Intech Investment Management LLC Lowers Stake in The Kroger Co. $KR

Key Points

• Intech Investment Management LLC reduced its Kroger stake by 32.6% in the fourth quarter, selling 123,167 shares and leaving it with 254,833 shares valued at about $15.9 million.
• Analysts remain split on Kroger, with an average rating of “Moderate Buy” and a consensus price target of $74.87, though Wells Fargo recently downgraded the stock while others reaffirmed buy calls.
• Kroger reported quarterly EPS of $1.28, topping expectations, but revenue came in slightly below estimates; the company also declared a $0.35 quarterly dividend for a 2.2% yield.

Intech Investment Management LLC cut its position in shares of The Kroger Co. (NYSE:KR - Free Report) by 32.6% in the fourth quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 254,833 shares of the company's stock after selling 123,167 shares during the quarter. Intech Investment Management LLC's holdings in Kroger were worth $15,922,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also modified their holdings of the company. Foundations Investment Advisors LLC grew its holdings in shares of Kroger by 20.3% during the fourth quarter. Foundations Investment Advisors LLC now owns 72,780 shares of the company's stock worth $4,547,000 after buying an additional 12,304 shares in the last quarter. Connecticut Capital Management Group LLC acquired a new stake in shares of Kroger in the fourth quarter worth approximately $268,000. Texas Capital Bank Wealth Management Services Inc boosted its position in shares of Kroger by 126.0% in the fourth quarter. Texas Capital Bank Wealth Management Services Inc now owns 12,295 shares of the company's stock worth $768,000 after acquiring an additional 6,854 shares during the last quarter. Community Bank & Trust Waco Texas boosted its position in shares of Kroger by 3.6% in the fourth quarter. Community Bank & Trust Waco Texas now owns 19,521 shares of the company's stock worth $1,220,000 after acquiring an additional 675 shares during the last quarter. Finally, Millington Financial Advisors LLC boosted its position in shares of Kroger by 10.4% in the fourth quarter. Millington Financial Advisors LLC now owns 35,336 shares of the company's stock worth $2,385,000 after acquiring an additional 3,335 shares during the last quarter. 80.93% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several equities research analysts recently issued reports on KR shares. Barclays reissued a "positive" rating on shares of Kroger in a research report on Monday, February 9th. Roth Mkm reissued a "buy" rating and issued a $78.00 target price (up from $75.00) on shares of Kroger in a research report on Friday, March 6th. Wells Fargo & Company cut shares of Kroger from an "overweight" rating to an "equal weight" rating and decreased their target price for the stock from $70.00 to $68.00 in a research report on Wednesday, February 25th. Jefferies Financial Group reissued a "buy" rating and issued a $82.00 target price on shares of Kroger in a research report on Thursday, March 5th. Finally, Citigroup raised their target price on shares of Kroger from $68.00 to $71.00 and gave the stock a "neutral" rating in a research report on Monday, March 9th. Eight investment analysts have rated the stock with a Buy rating and eight have given a Hold rating to the company. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $74.87.

Kroger Trading Down 2.2%

Shares of KR stock opened at $62.25 on Friday. The stock has a market cap of $38.14 billion, a price-to-earnings ratio of 40.69, a price-to-earnings-growth ratio of 1.69 and a beta of 0.46. 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 Kroger Co. has a fifty-two week low of $58.60 and a fifty-two week high of $76.58. The firm's 50 day moving average price is $68.56 and its two-hundred day moving average price is $66.75.

Kroger (NYSE:KR - Get Free Report) last announced its quarterly earnings results on Thursday, March 5th. The company reported $1.28 earnings per share for the quarter, beating analysts' consensus estimates of $1.20 by $0.08. The firm had revenue of $34.73 billion for the quarter, compared to analysts' expectations of $35.10 billion. Kroger had a net margin of 0.69% and a return on equity of 41.08%. Kroger's revenue was up 1.2% compared to the same quarter last year. During the same period in the previous year, the company posted $1.14 earnings per share. Kroger has set its FY 2026 guidance at 5.100-5.300 EPS. On average, analysts anticipate that The Kroger Co. will post 5.24 EPS for the current year.

Kroger Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, June 1st. Shareholders of record on Friday, May 15th will be given a dividend of $0.35 per share. This represents a $1.40 dividend on an annualized basis and a yield of 2.2%. The ex-dividend date of this dividend is Friday, May 15th. Kroger's payout ratio is 91.50%.

Kroger News Summary

Here are the key news stories impacting Kroger this week:

• Positive Sentiment: Zacks pieces frame Kroger as potentially undervalued and a possible dividend/value pick versus Walmart, which may support investor interest in the stock. Are Investors Undervaluing The Kroger Co. (KR) Right Now?
• Positive Sentiment: Kroger received a 2026 Gold Bell Seal for Workplace Mental Health for the fifth straight year, reinforcing its employer brand and suggesting continued focus on workforce stability and culture. Kroger Earns Bell Seal for Workplace Mental Health for Fifth Consecutive Year
• Neutral Sentiment: Additional commentary highlights KR as a candidate for dividend-focused investors, but this is largely a reiteration of Kroger’s existing income profile rather than a fresh catalyst. Kroger (KR) Could Be a Great Choice
• Neutral Sentiment: Industry comparison articles such as KR vs. WMT are more about relative valuation than a company-specific development, so they are likely having only a limited direct impact. KR vs. WMT: Which Stock Is the Better Value Option?
• Negative Sentiment: A report that Kroger is facing a costly store fix after a federal lawsuit could pressure margins and raise concerns about legal and compliance-related expenses. Kroger forced to make costly store fix after federal lawsuit
• Negative Sentiment: News that Kroger’s North American Ocado fulfillment centers were shut in part due to weaker-than-expected demand is a reminder of previous technology/investment missteps, which may weigh on investor confidence. UK grocer Asda taps Ocado to revamp online business
• Negative Sentiment: Reports of multiple executive departures under new CEO Greg Foran add leadership uncertainty at a time when the company is still being reshaped. Kroger loses four top executives under new CEO Greg Foran

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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