River Road Asset Management LLC Acquires 491,541 Shares of The Kroger Co. $KR

Key Points

• River Road Asset Management increased its Kroger stake by 38.7% in the fourth quarter, buying 491,541 additional shares and bringing its holding to 1,761,155 shares valued at about $110 million.
• Kroger’s latest quarterly results were mixed: revenue beat expectations at $46.12 billion, but EPS of $1.58 missed estimates by a penny. Management also reiterated its full-year guidance of $5.10-$5.30 EPS.
• Investor sentiment remains cautious but constructive, with analysts holding a Moderate Buy consensus and an average price target of $74.67, while concerns persist about margin pressure and rising operating costs.

River Road Asset Management LLC lifted its stake in shares of The Kroger Co. (NYSE:KR - Free Report) by 38.7% in the 4th quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm owned 1,761,155 shares of the company's stock after buying an additional 491,541 shares during the quarter. Kroger comprises approximately 1.2% of River Road Asset Management LLC's investment portfolio, making the stock its 27th largest holding. River Road Asset Management LLC owned about 0.28% of Kroger worth $110,037,000 as of its most recent SEC filing.

Several other hedge funds also recently modified their holdings of the stock. Ares Financial Consulting LLC bought a new position in Kroger during the fourth quarter worth $25,000. MV Capital Management Inc. bought a new stake in Kroger in the fourth quarter valued at $26,000. Princeton Global Asset Management LLC raised its holdings in shares of Kroger by 268.1% during the fourth quarter. Princeton Global Asset Management LLC now owns 416 shares of the company's stock valued at $26,000 after purchasing an additional 303 shares during the period. Avalon Trust Co acquired a new position in shares of Kroger during the third quarter valued at about $29,000. Finally, Lloyd Advisory Services LLC. bought a new position in shares of Kroger during the 4th quarter worth about $28,000. Institutional investors own 80.93% of the company's stock.

Kroger Price Performance

KR stock opened at $56.57 on Friday. The company has a market capitalization of $34.65 billion, a P/E ratio of 36.97, a price-to-earnings-growth ratio of 1.74 and a beta of 0.42. The company has a debt-to-equity ratio of 2.66, a quick ratio of 0.42 and a current ratio of 0.80. The Kroger Co. has a 52-week low of $56.32 and a 52-week high of $76.58. The business has a 50-day simple moving average of $65.80 and a two-hundred day simple moving average of $66.40.

Kroger (NYSE:KR - Get Free Report) last issued its quarterly earnings data on Thursday, June 18th. The company reported $1.58 EPS for the quarter, missing the consensus estimate of $1.59 by ($0.01). The company had revenue of $46.12 billion during the quarter, compared to analysts' expectations of $45.59 billion. Kroger had a return on equity of 41.08% and a net margin of 0.69%.The business's revenue for the quarter was up 2.2% compared to the same quarter last year. During the same period last year, the company earned $1.49 earnings per share. Kroger has set its FY 2026 guidance at 5.100-5.30 EPS. Research analysts expect that The Kroger Co. will post 5.25 EPS for the current fiscal year.

Trending Headlines about Kroger

Here are the key news stories impacting Kroger this week:

• Positive Sentiment: Revenue beat estimates and identical sales excluding fuel rose 1.0%, showing Kroger still has steady demand for groceries and essentials. Reuters: Kroger beats quarterly sales estimates
• Positive Sentiment: eCommerce grew 19% and became profitable, while the media segment also turned profitable, which supports longer-term growth. Yahoo Finance: Kroger Q1 2026 Earnings Call Highlights
• Positive Sentiment: Kroger reaffirmed full-year guidance, suggesting management still expects the business to stay on track despite a tougher consumer backdrop. Yahoo Finance: Kroger Delivers Revenue Beat While Reaffirming Full-Year Outlook
• Neutral Sentiment: New CEO Greg Foran emphasized store improvements and broader price investments, which could help traffic but require execution and time to show up in results. WSJ: Kroger’s New CEO Wants Better Stores and More of Them
• Negative Sentiment: EPS missed by a penny, and investors appear to be punishing the stock for even a small earnings miss in a low-growth retail environment. Zacks: Kroger Q1 Earnings Miss Estimates
• Negative Sentiment: Margin pressure and rising operating costs are the main concern, especially as Kroger uses price cuts to defend market share. MSN: Kroger seeing costs outrun sales growth

Analyst Upgrades and Downgrades

A number of research firms recently weighed in on KR. BMO Capital Markets reaffirmed a "market perform" rating and set a $70.00 price target on shares of Kroger in a research note on Thursday, March 5th. Wall Street Zen raised Kroger from a "hold" rating to a "buy" rating in a research note on Saturday, April 4th. Royal Bank Of Canada restated an "outperform" rating on shares of Kroger in a report on Monday, June 1st. Erste Group Bank lowered Kroger from a "buy" rating to a "hold" rating in a research report on Monday, April 27th. Finally, Weiss Ratings reiterated a "hold (c)" rating on shares of Kroger in a report on Friday, March 27th. Nine analysts have rated the stock with a Buy rating and eight have assigned 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 target price of $74.67.

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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