JPMorgan Chase & Co. Issues Pessimistic Forecast for Kroger (NYSE:KR) Stock Price

Key Points

• JPMorgan Chase cut Kroger’s price target from $72 to $70 while keeping a neutral rating, implying only about 8% upside from the current share price.
• Other analysts are mostly cautious but mixed: recent target changes from Citi, Morgan Stanley, BMO, RBC, and UBS leave Kroger with a consensus “Moderate Buy” and an average target of $74.67.
• Kroger shares were trading around $64.72, near the middle of its 52-week range, while the company continues to draw attention from investors amid heavy institutional ownership and ongoing business initiatives like digital shelf labels and fuel promotions.

Kroger (NYSE:KR - Get Free Report) had its price target dropped by research analysts at JPMorgan Chase & Co. from $72.00 to $70.00 in a report released on Thursday,Benzinga reports. The firm currently has a "neutral" rating on the stock. JPMorgan Chase & Co.'s target price would indicate a potential upside of 8.16% from the company's current price.

Several other equities research analysts have also recently commented on KR. Citigroup raised their price target on Kroger from $68.00 to $71.00 and gave the stock a "neutral" rating in a research report on Monday, March 9th. Morgan Stanley set a $73.00 price target on Kroger and gave the stock an "equal weight" rating in a research report on Thursday, March 5th. BMO Capital Markets restated a "market perform" rating and issued a $70.00 price target on shares of Kroger in a research report on Thursday, March 5th. Royal Bank Of Canada restated an "outperform" rating on shares of Kroger in a research report on Monday, June 1st. Finally, UBS Group restated a "neutral" rating on shares of Kroger in a research report on Wednesday. Nine research analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the company. According to MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $74.67.

Kroger Price Performance

Shares of KR traded up $0.26 during mid-day trading on Thursday, reaching $64.72. The company had a trading volume of 1,048,134 shares, compared to its average volume of 6,455,156. Kroger has a twelve month low of $58.60 and a twelve month high of $76.58. The company has a debt-to-equity ratio of 2.66, a current ratio of 0.80 and a quick ratio of 0.42. The company's 50-day moving average is $66.96 and its 200-day moving average is $66.56. The company has a market capitalization of $39.65 billion, a P/E ratio of 42.28, a P/E/G ratio of 1.78 and a beta of 0.42.

Institutional Trading of Kroger

Hedge funds and other institutional investors have recently modified their holdings of the stock. Brighton Jones LLC increased its position in Kroger by 27.3% during the fourth quarter. Brighton Jones LLC now owns 15,733 shares of the company's stock worth $962,000 after buying an additional 3,373 shares during the last quarter. Woodline Partners LP boosted its holdings in shares of Kroger by 40.7% during the first quarter. Woodline Partners LP now owns 56,243 shares of the company's stock worth $3,807,000 after acquiring an additional 16,270 shares during the period. Sivia Capital Partners LLC bought a new stake in shares of Kroger during the second quarter worth approximately $201,000. NewEdge Advisors LLC boosted its holdings in shares of Kroger by 11.5% during the second quarter. NewEdge Advisors LLC now owns 97,288 shares of the company's stock worth $6,978,000 after acquiring an additional 10,051 shares during the period. Finally, Nebula Research & Development LLC bought a new stake in shares of Kroger during the second quarter worth approximately $1,840,000. Institutional investors and hedge funds own 80.93% of the company's stock.

Key Stories Impacting Kroger

Here are the key news stories impacting Kroger this week:

• Positive Sentiment: Kroger is expanding nationwide digital shelf labels and pairing them with summer promotions like 4X Fuel Points and private-label seasonal products, which could improve pricing flexibility, customer loyalty, and in-store/digital engagement. Article Title
• Positive Sentiment: The company is also leaning into fuel savings with special gas deals, which may help drive store traffic and reinforce its value proposition for shoppers. Article Title
• Positive Sentiment: Recent commentary suggests Kroger could still beat earnings estimates again, which may be helping support investor sentiment around the stock. Article Title
• Neutral Sentiment: Shares have recently outperformed a weak market session, showing some relative strength, but the move was not tied to a major new fundamental update. Article Title
• Neutral Sentiment: Kroger is drawing attention for offering free ice cream, limited-edition products, and other promotions, which may help traffic but are more of a near-term marketing lift than a major earnings driver. Article Title
• Negative Sentiment: The company agreed to a $1.25 million settlement over inaccurate calorie information, adding to legal and reputational concerns around labeling and advertising practices. Article Title
• Negative Sentiment: Separate coverage raised questions about Kroger facing “difficult decisions” and leadership/strategy challenges, which could pressure sentiment if investors worry about execution. Article Title

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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