Palmer Knight Co Acquires New Stake in The Kroger Co. $KR

Key Points

• Palmer Knight Co. acquired 102,618 Kroger shares worth approximately $5.7 million in the second quarter, making Kroger 2.2% of its portfolio. Institutional investors and hedge funds collectively own 80.93% of Kroger.
• Analyst sentiment remains moderately positive, with a consensus rating of “Moderate Buy” and a $72 average price target, despite several firms recently lowering their targets.
• Kroger reported quarterly revenue of $46.12 billion, up 2.2% year over year, but narrowly missed EPS estimates. Shares opened at $56.39, while the company raised its quarterly dividend to $0.39, implying a 2.8% annual yield.

Palmer Knight Co acquired a new position in shares of The Kroger Co. (NYSE:KR - Free Report) in the second quarter, according to the company in its most recent filing with the SEC. The firm acquired 102,618 shares of the company's stock, valued at approximately $5,698,000. Kroger makes up 2.2% of Palmer Knight Co's investment portfolio, making the stock its 25th biggest holding.

Several other institutional investors have also recently added to or reduced their stakes in KR. Financial Engines Advisors L.L.C. raised its position in shares of Kroger by 4.5% in the fourth quarter. Financial Engines Advisors L.L.C. now owns 3,537 shares of the company's stock valued at $221,000 after buying an additional 153 shares during the last quarter. PFG Investments LLC lifted its stake in shares of Kroger by 3.3% during the first quarter. PFG Investments LLC now owns 4,899 shares of the company's stock valued at $354,000 after buying an additional 157 shares during the period. Smartleaf Asset Management LLC boosted its position in Kroger by 1.5% during the fourth quarter. Smartleaf Asset Management LLC now owns 10,747 shares of the company's stock worth $674,000 after acquiring an additional 162 shares during the last quarter. Stephens Inc. AR boosted its position in Kroger by 1.0% during the fourth quarter. Stephens Inc. AR now owns 17,995 shares of the company's stock worth $1,124,000 after acquiring an additional 174 shares during the last quarter. Finally, ROI Financial Advisors LLC grew its stake in Kroger by 2.0% in the 1st quarter. ROI Financial Advisors LLC now owns 8,943 shares of the company's stock worth $647,000 after acquiring an additional 175 shares during the period. Institutional investors and hedge funds own 80.93% of the company's stock.

Key Kroger News

Here are the key news stories impacting Kroger this week:

• Positive Sentiment: Kroger is opening new Marketplace locations in metro Atlanta, expanding its larger-format grocery, general merchandise and prepared-food offering. A new store is also planned for Lenoir City, Tennessee, supporting the company’s long-term growth and local market presence. Kroger opens new Marketplace locations in metro Atlanta New Kroger grocery store coming to Lenoir City
• Neutral Sentiment: Rebel Creamery, whose ice cream products are sold at Kroger and other major retailers, filed for bankruptcy while appealing a multimillion-dollar judgment. The development could affect product availability, but appears unlikely to have a material direct impact on Kroger’s finances. Ice cream brand sold at Kroger files for bankruptcy
• Negative Sentiment: Kroger reportedly plans to close 60 U.S. stores in 2026, including locations tied to its Fry’s banner. The closures may improve efficiency and profitability, but they also signal weak store economics and could reduce sales and customer reach. Kroger to Close 60 Stores
• Negative Sentiment: Reports and social-media reactions highlight declining Kroger store traffic, raising concerns about competitive pressure, consumer behavior and the company’s ability to sustain sales growth. Kroger’s declining traffic
• Negative Sentiment: A jalapeño-related salmonella recall involving products sold at Kroger and other grocers creates potential reputational, compliance and customer-trust risks, although the financial impact is not yet clear. Products recalled over jalapeño salmonella outbreak
• Negative Sentiment: Kroger’s co-branded credit card with U.S. Bank is reportedly being discontinued, including changes to gas-discount benefits. Ending the program may frustrate shoppers and weaken loyalty incentives. Kroger’s credit card is going away

Analyst Ratings Changes

KR has been the topic of a number of recent analyst reports. Jefferies Financial Group reissued a "buy" rating and set a $80.00 price target on shares of Kroger in a research note on Wednesday, June 3rd. JPMorgan Chase & Co. lowered their price objective on Kroger from $72.00 to $70.00 and set a "neutral" rating for the company in a research report on Thursday, June 11th. Morgan Stanley dropped their target price on Kroger from $73.00 to $67.00 and set an "equal weight" rating for the company in a research note on Monday, June 22nd. Barclays set a $61.00 target price on Kroger and gave the stock an "equal weight" rating in a research report on Monday, June 22nd. Finally, Weiss Ratings cut Kroger from a "hold (c+)" rating to a "hold (c)" rating in a report on Thursday, June 18th. Ten equities research analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $72.00.

Kroger Trading Up 0.6%

NYSE KR opened at $56.39 on Wednesday. The firm has a market capitalization of $34.55 billion, a price-to-earnings ratio of 33.17, a PEG ratio of 1.52 and a beta of 0.43. The company has a debt-to-equity ratio of 2.43, a quick ratio of 0.39 and a current ratio of 0.79. 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 $58.34 and its 200 day moving average price is $64.84.

Kroger (NYSE:KR - Get Free Report) last released its quarterly earnings data on Thursday, June 18th. The company reported $1.58 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.59 by ($0.01). The business had revenue of $46.12 billion during the quarter, compared to analyst estimates of $45.59 billion. Kroger had a return on equity of 44.33% and a net margin of 0.71%.Kroger's revenue was up 2.2% on a year-over-year basis. During the same period in the previous year, the company earned $1.49 EPS. Kroger has set its FY 2026 guidance at 5.100-5.30 EPS. On average, sell-side 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 2.8%. This is an increase from Kroger's previous quarterly dividend of $0.35. Kroger's payout ratio is currently 91.76%.

Kroger Company 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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