The Kroger Co. $KR Holdings Cut by Bank of America Corp DE

Key Points

• Bank of America cut its Kroger stake by 15.8% in the second quarter, selling 955,526 shares and retaining 5.09 million shares valued at approximately $282.4 million. Institutional investors collectively own 80.93% of Kroger.
• Kroger’s latest quarter exceeded earnings expectations, with EPS of $1.09 versus the $1.05 consensus and revenue of $34.62 billion. However, the company lowered its 2026 identical-sales forecast to 0.2%–0.8% as price-sensitive shoppers weigh on demand.
• Analysts maintain a generally positive outlook, with a “Moderate Buy” consensus and an average price target of $70, while Kroger increased its quarterly dividend to $0.39, implying a 2.5% annualized yield.

Bank of America Corp DE reduced its stake in The Kroger Co. (NYSE:KR - Free Report) by 15.8% in the second quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 5,085,502 shares of the company's stock after selling 955,526 shares during the period. Bank of America Corp DE owned 0.83% of Kroger worth $282,398,000 as of its most recent SEC filing.

Other institutional investors also recently made changes to their positions in the company. BlackRock Inc. bought a new stake in Kroger in the second quarter valued at $3,016,956,000. Dimensional Fund Advisors LP increased its holdings in shares of Kroger by 0.4% in the 1st quarter. Dimensional Fund Advisors LP now owns 12,296,026 shares of the company's stock worth $889,878,000 after acquiring an additional 53,625 shares during the period. Norges Bank bought a new stake in Kroger in the 4th quarter valued at about $470,561,000. Legal & General Group Plc bought a new stake in Kroger in the 2nd quarter valued at about $284,501,000. Finally, Amundi boosted its stake in Kroger by 17.9% during the 1st quarter. Amundi now owns 3,332,191 shares of the company's stock valued at $241,116,000 after purchasing an additional 506,776 shares during the period. 80.93% of the stock is owned by institutional investors.

Wall Street Analyst Weigh In

KR has been the topic of several analyst reports. Royal Bank Of Canada restated an "outperform" rating on shares of Kroger in a research note on Monday, June 1st. Wells Fargo & Company set a $58.00 price objective on Kroger in a research report on Monday, June 22nd. Roth Capital reissued a "buy" rating and issued a $73.00 price objective on shares of Kroger in a report on Monday. Deutsche Bank Aktiengesellschaft set a $68.00 target price on Kroger in a research report on Wednesday, September 9th. Finally, Citigroup reaffirmed a "neutral" rating and set a $57.00 target price (down from $61.00) on shares of Kroger in a research note on Tuesday, September 1st. Ten research analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company's stock. According to MarketBeat, Kroger currently has a consensus rating of "Moderate Buy" and an average price target of $70.00.

Kroger Stock Down 1.6%

KR opened at $61.26 on Thursday. The stock's fifty day moving average is $57.95 and its 200-day moving average is $63.49. The Kroger Co. has a one year low of $54.15 and a one year high of $76.58. The company has a market capitalization of $37.53 billion, a PE ratio of 33.29, a P/E/G ratio of 1.71 and a beta of 0.41. The company has a debt-to-equity ratio of 2.59, a quick ratio of 0.31 and a current ratio of 0.70.

Kroger (NYSE:KR - Get Free Report) last issued its quarterly earnings results on Friday, September 11th. The company reported $1.09 EPS for the quarter, topping the consensus estimate of $1.05 by $0.04. Kroger had a net margin of 0.73% and a return on equity of 49.90%. The firm had revenue of $34.62 billion for the quarter, compared to analysts' expectations of $34.64 billion. During the same period in the previous year, the business earned $1.04 earnings per share. Kroger's revenue for the quarter was up 2.0% compared to the same quarter last year. Kroger has set its FY 2026 guidance at 5.100-5.300 EPS. On average, equities analysts predict that The Kroger Co. will post 5.19 EPS for the current fiscal year.

Kroger Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, September 1st. Investors of record on Saturday, August 15th were issued a $0.39 dividend. This represents a $1.56 dividend on an annualized basis and a dividend yield of 2.5%. The ex-dividend date was Friday, August 14th. This is an increase from Kroger's previous quarterly dividend of $0.35. Kroger's payout ratio is presently 84.78%.

Key Headlines Impacting Kroger

Here are the key news stories impacting Kroger this week:

• Positive Sentiment: Kroger’s second-quarter operating profit increased to $971 million from $863 million, while net earnings rose to $641 million from $609 million. Margin improvement and cost discipline helped offset sluggish sales. Kroger trims 2026 sales outlook despite profit gains
• Positive Sentiment: The company is emphasizing Costco-like private-label strategies to offer lower prices and improve customer value, which could support customer retention and margins over time. Kroger borrows a key strategy from Costco to lower prices
• Positive Sentiment: Automation investments, including inventory robots, and Harris Teeter’s planned $253 million store investment and three new Charlotte-area locations may improve efficiency and support longer-term growth. Harris Teeter investment announcement
• Neutral Sentiment: Kroger launched a limited-time Private Selection pumpkin collection and other new food products for the fall season. The products could provide incremental seasonal sales, but the financial impact is likely limited. Kroger Pumpkin Harvest Collection
• Negative Sentiment: Kroger cut its 2026 identical-sales forecast excluding fuel to 0.2%–0.8% from 1%–2%. Second-quarter identical sales rose only 0.2%, below the 0.9% analyst estimate, reflecting pressure on middle- and lower-income shoppers. Kroger under pressure as shoppers become more price-sensitive
• Negative Sentiment: A cyclosporiasis outbreak caused shoppers to avoid Kroger’s produce departments and reportedly cost more than $100 million in lost sales, creating a significant near-term headwind. Kroger says cyclosporiasis outbreak cost over $100 million in lost sales
• Negative Sentiment: Pricing discrepancies between shelf labels and checkout totals, along with reports of supplier disputes, could damage customer trust and increase execution risk. Kroger also confirmed it has stopped selling Red Bull nationwide, potentially reducing product choice and supplier relationships. Kroger appears ready to lose suppliers over price

Kroger Company Profile

The Kroger Co NYSE: KR is one of the largest grocery retailers in the United States. Founded in Cincinnati in 1883 by Bernard Kroger, the company operates supermarkets, multi-department stores, pharmacies, convenience stores and fuel centers across the country.

Kroger sells a broad range of fresh foods, packaged groceries, household products, health and beauty items, prepared foods and general merchandise. Its private-label offerings include Simple Truth, Private Selection and Kroger brands.

Want to see what other hedge funds are holding KR? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for The Kroger Co. (NYSE:KR - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.