Swedbank AB Acquires 1,169,373 Shares of The Kroger Co. $KR

Key Points

• Swedbank AB sharply increased its Kroger stake, buying 1,169,373 additional shares in the first quarter and lifting its holdings to 1,576,007 shares worth about $114 million.
• Kroger reported mixed quarterly results: EPS of $1.58 slightly missed estimates, while revenue of $46.12 billion came in above expectations and rose 2.2% year over year.
• The company boosted its quarterly dividend to $0.39 per share from $0.35, signaling confidence in cash flow even as analysts remain mostly neutral-to-moderately bullish on the stock.

Swedbank AB grew its holdings in shares of The Kroger Co. (NYSE:KR - Free Report) by 287.6% during the 1st quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 1,576,007 shares of the company's stock after acquiring an additional 1,169,373 shares during the quarter. Swedbank AB owned 0.26% of Kroger worth $114,040,000 at the end of the most recent quarter.

Other hedge funds have also recently made changes to their positions in the company. Ares Financial Consulting LLC bought a new position in shares of Kroger during the 4th quarter valued at $25,000. Princeton Global Asset Management LLC raised its position in Kroger by 268.1% in the 4th quarter. Princeton Global Asset Management LLC now owns 416 shares of the company's stock worth $26,000 after purchasing an additional 303 shares during the period. MV Capital Management Inc. bought a new stake in Kroger in the fourth quarter worth $26,000. Lloyd Advisory Services LLC. bought a new stake in Kroger in the fourth quarter worth $28,000. Finally, JPL Wealth Management LLC purchased a new stake in Kroger during the third quarter valued at about $31,000. 80.93% of the stock is currently owned by institutional investors.

Kroger Stock Performance

Kroger stock opened at $58.52 on Wednesday. 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 cap of $35.86 billion, a P/E ratio of 34.43, a P/E/G ratio of 1.56 and a beta of 0.44. The Kroger Co. has a 1-year low of $54.15 and a 1-year high of $76.58. The firm has a 50-day moving average of $62.93 and a 200-day moving average of $65.81.

Kroger (NYSE:KR - Get Free Report) last announced its quarterly earnings results on Thursday, June 18th. The company reported $1.58 earnings per share (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 revenue for the quarter was up 2.2% on a year-over-year basis. During the same quarter in the prior year, the firm earned $1.49 EPS. Kroger has set its FY 2026 guidance at 5.100-5.30 EPS. Sell-side analysts expect that The Kroger Co. will post 5.21 EPS for the current year.

Kroger Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 1st. Shareholders of record on Saturday, August 15th will be given a dividend of $0.39 per share. This represents a $1.56 dividend on an annualized basis and a yield of 2.7%. The ex-dividend date of this dividend is Friday, August 14th. This is an increase from Kroger's previous quarterly dividend of $0.35. Kroger's payout ratio is presently 82.35%.

Key Headlines Impacting Kroger

Here are the key news stories impacting Kroger this week:

• Positive Sentiment: Analysts are viewing Kroger’s planned Giant Eagle purchase as a smart, potentially value-creating deal that could improve Kroger’s competitive position and market reach. Kroger’s planned $1.7B Giant Eagle acquisition is ‘a master stroke,’ analyst says
• Positive Sentiment: Coverage suggesting Kroger may be undervalued after its recent pullback is helping sentiment, especially as investors reassess the Giant Eagle deal, buybacks, and the higher dividend. Is Kroger (KR) Undervalued On Its Giant Eagle Deal And Recent Pullback?
• Positive Sentiment: Kroger raised its dividend, reinforcing its shareholder-return story and signaling management confidence in cash flow and payout sustainability. 3 Stocks With Solid Yields and Sustainabale Payouts Boost Dividends Once Again (KR)
• Neutral Sentiment: Kroger appointed Emilee De Martino as chief people officer, a routine leadership move that may support longer-term execution but is unlikely to move the stock on its own. Kroger (KR) Names McDonald's Veteran Emilee De Martino Chief People Officer
• Neutral Sentiment: Reports that Kroger may pursue divestitures in Columbus as part of the Giant Eagle transaction suggest the deal is still being worked through, but this is mainly a procedural update. Kroger eyes Columbus for Giant Eagle divestitures: reports
• Negative Sentiment: Recent articles noting Kroger store closures and grocery recall headlines may create some near-term noise, but they appear less important than the acquisition and dividend catalysts. Kroger and 8 Other Major Stores That Are Closing in July

Wall Street Analyst Weigh In

Several research analysts have recently commented on KR shares. Wells Fargo & Company set a $58.00 price objective on Kroger in a report on Monday, June 22nd. JPMorgan Chase & Co. dropped their target price on Kroger from $72.00 to $70.00 and set a "neutral" rating for the company in a report on Thursday, June 11th. Weiss Ratings lowered Kroger from a "hold (c+)" rating to a "hold (c)" rating in a research report on Thursday, June 18th. Morgan Stanley decreased their price target on Kroger from $73.00 to $67.00 and set an "equal weight" rating on the stock in a research note on Monday, June 22nd. Finally, UBS Group set a $63.00 price objective on Kroger and gave the company a "neutral" rating in a research report on Monday, June 22nd. Ten analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company's stock. According to MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $72.00.

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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