OMERS ADMINISTRATION Corp Takes Position in The Kroger Co. $KR

Key Points

• OMERS Administration Corp. bought 38,548 Kroger shares worth approximately $2.14 million during the second quarter. Institutional investors now own about 80.93% of Kroger’s outstanding stock.
• Analysts maintain a generally positive view, with a consensus rating of “Moderate Buy” and an average price target of $72, compared with Kroger’s recent share price of $58.59.
• Kroger reported quarterly revenue of $46.12 billion, up 2.2% year over year, while narrowly missing earnings estimates. The company also raised its quarterly dividend to $0.39 per share, implying a 2.7% annualized yield.

OMERS ADMINISTRATION Corp purchased a new position in shares of The Kroger Co. (NYSE:KR - Free Report) during the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund purchased 38,548 shares of the company's stock, valued at approximately $2,141,000.

Other hedge funds have also recently bought and sold shares of the company. SGL Investment Advisors Inc. acquired a new position in shares of Kroger in the second quarter valued at approximately $2,764,000. Allstate Corp grew its stake in Kroger by 108.5% in the 4th quarter. Allstate Corp now owns 47,991 shares of the company's stock worth $2,998,000 after acquiring an additional 24,976 shares during the period. Mitsubishi UFJ Asset Management Co. Ltd. acquired a new position in Kroger in the 2nd quarter valued at $76,633,000. Conning Inc. boosted its holdings in shares of Kroger by 10,178.7% during the fourth quarter. Conning Inc. now owns 507,459 shares of the company's stock worth $31,706,000 after purchasing an additional 502,522 shares during the last quarter. Finally, North Dakota State Investment Board purchased a new stake in shares of Kroger in the fourth quarter valued at $1,299,000. 80.93% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several analysts have commented on the company. Evercore restated an "outperform" rating and issued a $78.00 price target on shares of Kroger in a report on Tuesday, July 7th. UBS Group set a $63.00 target price on shares of Kroger and gave the stock a "neutral" rating in a research report on Monday, June 22nd. Morgan Stanley lowered their target price on shares of Kroger from $73.00 to $67.00 and set an "equal weight" rating for the company in a report on Monday, June 22nd. Weiss Ratings downgraded shares of Kroger from a "hold (c+)" rating to a "hold (c)" rating in a research note on Thursday, June 18th. Finally, Barclays set a $61.00 price target on shares of Kroger and gave the company an "equal weight" rating in a report on Monday, June 22nd. Ten equities 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.com, the company currently has an average rating of "Moderate Buy" and a consensus price target of $72.00.

Kroger Stock Performance

NYSE KR opened at $58.59 on Thursday. The company has a debt-to-equity ratio of 2.43, a current ratio of 0.79 and a quick ratio of 0.39. The Kroger Co. has a 1-year low of $54.15 and a 1-year high of $76.58. The firm has a market capitalization of $35.90 billion, a P/E ratio of 34.46, a P/E/G ratio of 1.57 and a beta of 0.43. The business's 50-day simple moving average is $57.61 and its 200-day simple moving average is $64.57.

Kroger (NYSE:KR - Get Free Report) last announced its quarterly earnings results on Thursday, June 18th. The company reported $1.58 earnings per share for the quarter, missing analysts' consensus estimates of $1.59 by ($0.01). Kroger had a net margin of 0.71% and a return on equity of 44.33%. The business had revenue of $46.12 billion for the quarter, compared to analyst estimates of $45.59 billion. During the same period last year, the firm earned $1.49 earnings per share. The company's quarterly revenue was up 2.2% on a year-over-year basis. Kroger has set its FY 2026 guidance at 5.100-5.30 EPS. Equities analysts predict that The Kroger Co. will post 5.21 EPS for the current year.

Kroger Increases Dividend

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

More Kroger News

Here are the key news stories impacting Kroger this week:

• Positive Sentiment: Instacart partnership expands omnichannel potential. Kroger has rolled out combined grocery and eligible prescription delivery nationwide across more than 2,200 pharmacies and nearly all major banners, including Fred Meyer, Ralphs and Harris Teeter. The service could increase customer convenience, order frequency and pharmacy engagement while strengthening Kroger’s digital ecosystem. Kroger Rolls Out Combined Grocery And Prescription Delivery Nationwide
• Positive Sentiment: Store investments support longer-term sales capacity. Kroger plans new stores in Dearborn and Commerce Township, Michigan, and is investing millions of dollars in store remodels and local initiatives. These projects are positive for market presence and customer experience, although their financial contribution is likely to develop gradually. Kroger Adding New Stores in Dearborn and Commerce Township in 2027
• Neutral Sentiment: Automation and private-label visibility provide incremental support. Reports that Kroger is rolling out inventory robots and continued attention to its store-brand products point to efforts to improve labor productivity, inventory management and value perception. The articles do not indicate a near-term earnings impact. Kroger Rolls Out Inventory Robots
• Negative Sentiment: $17 million pharmacy settlement weighs on sentiment. Multiple outlets report that eligible customers may receive payments under a settlement involving alleged prescription-price or copay overcharges. The settlement appears manageable relative to Kroger’s size, but continued coverage could create reputational concerns around its pharmacy business. A shopper’s complaint about an underweight beef package is similarly negative publicity, though unlikely to materially affect earnings. Kroger Pharmacy Settlement Coverage

Kroger Profile

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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