The Kroger Co. $KR Holdings Lifted by Fifth Third Bancorp

Key Points

• Fifth Third Bancorp increased its Kroger stake by 124.6% in the first quarter, buying 83,563 additional shares and bringing its total holdings to 150,602 shares valued at about $10.9 million.
• Kroger recently raised its quarterly dividend to $0.39 per share from $0.35, putting the annualized payout at $1.56 and the yield at roughly 2.7%.
• The company’s latest quarter showed slight earnings pressure but solid revenue growth: EPS was $1.58 versus $1.59 expected, while revenue rose 2.2% year over year to $46.12 billion.

Fifth Third Bancorp increased its holdings in The Kroger Co. (NYSE:KR - Free Report) by 124.6% in the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 150,602 shares of the company's stock after buying an additional 83,563 shares during the quarter. Fifth Third Bancorp's holdings in Kroger were worth $10,898,000 at the end of the most recent reporting period.

Other large investors have also recently bought and sold shares of the company. Vanguard Group Inc. lifted its holdings in shares of Kroger by 1.1% during the fourth quarter. Vanguard Group Inc. now owns 77,169,425 shares of the company's stock valued at $4,821,546,000 after purchasing an additional 868,529 shares during the last quarter. State Street Corp boosted its holdings in shares of Kroger by 1.2% during the third quarter. State Street Corp now owns 31,948,112 shares of the company's stock worth $2,153,622,000 after purchasing an additional 386,503 shares during the period. GQG Partners LLC grew its holdings in shares of Kroger by 11.3% during the 4th quarter. GQG Partners LLC now owns 13,398,072 shares of the company's stock valued at $837,113,000 after acquiring an additional 1,360,946 shares in the last quarter. Dimensional Fund Advisors LP grew its stake in Kroger by 1.0% in the fourth quarter. Dimensional Fund Advisors LP now owns 12,242,401 shares of the company's stock valued at $764,932,000 after purchasing an additional 122,606 shares in the last quarter. Finally, Norges Bank bought a new stake in shares of Kroger in the 4th quarter valued at approximately $470,561,000. Institutional investors and hedge funds own 80.93% of the company's stock.

Kroger News Summary

Here are the key news stories impacting Kroger this week:

• Positive Sentiment: Kroger is expanding its premium offering by launching in-store wine shops, which could help lift sales mix and attract higher-spending customers. Kroger launches store wine shops to tap into consumer demand for premium options
• Positive Sentiment: Analysts and industry coverage have pointed to Kroger’s focus on fresh food and merchandising improvements as a potential competitive advantage that could support long-term customer loyalty and growth. Is Fresh Food Becoming Kroger's Biggest Competitive Advantage?
• Positive Sentiment: Reports suggest the Kroger-Giant Eagle deal may win approval with only limited store divestitures, easing concerns that antitrust review could derail the transaction. The Kroger-Giant Eagle deal is seen being approved after limited store divestitures
• Neutral Sentiment: Kroger is reportedly scrapping plans to build dozens of Harris Teeter stores across Florida, though some reports say a Jacksonville location may still move forward. The pullback lowers expansion expectations but also reduces near-term capital spending. Kroger wipes out plan for 80 stores in Florida
• Neutral Sentiment: Industry chatter continues around the regulatory path for the Kroger-Giant Eagle merger, with antitrust experts discussing possible hurdles and remedies. Will the Kroger-Giant Eagle deal face regulatory challenges?
• Neutral Sentiment: Broader consumer trend stories about shoppers spending more time on meal planning and grocery shopping do not directly change Kroger’s fundamentals, but they reinforce demand for convenience-focused grocery and prepared-food offerings. US Millennials and Gen Z Are Losing Hours Each Week to Food Friction

Wall Street Analysts Forecast Growth

Several equities analysts have commented on the stock. Morgan Stanley lowered their target price on shares of Kroger from $73.00 to $67.00 and set an "equal weight" rating on the stock in a research report on Monday, June 22nd. Royal Bank Of Canada reaffirmed an "outperform" rating on shares of Kroger in a research report on Monday, June 1st. JPMorgan Chase & Co. cut their price target on Kroger from $72.00 to $70.00 and set a "neutral" rating for the company in a report on Thursday, June 11th. UBS Group set a $63.00 price objective on shares of Kroger and gave the company a "neutral" rating in a research note on Monday, June 22nd. Finally, Citigroup cut their target price on Kroger from $71.00 to $61.00 and set a "neutral" rating for the company in a research report on Tuesday, June 23rd. Ten equities research analysts have rated the stock with a Buy rating and nine have given a Hold rating to the company's stock. Based on data from MarketBeat, Kroger currently has an average rating of "Moderate Buy" and a consensus target price of $72.00.

Kroger Stock Down 1.1%

NYSE:KR opened at $58.66 on Wednesday. The stock's fifty day moving average price is $62.18 and its two-hundred day moving average price is $65.70. The company has a market cap of $35.94 billion, a price-to-earnings ratio of 34.51, a P/E/G ratio of 1.59 and a beta of 0.44. The Kroger Co. has a 52-week low of $54.15 and a 52-week high of $76.58. The company has a debt-to-equity ratio of 2.43, a quick ratio of 0.39 and a current ratio of 0.79.

Kroger (NYSE:KR - Get Free Report) last announced its quarterly earnings data 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 during the quarter, compared to the consensus estimate of $45.59 billion. Kroger had a net margin of 0.71% and a return on equity of 44.33%. Kroger's revenue was up 2.2% compared to the same quarter last year. During the same period in the previous year, the business posted $1.49 earnings per share. Kroger has set its FY 2026 guidance at 5.100-5.30 EPS. On average, analysts anticipate that The Kroger Co. will post 5.21 EPS for the current year.

Kroger Increases Dividend

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

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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