The Kroger Co. $KR Stock: IFP Advisors Inc Raises Holdings

Key Points

• IFP Advisors increased its Kroger holdings by 192.4% in the third quarter, reaching 29,525 shares valued at approximately $1.73 million. Institutional investors collectively own 80.93% of Kroger.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and an average price target of $70.35, compared with the stock’s reported opening price of $64.16.
• Kroger exceeded quarterly earnings expectations with $1.09 in EPS, while revenue reached $34.62 billion. The company also announced a quarterly dividend of $0.39 per share, representing a 2.4% annualized yield.

IFP Advisors Inc grew its holdings in shares of The Kroger Co. (NYSE:KR - Free Report) by 192.4% during the third quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm owned 29,525 shares of the company's stock after purchasing an additional 19,427 shares during the quarter. IFP Advisors Inc's holdings in Kroger were worth $1,731,000 at the end of the most recent quarter.

Several other hedge funds have also made changes to their positions in KR. BlackRock Inc. acquired a new position in Kroger in the second quarter valued at $3,016,956,000. Dimensional Fund Advisors LP lifted its position in Kroger by 0.4% during the first quarter. Dimensional Fund Advisors LP now owns 12,296,026 shares of the company's stock worth $889,878,000 after buying an additional 53,625 shares during the period. Bank of America Corp DE lifted its position in Kroger by 17.0% during the first quarter. Bank of America Corp DE now owns 6,041,028 shares of the company's stock worth $437,129,000 after buying an additional 876,168 shares during the period. Legal & General Group Plc acquired a new stake in Kroger in the 2nd quarter worth about $284,501,000. Finally, Amundi boosted its stake in Kroger by 17.9% in the 1st quarter. Amundi now owns 3,332,191 shares of the company's stock worth $241,116,000 after buying an additional 506,776 shares during the last quarter. Institutional investors and hedge funds own 80.93% of the company's stock.

Analyst Ratings Changes

Several analysts have commented on the company. Deutsche Bank Aktiengesellschaft restated a "buy" rating and issued a $70.00 price target on shares of Kroger in a report on Wednesday. HC Wainwright reiterated a "buy" rating on shares of Kroger in a report on Thursday, July 2nd. Evercore set a $70.00 target price on shares of Kroger in a research report on Monday, September 14th. BNP Paribas Exane upgraded shares of Kroger from a "neutral" rating to an "outperform" rating and set a $72.00 target price for the company in a report on Wednesday, October 7th. Finally, Citigroup restated a "neutral" rating and issued a $57.00 target price (down from $61.00) on shares of Kroger in a report on Tuesday, September 1st. Twelve research analysts have rated the stock with a Buy rating and nine have given a Hold rating to the stock. According to MarketBeat, Kroger presently has a consensus rating of "Moderate Buy" and a consensus target price of $70.35.

Kroger Price Performance

Shares of Kroger stock opened at $64.16 on Thursday. The Kroger Co. has a twelve month low of $54.15 and a twelve month high of $76.58. The stock has a market capitalization of $37.89 billion, a P/E ratio of 34.87, a PEG ratio of 1.73 and a beta of 0.36. The company has a current ratio of 0.70, a quick ratio of 0.31 and a debt-to-equity ratio of 2.59. The business's fifty day moving average price is $59.29 and its 200 day moving average price is $61.43.

Kroger (NYSE:KR - Get Free Report) last announced 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. The company had revenue of $34.62 billion during the quarter, compared to analyst estimates of $34.64 billion. Kroger had a return on equity of 49.90% and a net margin of 0.73%. The firm's revenue was up 2.0% on a year-over-year basis. During the same period in the prior year, the firm posted $1.04 earnings per share. Kroger has set its FY 2026 guidance at 5.100-5.300 EPS. As a group, research analysts anticipate that The Kroger Co. will post 5.19 earnings per share for the current year.

Kroger Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, December 1st. Investors of record on Monday, November 16th will be given a dividend of $0.39 per share. This represents a $1.56 dividend on an annualized basis and a yield of 2.4%. The ex-dividend date of this dividend is Monday, November 16th. Kroger's dividend payout ratio is 84.78%.

Insider Transactions at Kroger

In related news, EVP Mary Adcock sold 72,901 shares of the stock in a transaction that occurred on Friday, September 18th. The shares were sold at an average price of $60.70, for a total transaction of $4,425,090.70. Following the completion of the sale, the executive vice president owned 175,233 shares of the company's stock, valued at approximately $10,636,643.10. This represents a 29.38% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Company insiders own 0.41% of the company's stock.

Kroger News Summary

Here are the key news stories impacting Kroger this week:

• Positive Sentiment: Kroger plans to invest approximately $5 billion by 2029 to lower prices, strengthen its value proposition and win market share. Management is targeting roughly 3% annual comparable sales growth, 3%-6% adjusted EBITDA growth and 7%-11% adjusted EPS growth through 2029. Kroger long-term financial targets
• Positive Sentiment: The company intends to open about 110 new stores and refresh existing locations, with updated formats allocating more space to fresh food and e-commerce. The expansion could support revenue growth and improve Kroger’s competitiveness against Walmart, Amazon and other grocers. Kroger store formats and expansion
• Positive Sentiment: Management is simplifying operations and focusing more closely on its core grocery business under CEO Greg Foran. Investors viewed the strategy as a possible way to improve customer traffic and produce earnings growth despite intense industry competition. Kroger grocery strategy
• Neutral Sentiment: Kroger is reportedly planning to cut thousands of corporate positions as it expands artificial-intelligence tools and streamlines its business. The reductions could lower costs over time, but restructuring expenses and potential execution or employee-relations issues may weigh on near-term results. Kroger job cuts and AI plans
• Negative Sentiment: Albertsons is seeking approximately $8 billion from Kroger in litigation over their failed merger. Testimony has focused on whether Kroger offered an inadequate store-divestiture plan, creating a potentially significant financial and legal overhang. Albertsons lawsuit against Kroger
• Neutral Sentiment: Kroger’s former CEO defended the company’s efforts to complete the Albertsons transaction, while the current management team reiterated its standalone growth strategy. The court dispute may remain a source of volatility as the market assesses possible damages and settlement costs. Former Kroger CEO defends Albertsons deal

About Kroger

The Kroger Co is a U.S. food and grocery retailer headquartered in Cincinnati, Ohio. Founded by Bernard Kroger in 1883, the company operates supermarkets under banners that include Kroger, Ralphs, Fred Meyer, King Soopers, Fry's, Harris Teeter and Smith's, among others.

Kroger's business includes the sale of fresh food, groceries, general merchandise, household products and health and beauty items. Many of its stores also provide pharmacy services and fuel centers. The company offers digital shopping, pickup and delivery services, loyalty programs and a range of private-label products, including Simple Truth, Private Selection and Kroger-branded products.

Kroger primarily serves customers across the United States, with stores concentrated in the Midwest, South, West and parts of the Mid-Atlantic region.

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