Sumitomo Mitsui Trust Group Inc. Reduces Stock Holdings in The Kroger Co. $KR

Key Points

• Sumitomo Mitsui Trust Group cut its Kroger stake by 6.6% in the first quarter, selling 102,069 shares and leaving it with 1,446,910 shares valued at about $104.7 million.
• Institutional ownership of Kroger remains high, with 80.93% of shares held by institutions. Other funds both added to and initiated positions in the stock during recent quarters.
• Kroger reported quarterly earnings of $1.58 per share, just below expectations, while revenue came in above estimates at $46.12 billion. The company also raised its quarterly dividend to $0.39 per share from $0.35.

Sumitomo Mitsui Trust Group Inc. trimmed its position in shares of The Kroger Co. (NYSE:KR - Free Report) by 6.6% in the 1st quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 1,446,910 shares of the company's stock after selling 102,069 shares during the period. Sumitomo Mitsui Trust Group Inc. owned 0.24% of Kroger worth $104,698,000 as of its most recent filing with the Securities and Exchange Commission.

Several other hedge funds have also recently made changes to their positions in KR. Brighton Jones LLC raised its stake in Kroger by 27.3% in the 4th quarter. Brighton Jones LLC now owns 15,733 shares of the company's stock valued at $962,000 after acquiring an additional 3,373 shares during the period. Woodline Partners LP boosted its position in Kroger by 40.7% during the first quarter. Woodline Partners LP now owns 56,243 shares of the company's stock worth $3,807,000 after purchasing an additional 16,270 shares during the period. Sivia Capital Partners LLC purchased a new position in shares of Kroger in the second quarter worth about $201,000. NewEdge Advisors LLC lifted its stake 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 buying an additional 10,051 shares in the last quarter. Finally, Nebula Research & Development LLC bought a new position in Kroger in the 2nd quarter worth approximately $1,840,000. 80.93% of the stock is currently owned by institutional investors.

Analyst Upgrades and Downgrades

A number of equities research analysts have issued reports on the stock. Wells Fargo & Company set a $58.00 target price on shares of Kroger in a report on Monday, June 22nd. Telsey Advisory Group set a $78.00 price target on Kroger and gave the company an "outperform" rating in a research report on Monday, June 22nd. Erste Group Bank cut Kroger from a "buy" rating to a "hold" rating in a report on Monday, April 27th. Royal Bank Of Canada restated an "outperform" rating on shares of Kroger in a research note on Monday, June 1st. Finally, Evercore reiterated an "outperform" rating and set a $78.00 price target on shares of Kroger in a research report on Tuesday. Ten research analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $72.00.

Kroger Price Performance

NYSE:KR traded up $0.72 during trading hours on Friday, hitting $60.58. The stock had a trading volume of 10,399,209 shares, compared to its average volume of 8,965,760. The company has a 50 day simple moving average of $62.52 and a two-hundred day simple moving average of $65.73. The firm has a market capitalization of $37.11 billion, a price-to-earnings ratio of 35.64, a P/E/G ratio of 1.61 and a beta of 0.44. 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 one year low of $54.15 and a one year high of $76.58.

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

Kroger Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, September 1st. Shareholders of record on Saturday, August 15th will be paid a $0.39 dividend. The ex-dividend date is Friday, August 14th. This represents a $1.56 dividend on an annualized basis and a yield of 2.6%. This is an increase from Kroger's previous quarterly dividend of $0.35. Kroger's dividend payout ratio is currently 82.35%.

Key Kroger News

Here are the key news stories impacting Kroger this week:

• Positive Sentiment: Traders bought an unusually large number of Kroger call options, suggesting some investors are betting on more upside in the stock. Unusual options trading on Kroger
• Positive Sentiment: Kroger is moving forward with its $1.65 billion Giant Eagle deal, a major strategic move that could expand its market presence and boost long-term scale. Kroger progresses on USD 1.65 billion deal to acquire Giant Eagle
• Positive Sentiment: Kroger is also investing in store upgrades, including expanding wine offerings at 147 in-store shops, which may support sales trends and customer traffic. Kroger to upgrade wine selection at 147 in-store shops
• Neutral Sentiment: Reports suggest Kroger may sell some Giant Eagle stores, especially in Columbus, as part of the broader deal. That could help with antitrust or integration issues, but it also signals potential divestitures. Kroger likely to sell some Giant Eagle stores in Columbus
• Negative Sentiment: Kroger reportedly walked back its cage-free egg pledge, which could raise questions about customer trust and ESG commitments. Kroger walks back its cage-free egg pledge

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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