall involving products sold at Kroger and other grocers creates potential reputational, compliance and customer-trust risks, although the financial impact is not yet clear. Products recalled over jalapeño salmonella outbreak
• Negative Sentiment: Kroger’s co-branded credit card with U.S. Bank is reportedly being discontinued, including changes to gas-discount benefits. Ending the program may frustrate shoppers and weaken loyalty incentives. Kroger’s credit card is going away

Kroger Trading Up 0.6%

Shares of KR opened at $56.39 on Wednesday. The business's 50-day moving average price is $58.34 and its 200 day moving average price is $64.84. The company has a current ratio of 0.79, a quick ratio of 0.39 and a debt-to-equity ratio of 2.43. The stock has a market capitalization of $34.55 billion, a P/E ratio of 33.17, a P/E/G ratio of 1.52 and a beta of 0.43. 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 posted its quarterly earnings data on Thursday, June 18th. The company reported $1.58 EPS for the quarter, missing analysts' consensus estimates of $1.59 by ($0.01). The firm had revenue of $46.12 billion for 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%. Kroger's quarterly revenue was up 2.2% compared to the same quarter last year. During the same period in the prior year, the company posted $1.49 earnings per share. Kroger has set its FY 2026 guidance at 5.100-5.30 EPS. 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. Investors of record on Saturday, August 15th will be paid a $0.39 dividend. The ex-dividend date of this dividend is Friday, August 14th. This represents a $1.56 dividend on an annualized basis and a yield of 2.8%. This is a positive change from Kroger's previous quarterly dividend of $0.35. Kroger's dividend payout ratio (DPR) is 91.76%.

Analysts Set New Price Targets

A number of research firms recently issued reports on KR. UBS Group set a $63.00 target price on Kroger and gave the stock a "neutral" rating in a report 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. Weiss Ratings lowered shares of Kroger from a "hold (c+)" rating to a "hold (c)" rating in a research report on Thursday, June 18th. Evercore reaffirmed an "outperform" rating and issued a $78.00 price objective on shares of Kroger in a research note on Tuesday, July 7th. Finally, Guggenheim reiterated a "buy" rating and issued a $71.00 target price on shares of Kroger in a report on Thursday, July 2nd. Ten investment analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company. According to data from MarketBeat, Kroger currently has an average rating of "Moderate Buy" and a consensus price target of $72.00.

Kroger 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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