OP Asset Management Ltd Takes Position in The Kroger Co. $KR

Key Points

• OP Asset Management Ltd disclosed a new position in Kroger during the first quarter, buying 64,836 shares worth about $4.69 million.
• Kroger raised its quarterly dividend by 11% to $0.39 per share, reinforcing confidence in cash flow and extending its streak of annual dividend increases.
• The company’s latest earnings showed revenue beat expectations at $46.12 billion, but EPS slightly missed estimates at $1.58 versus $1.59, while analysts currently rate the stock a Moderate Buy with an average target of $71.94.

OP Asset Management Ltd acquired a new stake in shares of The Kroger Co. (NYSE:KR - Free Report) during the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor acquired 64,836 shares of the company's stock, valued at approximately $4,692,000.

A number of other large investors have also recently made changes to their positions in KR. Wellington Management Group LLP increased its position in shares of Kroger by 61.1% during the third quarter. Wellington Management Group LLP now owns 33,367,551 shares of the company's stock valued at $2,249,307,000 after acquiring an additional 12,652,261 shares during the last quarter. Norges Bank bought a new position in shares of Kroger during the 4th quarter worth $470,561,000. Worldquant Millennium Advisors LLC increased its stake in shares of Kroger by 299.6% in the second quarter. Worldquant Millennium Advisors LLC now owns 2,420,495 shares of the company's stock worth $173,622,000 after purchasing an additional 1,814,721 shares in the last quarter. Alyeska Investment Group L.P. grew its stake in Kroger by 48.6% in the 4th quarter. Alyeska Investment Group L.P. now owns 4,445,479 shares of the company's stock valued at $277,754,000 after buying an additional 1,453,966 shares in the last quarter. Finally, GQG Partners LLC grew its position in shares of Kroger by 11.3% in the fourth quarter. GQG Partners LLC now owns 13,398,072 shares of the company's stock valued at $837,113,000 after purchasing an additional 1,360,946 shares in the last quarter. 80.93% of the stock is owned by institutional investors.

Key Headlines Impacting Kroger

Here are the key news stories impacting Kroger this week:

• Positive Sentiment: Kroger raised its quarterly dividend by 11% to $0.39 per share, signaling confidence in cash flow and extending its record of annual dividend increases. Kroger's Board of Directors Raises Quarterly Dividend by 11%
• Positive Sentiment: The company expanded its rewards program so shoppers can now redeem points for dollars off groceries in-store and online, not just fuel discounts, which could help boost customer retention and spending frequency. Kroger Rewards Program Expands with New Ways to Save
• Positive Sentiment: Kroger also announced additional loyalty-program enhancements and promotional tie-ins, including fuel points being usable for groceries, reinforcing its value proposition at a time when consumers remain price-sensitive. Kroger expands loyalty program: What you need to know
• Neutral Sentiment: Kroger updated board leadership and director compensation, but the move appears administrative and is unlikely to materially affect near-term fundamentals. Kroger Updates Board Leadership Role and Director Compensation
• Neutral Sentiment: Management is leaning into seasonal merchandising and marketing around July 4th, which supports sales but is not a major new catalyst. Kroger Fires Up Fourth of July Celebrations with Trending "Flight" Food Experiences
• Negative Sentiment: A recalled chicken product over allergens is a consumer-safety issue that could create reputational noise, though the direct financial impact looks limited. Kroger, Fred Meyer chicken recalled over allergens

Kroger Stock Performance

Shares of NYSE KR opened at $57.84 on Friday. The firm has a 50 day moving average of $64.45 and a 200 day moving average of $66.06. The company has a current ratio of 0.79, a quick ratio of 0.39 and a debt-to-equity ratio of 2.43. The firm has a market capitalization of $35.43 billion, a price-to-earnings ratio of 34.02, a price-to-earnings-growth ratio of 1.55 and a beta of 0.42. The Kroger Co. has a 12-month low of $55.60 and a 12-month high of $76.58.

Kroger (NYSE:KR - Get Free Report) last announced its earnings results on Thursday, June 18th. The company reported $1.58 EPS for the quarter, missing analysts' consensus estimates of $1.59 by ($0.01). The business had revenue of $46.12 billion for the quarter, compared to analysts' expectations of $45.59 billion. Kroger had a net margin of 0.71% and a return on equity of 44.33%. The firm's quarterly revenue was up 2.2% on a year-over-year basis. During the same period in the prior year, the company posted $1.49 earnings per share. Kroger has set its FY 2026 guidance at 5.100-5.30 EPS. On average, research analysts anticipate that The Kroger Co. will post 5.22 earnings per share for the current year.

Kroger Increases Dividend

The business also recently announced 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 of this dividend is Friday, August 14th. This represents a $1.56 dividend on an annualized basis and a yield of 2.7%. This is an increase from Kroger's previous quarterly dividend of $0.35. Kroger's payout ratio is 91.76%.

Wall Street Analyst Weigh In

A number of research firms have recently commented on KR. Barclays set a $61.00 price target on shares of Kroger and gave the company an "equal weight" rating in a research report on Monday. Erste Group Bank cut Kroger from a "buy" rating to a "hold" rating in a research note on Monday, April 27th. JPMorgan Chase & Co. lowered their price target on shares of Kroger from $72.00 to $70.00 and set a "neutral" rating for the company in a report on Thursday, June 11th. BMO Capital Markets reaffirmed a "market perform" rating and set a $70.00 price target on shares of Kroger in a research report on Thursday, March 5th. Finally, Guggenheim set a $71.00 price target on shares of Kroger and gave the company a "buy" rating in a research report on Monday. Nine investment analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $71.94.

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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