Joseph Group Capital Management Buys 15,541 Shares of The Kroger Co. $KR

Key Points

• Joseph Group Capital Management increased its Kroger stake 20.8%, adding 15,541 shares to hold 90,212 shares valued at about $5.29 million. Institutional investors collectively own 80.93% of the stock.
• Kroger beat quarterly EPS estimates, reporting $1.09 per share versus $1.05 expected, while revenue of $34.62 billion was slightly below forecasts; sales rose 2% year over year. The company also declared a quarterly dividend of $0.39 per share.
• Kroger faces potential pressure from its price gap with Walmart: cited Consumer Reports data put Kroger’s prices 14.8% higher, which could challenge its appeal to price-sensitive shoppers. Separately, EVP Mary Adcock sold 72,901 shares, reducing her position by 29.38%.

Joseph Group Capital Management increased its stake in The Kroger Co. (NYSE:KR - Free Report) by 20.8% during the 3rd quarter, according to its most recent Form 13F filing with the SEC. The fund owned 90,212 shares of the company's stock after acquiring an additional 15,541 shares during the period. Joseph Group Capital Management's holdings in Kroger were worth $5,288,000 as of its most recent SEC filing.

A number of other institutional investors have also recently bought and sold shares of KR. Axiom Investment Management LLC purchased a new position in Kroger during the first quarter worth approximately $31,000. North Point Portfolio Managers Corp OH acquired a new position in shares of Kroger in the 3rd quarter valued at $30,000. GK Wealth Management LLC acquired a new position in shares of Kroger in the 3rd quarter valued at $33,000. Salomon & Ludwin LLC boosted its holdings in shares of Kroger by 979.6% in the 3rd quarter. Salomon & Ludwin LLC now owns 583 shares of the company's stock valued at $34,000 after purchasing an additional 529 shares during the last quarter. Finally, Pinnacle Bancorp Inc. grew its stake in shares of Kroger by 75.0% during the 3rd quarter. Pinnacle Bancorp Inc. now owns 700 shares of the company's stock valued at $41,000 after buying an additional 300 shares during the period. 80.93% of the stock is currently owned by hedge funds and other institutional investors.

Insiders Place Their Bets

In related news, EVP Mary Adcock sold 72,901 shares of the company's stock in a transaction on Friday, September 18th. The shares were sold at an average price of $60.70, for a total transaction of $4,425,090.70. Following the completion of the sale, the executive vice president directly owned 175,233 shares of the company's stock, valued at approximately $10,636,643.10. This represents a 29.38% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Company insiders own 0.41% of the company's stock.

Key Kroger News

Here are the key news stories impacting Kroger this week:

• Positive Sentiment: Wall Street Zen raised Kroger’s stock rating to Buy, providing a favorable analyst signal. Kroger Stock Rating Raised to Buy at Wall Street Zen
• Neutral Sentiment: Kroger is offering veterans and military families a 10% Veterans Day discount. The promotion may support customer goodwill, but its financial impact is likely limited. Kroger Offers Veterans Day Discount
• Neutral Sentiment: Reports of vehicles crashing into Kroger store entrances concern individual locations and do not indicate a company-wide operating issue. A meal-prep video featuring Kroger groceries is also unlikely to materially affect the stock. Driver Cited After Crashing Into Local Kroger Honeysuckle Meal-Preps With Kroger Groceries
• Negative Sentiment: Coverage underscores Kroger’s challenge competing on price: Consumer Reports put its prices 14.8% above Walmart’s, and Kroger’s CEO has said the company is not trying to be the cheapest. A persistent gap could make it harder to retain price-sensitive shoppers or grow sales, even if competing on price is not Kroger’s strategy. Kroger’s Price Gap With Walmart Regional Grocers’ Pricing Challenge

Kroger Trading Up 0.6%

NYSE KR opened at $68.14 on Tuesday. The Kroger Co. has a one year low of $54.15 and a one year high of $76.58. The company's 50 day moving average price is $61.85 and its 200 day moving average price is $63.75. The company has a debt-to-equity ratio of 2.59, a quick ratio of 0.31 and a current ratio of 0.70. The firm has a market capitalization of $40.24 billion, a price-to-earnings ratio of 37.03, a PEG ratio of 1.94 and a beta of 0.36.

Kroger (NYSE:KR - Get Free Report) last announced its quarterly earnings results on Friday, September 11th. The company reported $1.09 earnings per share for the quarter, beating analysts' consensus estimates of $1.05 by $0.04. Kroger had a net margin of 0.73% and a return on equity of 49.90%. The firm had revenue of $34.62 billion for the quarter, compared to analysts' expectations of $34.64 billion. During the same period in the previous year, the company posted $1.04 earnings per share. Kroger's revenue was up 2.0% compared to the same quarter last year. Kroger has set its FY 2026 guidance at 5.100-5.300 EPS. On average, sell-side analysts predict that The Kroger Co. will post 5.20 EPS for the current year.

Kroger Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, December 1st. Investors of record on Monday, November 16th will be issued a dividend of $0.39 per share. The ex-dividend date is Monday, November 16th. This represents a $1.56 annualized dividend and a dividend yield of 2.3%. Kroger's payout ratio is presently 84.78%.

Wall Street Analyst Weigh In

KR has been the subject of a number of research analyst reports. Telsey Advisory Group dropped their price objective on Kroger from $78.00 to $75.00 and set an "outperform" rating for the company in a report on Monday, September 14th. Wells Fargo & Company set a $60.00 target price on Kroger and gave the stock an "equal weight" rating in a research report on Wednesday, October 21st. Citigroup reiterated a "neutral" rating and issued a $57.00 target price (down from $61.00) on shares of Kroger in a report on Tuesday, September 1st. Melius Research set a $80.00 price target on Kroger and gave the company a "buy" rating in a research report on Tuesday, September 29th. Finally, Weiss Ratings reissued a "hold (c)" rating on shares of Kroger in a research report on Monday, September 14th. Twelve research analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company's stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $70.35.

About Kroger

The Kroger Co is a U.S. grocery retailer founded in Cincinnati, Ohio, in 1883 by Bernard Kroger. It operates supermarkets and other grocery formats across the United States under banners including Kroger, Ralphs, Fred Meyer, Harris Teeter, King Soopers, and Smith's.

Alongside groceries and household essentials, Kroger stores offer services such as pharmacies and fuel centers. The company also sells products under its own private-label brands and produces many of those items through its food manufacturing operations.

Kroger serves customers through physical stores and digital channels, including online ordering for pickup and delivery.

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