Van ECK Associates Corp Sells 50,348 Shares of The Kroger Co. $KR

Key Points

• Van ECK Associates cut its Kroger stake by 41.9% in the second quarter, selling 50,348 shares and retaining 69,944 shares valued at approximately $3.88 million. Institutional investors collectively own 80.93% of Kroger.
• Kroger reported quarterly revenue of $46.12 billion, up 2.2% year over year and above estimates, but earnings per share of $1.58 narrowly missed consensus. The company raised its quarterly dividend to $0.39 per share, implying a 2.7% annualized yield.
• Analyst sentiment remains moderately positive, with a consensus “Moderate Buy” rating and an average price target of $71.75 versus the stock’s reported price of $58.53, though some analysts recently lowered targets and maintained neutral ratings.

Van ECK Associates Corp trimmed its stake in shares of The Kroger Co. (NYSE:KR - Free Report) by 41.9% during the 2nd quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 69,944 shares of the company's stock after selling 50,348 shares during the quarter. Van ECK Associates Corp's holdings in Kroger were worth $3,884,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other large investors have also bought and sold shares of the stock. BlackRock Inc. purchased a new stake in shares of Kroger during the second quarter valued at approximately $3,016,956,000. Norges Bank bought a new stake in Kroger during the 4th quarter valued at $470,561,000. Legal & General Group Plc bought a new stake in Kroger during the 2nd quarter valued at $284,501,000. Bank of New York Mellon Corp purchased a new stake in Kroger during the 2nd quarter valued at $195,234,000. Finally, Deutsche Bank AG purchased a new stake in Kroger during the 2nd quarter valued at $119,723,000. 80.93% of the stock is owned by hedge funds and other institutional investors.

Kroger Trading Up 0.5%

Shares of NYSE KR opened at $58.53 on Friday. The Kroger Co. has a 1 year low of $54.15 and a 1 year high of $76.58. 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 firm has a 50-day moving average of $57.69 and a 200 day moving average of $64.09. The stock has a market cap of $35.86 billion, a P/E ratio of 34.43, a price-to-earnings-growth ratio of 1.63 and a beta of 0.41.

Kroger (NYSE:KR - Get Free Report) last announced its earnings results on Thursday, June 18th. The company reported $1.58 earnings per share for the quarter, missing analysts' consensus estimates of $1.59 by ($0.01). Kroger had a net margin of 0.71% and a return on equity of 44.33%. The business had revenue of $46.12 billion for the quarter, compared to the consensus estimate of $45.59 billion. During the same period in the prior year, the business posted $1.49 EPS. Kroger's revenue for the quarter was up 2.2% on a year-over-year basis. Kroger has set its FY 2026 guidance at 5.100-5.30 EPS. As a group, sell-side analysts expect that The Kroger Co. will post 5.21 EPS for the current fiscal year.

Kroger Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, September 1st. Shareholders of record on Saturday, August 15th were paid a dividend of $0.39 per share. The ex-dividend date was Friday, August 14th. This is a positive change from Kroger's previous quarterly dividend of $0.35. This represents a $1.56 dividend on an annualized basis and a yield of 2.7%. Kroger's dividend payout ratio (DPR) is presently 91.76%.

Kroger News Roundup

Here are the key news stories impacting Kroger this week:

• Positive Sentiment: Kroger named Mark Ibbotson executive vice president and chief store operations officer, effective September 14. His experience leading Walmart’s e-commerce platform could support Kroger’s digital ordering, store productivity and omnichannel strategy. Kroger names Mark Ibbotson Executive Vice President and Chief Store Operations Officer
• Neutral Sentiment: Brokerages collectively maintain a “Moderate Buy” rating on KR, suggesting analysts see potential upside but not a strong consensus catalyst. Kroger Given Average Rating of Moderate Buy
• Neutral Sentiment: Analysts describe Kroger’s valuation as broadly fair after a roughly 40% five-year return. The assessment offers limited support for the shares but does not identify a compelling bargain. Kroger Stock Looks Fair On Earnings While Returns Stay Strong
• Neutral Sentiment: New Kroger Marketplace developments in London, including a Crumbl Cookies location, indicate continued investment in stores and expanded customer offerings, although the direct financial impact appears limited. Kroger Marketplace and Crumbl Cookies Among New London Developments
• Negative Sentiment: Oppenheimer expects Kroger’s fiscal second-quarter identical sales to fall short of consensus amid a challenging grocery environment. A weaker same-store sales outlook raises concerns about customer traffic, pricing and margin performance. Kroger Could Miss Quarterly Identical Sales Views
• Negative Sentiment: Kroger’s planned $1.65 billion grocery acquisition is drawing scrutiny because the company remains in litigation related to its prior merger attempt. Reusing a similar regulatory strategy could increase execution risk, legal costs and uncertainty around the deal. Kroger Is Buying Another Grocery Chain While Still in Court
• Negative Sentiment: A recent sell-focused analysis points to Kroger’s underperformance over the past six months and argues that investors may find more attractive opportunities elsewhere. This reinforces the broader cautious tone surrounding the shares. 3 Reasons to Sell KR and 1 Stock to Buy Instead

Analyst Ratings Changes

A number of equities analysts have issued reports on the stock. Barclays set a $61.00 price objective on shares of Kroger and gave the company an "equal weight" rating in a research report on Monday, June 22nd. Evercore reiterated an "outperform" rating and issued a $78.00 price target on shares of Kroger in a report on Tuesday, July 7th. Citigroup reaffirmed a "neutral" rating and set a $57.00 price objective (down from $61.00) on shares of Kroger in a research report on Tuesday. Morgan Stanley reduced their target price on Kroger from $73.00 to $67.00 and set an "equal weight" rating on the stock in a report on Monday, June 22nd. Finally, The Goldman Sachs Group restated a "buy" rating and issued a $82.00 target price on shares of Kroger in a research note on Friday, June 19th. Ten equities research analysts have rated the stock with a Buy rating and nine have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $71.75.

Kroger 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.

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.

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