Grantham Mayo Van Otterloo & Co. LLC Sells 66,636 Shares of The Kroger Co. $KR

Key Points

• Grantham Mayo Van Otterloo & Co. LLC cut its Kroger stake by 21.5% in Q3, selling 66,636 shares and leaving 243,627 shares valued at about $16.42 million.
• Kroger posted a Q4 EPS beat, set FY‑26 adjusted EPS guidance of $5.10–$5.30 and added buybacks (an extra $2B on top of a $7.5B program), but revenue slightly missed estimates and the dividend carries a high payout ratio (~91.5%), creating both catalysts and payout risk.

Grantham Mayo Van Otterloo & Co. LLC reduced its holdings in The Kroger Co. (NYSE:KR - Free Report) by 21.5% in the third quarter, according to the company in its most recent Form 13F filing with the SEC. The institutional investor owned 243,627 shares of the company's stock after selling 66,636 shares during the quarter. Grantham Mayo Van Otterloo & Co. LLC's holdings in Kroger were worth $16,423,000 at the end of the most recent quarter.

Several other institutional investors have also recently added to or reduced their stakes in the business. Norges Bank acquired a new position in Kroger during the second quarter worth $518,267,000. Allianz Asset Management GmbH grew its holdings in shares of Kroger by 66.6% during the third quarter. Allianz Asset Management GmbH now owns 5,255,084 shares of the company's stock valued at $354,245,000 after buying an additional 2,100,444 shares during the last quarter. Nordea Investment Management AB grew its holdings in shares of Kroger by 6.0% during the third quarter. Nordea Investment Management AB now owns 4,680,219 shares of the company's stock valued at $311,843,000 after buying an additional 265,127 shares during the last quarter. Bank of New York Mellon Corp increased its position in shares of Kroger by 1.0% during the third quarter. Bank of New York Mellon Corp now owns 4,309,093 shares of the company's stock worth $290,476,000 after acquiring an additional 41,904 shares in the last quarter. Finally, Franklin Resources Inc. increased its position in shares of Kroger by 7.9% during the second quarter. Franklin Resources Inc. now owns 4,126,866 shares of the company's stock worth $296,028,000 after acquiring an additional 300,784 shares in the last quarter. 80.93% of the stock is owned by institutional investors and hedge funds.

Kroger News Roundup

Here are the key news stories impacting Kroger this week:

• Positive Sentiment: Q4 results beat on profit and margins: Kroger reported adjusted EPS above estimates, delivered gross‑margin expansion and 20% e‑commerce growth; management also rolled out FY‑26 adjusted EPS guidance above consensus and approved further buybacks — a clear catalyst for earnings per‑share growth. PR Newswire
• Positive Sentiment: Large, sustained capital returns: Management completed accelerated repurchases in 2025 and the board approved an additional $2B repurchase authorization on top of a $7.5B program; analysts and commentators say buybacks plus a growing dividend underpin long‑term per‑share upside. MarketBeat
• Positive Sentiment: Street support and upgrades: Several shops have reiterated/raised ratings and price targets (e.g., Roth MKM reaffirmed buy with a $78 PT; Telsey lifted its target), reinforcing positive sentiment into the print. Benzinga
• Positive Sentiment: Unusual bullish options flow: Call buying spiked (large single‑day activity), suggesting some traders are positioning for additional upside or event‑driven moves.
• Neutral Sentiment: New CEO’s playbook: Greg Foran is pushing lower prices, sharper promotions, AI and e‑commerce improvements to accelerate sales — a credible strategic pivot but execution and timing remain uncertain. FoodBusinessNews
• Neutral Sentiment: Analyst consensus is broadly constructive (moderate buy), but median price targets leave limited near‑term upside absent stronger top‑line revisions. AmericanBankingNews
• Negative Sentiment: Revenue and sales outlook are muted: Q4 revenue slightly missed estimates and management offered modest identical‑sales guidance for 2026 (1–2% ex‑fuel), tempering a rally based solely on EPS strength. Retail Insight Network
• Negative Sentiment: Product recalls: Kroger‑branded and partner rice/frozen products were included in a glass‑fragment recall, creating short‑term inventory, sales and reputational headwinds in affected markets. MSN
• Negative Sentiment: Labor and legal exposure: Class‑action suits over e‑commerce worker classification and heightened union friction (Teamsters commentary) add regulatory/legal risk and potential costs. GroceryDive
• Negative Sentiment: Dividend sustainability question: Commentary flagged a high payout ratio on a GAAP basis (dividend > GAAP net income), which could worry income investors despite strong cash flow and buybacks. 24/7 Wall St.

Kroger Price Performance

Shares of NYSE:KR opened at $74.31 on Monday. The company has a quick ratio of 0.42, a current ratio of 0.80 and a debt-to-equity ratio of 2.66. The firm has a market capitalization of $47.03 billion, a PE ratio of 48.57, a P/E/G ratio of 1.89 and a beta of 0.62. The Kroger Co. has a twelve month low of $58.60 and a twelve month high of $74.90. The company has a 50-day moving average price of $65.35 and a two-hundred day moving average price of $65.85.

Kroger (NYSE:KR - Get Free Report) last posted its quarterly earnings results on Thursday, March 5th. The company reported $1.28 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.20 by $0.08. The company had revenue of $34.73 billion for the quarter, compared to analyst estimates of $35.10 billion. Kroger had a net margin of 0.69% and a return on equity of 41.08%. The company's quarterly revenue was up 1.2% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $1.14 earnings per share. Kroger has set its FY 2026 guidance at 5.100-5.300 EPS. Equities analysts forecast that The Kroger Co. will post 4.44 EPS for the current year.

Kroger Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Sunday, March 1st. Shareholders of record on Friday, February 13th were issued a dividend of $0.35 per share. The ex-dividend date of this dividend was Friday, February 13th. This represents a $1.40 dividend on an annualized basis and a yield of 1.9%. Kroger's payout ratio is presently 91.50%.

Analysts Set New Price Targets

Several equities analysts recently weighed in on the stock. Wall Street Zen cut shares of Kroger from a "buy" rating to a "hold" rating in a research report on Saturday, December 27th. Jefferies Financial Group reissued a "buy" rating and set a $82.00 price objective on shares of Kroger in a report on Thursday. UBS Group reissued a "neutral" rating and issued a $70.00 price objective (down from $74.00) on shares of Kroger in a research note on Friday, December 5th. Wells Fargo & Company lowered Kroger from an "overweight" rating to an "equal weight" rating and dropped their target price for the company from $70.00 to $68.00 in a report on Wednesday, February 25th. Finally, Citigroup reaffirmed a "neutral" rating and set a $68.00 target price (down from $74.00) on shares of Kroger in a research report on Wednesday, December 10th. Eight investment analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $74.38.

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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