Louisiana State Employees Retirement System Takes Position in The Kroger Co. $KR

Key Points

• Louisiana State Employees Retirement System opened a new position in Kroger, buying 29,700 shares worth about $2.15 million in the first quarter. Other institutional investors also added to or initiated stakes, and roughly 80.93% of the stock is held by institutions and hedge funds.
• Kroger’s latest quarter was mixed: it beat revenue estimates with $46.12 billion in sales, but missed EPS expectations by $0.01. The company also raised its quarterly dividend to $0.39 per share from $0.35.
• Analyst sentiment remains split, with a consensus rating of Moderate Buy and an average target price of $71.94, but some firms have recently lowered targets. Kroger’s stock was down about 3% and was trading near its 12-month low as investors weighed positive initiatives like rewards-program expansion against recall and pricing concerns.

Louisiana State Employees Retirement System acquired a new position in shares of The Kroger Co. (NYSE:KR - Free Report) in the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The firm acquired 29,700 shares of the company's stock, valued at approximately $2,149,000.

Other institutional investors have also made changes to their positions in the company. Brighton Jones LLC grew its position in Kroger by 27.3% during the fourth quarter. Brighton Jones LLC now owns 15,733 shares of the company's stock valued at $962,000 after purchasing an additional 3,373 shares in the last quarter. Woodline Partners LP boosted its stake in shares of Kroger by 40.7% during the 1st quarter. Woodline Partners LP now owns 56,243 shares of the company's stock valued at $3,807,000 after buying an additional 16,270 shares during the period. Sivia Capital Partners LLC acquired a new stake in shares of Kroger during the 2nd quarter valued at $201,000. NewEdge Advisors LLC grew its holdings in shares of Kroger by 11.5% during the 2nd quarter. NewEdge Advisors LLC now owns 97,288 shares of the company's stock valued at $6,978,000 after acquiring an additional 10,051 shares in the last quarter. Finally, Nebula Research & Development LLC acquired a new position in shares of Kroger in the second quarter worth $1,840,000. 80.93% of the stock is currently owned by institutional investors and hedge funds.

Key Stories Impacting Kroger

Here are the key news stories impacting Kroger this week:

• Positive Sentiment: Kroger is expanding its rewards program, giving shoppers new ways to redeem points for groceries and fuel. That could help boost customer loyalty, repeat visits, and basket sizes. Kroger Revamps Rewards Program: New Ways to Use Points for Groceries and Fuel
• Positive Sentiment: The company is also rolling out an exclusive celebrity product line and additional seasonal/holiday promotions, suggesting Kroger is trying to drive traffic and differentiate its stores beyond basic grocery price competition. Kroger rolls out exclusive celebrity line to win back shoppers
• Neutral Sentiment: Media coverage highlighted Kroger’s digital coupons and holiday merchandising, which reinforces its focus on value but does not materially change the near-term outlook.
• Negative Sentiment: Fresh price-target cuts are adding caution: Morgan Stanley recently kept an Equal Weight rating but lowered its target to $67 from $73, signaling more limited upside than before. Is The Kroger Co. (KR) One of the Best Stocks to Buy Now For Good Returns amid Price Target Cuts?
• Negative Sentiment: Kroger also faces an ongoing product recall warning involving chicken sold at Kroger and Fred Meyer that may contain an undeclared allergen, which can create reputational risk and a small headwind for sentiment. Check Your Freezer: Kroger and Fred Meyer Chicken May Contain Undeclared Allergen

Analysts Set New Price Targets

A number of analysts recently issued reports on the company. UBS Group set a $63.00 price objective on Kroger and gave the company a "neutral" rating in a research report on Monday, June 22nd. Barclays set a $61.00 price target on Kroger and gave the company an "equal weight" rating in a report on Monday, June 22nd. Jefferies Financial Group reaffirmed a "buy" rating and set a $80.00 price objective on shares of Kroger in a research report on Wednesday, June 3rd. Weiss Ratings lowered shares of Kroger from a "hold (c+)" rating to a "hold (c)" rating in a research note on Thursday, June 18th. Finally, Roth Mkm reissued a "buy" rating and set a $78.00 target price (up from $75.00) on shares of Kroger in a research report on Friday, March 6th. Nine analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the company. According to MarketBeat.com, Kroger has a consensus rating of "Moderate Buy" and a consensus target price of $71.94.

Kroger Stock Down 3.0%

NYSE KR opened at $55.99 on Tuesday. The Kroger Co. has a twelve month low of $55.60 and a twelve month high of $76.58. The stock has a market cap of $34.30 billion, a PE ratio of 32.94, a PEG ratio of 1.55 and a beta of 0.43. The firm has a 50-day simple moving average of $64.22 and a 200 day simple moving average of $66.03. The company has a debt-to-equity ratio of 2.43, a quick ratio of 0.39 and a current ratio of 0.79.

Kroger (NYSE:KR - Get Free Report) last posted its quarterly earnings results 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 firm had revenue of $46.12 billion during the quarter, compared to analyst estimates of $45.59 billion. During the same period last year, the company earned $1.49 EPS. The company's revenue was up 2.2% on a year-over-year basis. Kroger has set its FY 2026 guidance at 5.100-5.30 EPS. On average, research analysts forecast that The Kroger Co. will post 5.22 EPS for the current year.

Kroger Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, September 1st. Shareholders of record on Saturday, August 15th will be paid a dividend of $0.39 per share. This is an increase from Kroger's previous quarterly dividend of $0.35. This represents a $1.56 dividend on an annualized basis and a yield of 2.8%. The ex-dividend date is Friday, August 14th. Kroger's dividend payout ratio is presently 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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