The Kroger Co. $KR Shares Sold by Hennessy Advisors Inc.

Key Points

• Hennessy Advisors cut its Kroger position by 74.5% in the second quarter, selling 119,162 shares and retaining 40,700 shares valued at approximately $2.26 million. Institutional investors and hedge funds collectively own 80.93% of Kroger.
• Kroger reported quarterly revenue of $46.12 billion, up 2.2% year over year and above estimates, while EPS of $1.58 narrowly missed forecasts. Management maintained fiscal 2026 EPS guidance of $5.10 to $5.30.
• Kroger raised its quarterly dividend from $0.35 to $0.39 per share, implying a 2.7% yield, while analysts maintain a “Moderate Buy” consensus and an average price target of $72.

Hennessy Advisors Inc. reduced its position in shares of The Kroger Co. (NYSE:KR - Free Report) by 74.5% in the 2nd quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 40,700 shares of the company's stock after selling 119,162 shares during the period. Hennessy Advisors Inc.'s holdings in Kroger were worth $2,260,000 as of its most recent SEC filing.

Other hedge funds have also modified their holdings of the company. SGL Investment Advisors Inc. purchased a new stake in shares of Kroger in the second quarter valued at about $2,764,000. Allstate Corp lifted its holdings in Kroger by 108.5% in the 4th quarter. Allstate Corp now owns 47,991 shares of the company's stock valued at $2,998,000 after purchasing an additional 24,976 shares in the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. acquired a new position in shares of Kroger in the second quarter valued at approximately $76,633,000. Conning Inc. lifted its stake in shares of Kroger by 10,178.7% during the fourth quarter. Conning Inc. now owns 507,459 shares of the company's stock valued at $31,706,000 after buying an additional 502,522 shares during the period. Finally, North Dakota State Investment Board purchased a new position in shares of Kroger during the fourth quarter valued at approximately $1,299,000. 80.93% of the stock is owned by institutional investors and hedge funds.

Trending Headlines about Kroger

Here are the key news stories impacting Kroger this week:

• Positive Sentiment: Kroger announced its 2026 Wellness Tour, with September in-store and community events intended to increase customer engagement and reinforce the company’s health-and-wellness offerings. The initiative is strategically positive, though its near-term financial impact is likely limited. Kroger Wellness Tour announcement
• Positive Sentiment: Unusually heavy call-option activity, with purchases more than double the typical daily volume, suggests increased bullish speculative interest. However, options activity does not guarantee sustained buying in the stock.
• Neutral Sentiment: Murray’s Cheese, a Kroger brand, expanded its premium cave-aged collection to select Harris Teeter stores in Charlotte. The launch supports product differentiation and potentially higher-margin sales but is unlikely to materially affect companywide results. Murray’s Cheese Harris Teeter launch
• Neutral Sentiment: Kroger’s recent earnings showed revenue growth and earnings ahead of the prior-year period, but earnings per share narrowly missed estimates. Management’s fiscal-year EPS guidance remains a key factor for investors assessing whether the current valuation is justified.
• Negative Sentiment: Industry data indicated Kroger’s foot traffic declined in July as the broader supermarket sector also struggled. Persistent traffic weakness could pressure comparable sales and raise concerns about consumer demand. Kroger July foot traffic report
• Negative Sentiment: Kroger agreed to pay $17 million to settle a class-action lawsuit alleging prescription-drug pricing practices. The cash cost is manageable relative to Kroger’s size, but the settlement adds legal expense and reputational risk. Kroger prescription pricing settlement
• Negative Sentiment: Sony Music sued Kroger over alleged unauthorized use of songs in social-media advertising, creating another potential legal liability. The financial impact is uncertain, but the lawsuit adds to investor concerns following the pharmacy settlement. Sony Music lawsuit against Kroger

Kroger Stock Up 0.0%

KR opened at $57.73 on Monday. 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 12 month low of $54.15 and a 12 month high of $76.58. The stock's 50 day moving average price is $57.63 and its 200 day moving average price is $64.41. The stock has a market cap of $35.37 billion, a P/E ratio of 33.96, a P/E/G ratio of 1.55 and a beta of 0.43.

Kroger (NYSE:KR - Get Free Report) last issued its quarterly earnings results on Thursday, June 18th. The company reported $1.58 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 analyst estimates of $45.59 billion. Kroger had a net margin of 0.71% and a return on equity of 44.33%. Kroger's revenue for the quarter was up 2.2% on a year-over-year basis. During the same period last year, the business posted $1.49 earnings per share. Kroger has set its FY 2026 guidance at 5.100-5.30 EPS. As a group, research analysts predict that The Kroger Co. will post 5.21 earnings per share for the current 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 dividend of $0.39 per share. This is a boost from Kroger's previous quarterly dividend of $0.35. The ex-dividend date of this dividend is Friday, August 14th. This represents a $1.56 annualized dividend and a yield of 2.7%. Kroger's dividend payout ratio (DPR) is presently 91.76%.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently commented on KR shares. Evercore reaffirmed an "outperform" rating and issued a $78.00 price objective on shares of Kroger in a research report on Tuesday, July 7th. HC Wainwright reiterated a "buy" rating on shares of Kroger in a report on Thursday, July 2nd. Morgan Stanley cut their target price on Kroger from $73.00 to $67.00 and set an "equal weight" rating on the stock in a research report on Monday, June 22nd. Wall Street Zen cut shares of Kroger from a "buy" rating to a "hold" rating in a research report on Saturday, June 20th. Finally, UBS Group set a $63.00 price objective on shares of Kroger and gave the stock a "neutral" rating in a research note on Monday, June 22nd. Ten analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the stock. Based on data from MarketBeat, Kroger presently has an average rating of "Moderate Buy" and a consensus 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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