The Kroger Co. $KR Stake Reduced by Employees Retirement System of Texas

Key Points

• Employees Retirement System of Texas reduced its Kroger stake by 36% in the fourth quarter, leaving it with 42,442 shares worth about $2.65 million. Institutional investors still hold a large majority of Kroger’s shares, at roughly 80.9%.
• Kroger is pushing price cuts on thousands of items to stay competitive with Walmart and Costco, even as analysts warn grocery margins could remain pressured. The stock fell in the prior session amid concerns about a tougher margin environment.
• Despite mixed sentiment, Kroger recently beat earnings expectations with quarterly EPS of $1.28 versus $1.20 expected and reaffirmed FY2026 guidance of $5.10 to $5.30 per share. The company also declared a quarterly dividend of $0.35 per share, yielding about 2.2%.

Employees Retirement System of Texas lessened its position in The Kroger Co. (NYSE:KR - Free Report) by 36.0% during the fourth quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm owned 42,442 shares of the company's stock after selling 23,856 shares during the period. Employees Retirement System of Texas' holdings in Kroger were worth $2,652,000 at the end of the most recent reporting period.

Other institutional investors also recently added to or reduced their stakes in the company. Ares Financial Consulting LLC acquired a new position in shares of Kroger during the fourth quarter valued at $25,000. Princeton Global Asset Management LLC raised its holdings in Kroger by 268.1% during the fourth quarter. Princeton Global Asset Management LLC now owns 416 shares of the company's stock worth $26,000 after purchasing an additional 303 shares in the last quarter. Avalon Trust Co acquired a new stake in Kroger in the third quarter worth approximately $29,000. Lloyd Advisory Services LLC. bought a new position in Kroger during the 4th quarter valued at $28,000. Finally, JPL Wealth Management LLC acquired a new position in shares of Kroger during the 3rd quarter valued at $31,000. Institutional investors and hedge funds own 80.93% of the company's stock.

Key Headlines Impacting Kroger

Here are the key news stories impacting Kroger this week:

• Positive Sentiment: Kroger is moving ahead with a plan to cut prices on thousands of items, which could help protect traffic and market share as it competes more aggressively with Walmart and Costco. Kroger plans to cut prices on thousands of items to boost competitiveness, Bloomberg report says
• Positive Sentiment: Industry commentary suggesting grocery prices may rise further could support revenue, since higher shelf prices can lift sales dollars even if unit volume growth is mixed. Americans Are About to Pay Even More at the Grocery Store
• Neutral Sentiment: Kroger announced the retirement of Executive Vice President and Chief Associate Experience Officer Tim Massa, adding to a recent string of senior departures under new CEO Greg Foran; investors may see this as leadership turnover during a strategic transition. Kroger announces retirement of Tim Massa, Executive Vice President and Chief Associate Experience Officer
• Neutral Sentiment: Separately, Kroger’s broader investment case still leans on its push to become a more competitive value grocer, but that strategy may take time to show up in earnings. We Want to Be America’s Best Grocer: Kroger’s Aggressive Plan to Beat Walmart and Costco
• Negative Sentiment: Shares fell sharply in the prior session as investors worried about a tougher margin backdrop from higher grocery price competition and a weak read-through from Walmart’s profit outlook. Kroger (KR) Stock Drops Despite Market Gains: Important Facts to Note
• Negative Sentiment: Kroger also faced a product recall involving croutons in 17 states over possible salmonella contamination, which could weigh on sentiment around food safety and execution. Kroger croutons recalled in 17 states over possible salmonella contamination

Kroger Stock Up 0.4%

NYSE:KR opened at $64.81 on Thursday. The business's fifty day moving average price is $68.99 and its 200 day moving average price is $66.79. The firm has a market capitalization of $39.71 billion, a price-to-earnings ratio of 42.36, a PEG ratio of 1.72 and a beta of 0.46. The company has a current ratio of 0.80, a quick ratio of 0.42 and a debt-to-equity ratio of 2.66. The Kroger Co. has a 1-year low of $58.60 and a 1-year high of $76.58.

Kroger (NYSE:KR - Get Free Report) last released its earnings results on Thursday, March 5th. The company reported $1.28 earnings per share for the quarter, beating the consensus estimate of $1.20 by $0.08. The company had revenue of $34.73 billion for the quarter, compared to analysts' expectations of $35.10 billion. Kroger had a return on equity of 41.08% and a net margin of 0.69%.The business's revenue for the quarter was up 1.2% on a year-over-year basis. During the same quarter in the previous year, the business posted $1.14 EPS. Kroger has set its FY 2026 guidance at 5.100-5.300 EPS. On average, sell-side analysts forecast that The Kroger Co. will post 5.24 earnings per share for the current fiscal year.

Kroger Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, June 1st. Stockholders of record on Friday, May 15th will be issued a dividend of $0.35 per share. This represents a $1.40 annualized dividend and a dividend yield of 2.2%. The ex-dividend date is Friday, May 15th. Kroger's payout ratio is currently 91.50%.

Wall Street Analysts Forecast Growth

A number of analysts recently weighed in on KR shares. Citigroup raised their target price on shares of Kroger from $68.00 to $71.00 and gave the stock a "neutral" rating in a report on Monday, March 9th. Barclays restated a "positive" rating on shares of Kroger in a report on Monday, February 9th. BMO Capital Markets reaffirmed a "market perform" rating and set a $70.00 target price on shares of Kroger in a report on Thursday, March 5th. Wolfe Research reiterated an "outperform" rating and issued a $75.00 price target on shares of Kroger in a research report on Thursday, March 5th. Finally, Weiss Ratings reissued a "hold (c)" rating on shares of Kroger in a research note on Friday, March 27th. Eight analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $74.87.

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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