Fulcrum Asset Management LLP Makes New Investment in The Kroger Co. $KR

Key Points

• Fulcrum Asset Management bought 128,703 Kroger shares worth approximately $7.2 million in the second quarter, making Kroger 0.7% of its portfolio. Institutional investors collectively own 80.93% of the stock.
• Kroger reported quarterly revenue of $46.12 billion, up 2.2% year over year and above estimates, while EPS of $1.58 narrowly missed expectations. Analysts maintain a “Moderate Buy” consensus with an average price target of $72.
• Kroger raised its quarterly dividend to $0.39 from $0.35, implying a 2.7% annual yield, but investors face concerns including declining July foot traffic and multiple legal disputes.

Fulcrum Asset Management LLP purchased a new stake in The Kroger Co. (NYSE:KR - Free Report) in the second quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund purchased 128,703 shares of the company's stock, valued at approximately $7,196,000. Kroger makes up 0.7% of Fulcrum Asset Management LLP's holdings, making the stock its 26th largest position.

A number of other large investors have also added to or reduced their stakes in the stock. Financial Engines Advisors L.L.C. raised its holdings in Kroger by 4.5% in the 4th 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 grew its holdings in shares of Kroger by 3.3% during the 1st quarter. PFG Investments LLC now owns 4,899 shares of the company's stock worth $354,000 after purchasing an additional 157 shares in the last quarter. Smartleaf Asset Management LLC increased its position in shares of Kroger by 1.5% in the fourth quarter. Smartleaf Asset Management LLC now owns 10,747 shares of the company's stock worth $674,000 after purchasing an additional 162 shares during the period. Stephens Inc. AR increased its position in shares of Kroger by 1.0% in the fourth 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 period. Finally, ROI Financial Advisors LLC raised its stake in Kroger by 2.0% in the first quarter. ROI Financial Advisors LLC now owns 8,943 shares of the company's stock valued at $647,000 after purchasing an additional 175 shares in the last quarter. Institutional investors and hedge funds own 80.93% of the company's stock.

Kroger News Roundup

Here are the key news stories impacting Kroger this week:

• Positive Sentiment: Kroger announced its 2026 Wellness Tour, with September in-store and community events intended to increase customer engagement and reinforce the company’s health-and-wellness offerings. The initiative is strategically positive, though its near-term financial impact is likely limited. Kroger Wellness Tour announcement
• Positive Sentiment: Unusually heavy call-option activity, with purchases more than double the typical daily volume, suggests increased bullish speculative interest. However, options activity does not guarantee sustained buying in the stock.
• Neutral Sentiment: Murray’s Cheese, a Kroger brand, expanded its premium cave-aged collection to select Harris Teeter stores in Charlotte. The launch supports product differentiation and potentially higher-margin sales but is unlikely to materially affect companywide results. Murray’s Cheese Harris Teeter launch
• Neutral Sentiment: Kroger’s recent earnings showed revenue growth and earnings ahead of the prior-year period, but earnings per share narrowly missed estimates. Management’s fiscal-year EPS guidance remains a key factor for investors assessing whether the current valuation is justified.
• Negative Sentiment: Industry data indicated Kroger’s foot traffic declined in July as the broader supermarket sector also struggled. Persistent traffic weakness could pressure comparable sales and raise concerns about consumer demand. Kroger July foot traffic report
• Negative Sentiment: Kroger agreed to pay $17 million to settle a class-action lawsuit alleging prescription-drug pricing practices. The cash cost is manageable relative to Kroger’s size, but the settlement adds legal expense and reputational risk. Kroger prescription pricing settlement
• Negative Sentiment: Sony Music sued Kroger over alleged unauthorized use of songs in social-media advertising, creating another potential legal liability. The financial impact is uncertain, but the lawsuit adds to investor concerns following the pharmacy settlement. Sony Music lawsuit against Kroger

Analysts Set New Price Targets

A number of brokerages have issued reports on KR. JPMorgan Chase & Co. reduced their price objective on shares of Kroger from $72.00 to $70.00 and set a "neutral" rating on the stock in a research note on Thursday, June 11th. UBS Group set a $63.00 target price on shares of Kroger and gave the company a "neutral" rating in a research report on Monday, June 22nd. Telsey Advisory Group set a $78.00 price target on shares of Kroger and gave the stock an "outperform" rating in a research report on Monday, June 22nd. HC Wainwright reissued a "buy" rating on shares of Kroger in a research note on Thursday, July 2nd. Finally, Weiss Ratings downgraded shares of Kroger from a "hold (c+)" rating to a "hold (c)" rating in a research report on Thursday, June 18th. Ten equities research analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $72.00.

Kroger Trading Up 1.4%

KR opened at $57.73 on Friday. The company has a market cap of $35.37 billion, a P/E ratio of 33.96, a PEG ratio of 1.53 and a beta of 0.43. 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 company's 50 day moving average is $57.63 and its 200-day moving average is $64.45. 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 issued 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). Kroger had a net margin of 0.71% and a return on equity of 44.33%. The company had revenue of $46.12 billion during the quarter, compared to the consensus estimate of $45.59 billion. During the same period in the previous year, the company earned $1.49 EPS. Kroger'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 predict that The Kroger Co. will post 5.21 earnings per share for the current fiscal year.

Kroger Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, September 1st. Stockholders of record on Saturday, August 15th will be paid a $0.39 dividend. This represents a $1.56 dividend on an annualized basis and a dividend yield of 2.7%. The ex-dividend date is Friday, August 14th. This is a positive change from Kroger's previous quarterly dividend of $0.35. Kroger's dividend payout ratio is currently 91.76%.

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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