Kroger (NYSE:KR) Cut to Hold at Wall Street Zen

Key Points

• Wall Street Zen downgraded Kroger from buy to hold, adding to a mixed analyst picture even though the consensus rating remains Moderate Buy.
• Kroger shares were under pressure after earnings: adjusted EPS of $1.58 missed estimates by a penny, while the stock was trading near its 52-week low around $56.57.
• Revenue and digital growth were strengths, with quarterly sales of $46.12 billion beating expectations and e-commerce sales rising 19%, but investors remain concerned about margin pressure and higher operating costs.

Kroger (NYSE:KR - Get Free Report) was downgraded by equities research analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a research report issued to clients and investors on Saturday.

A number of other research firms have also weighed in on KR. Weiss Ratings lowered Kroger from a "hold (c+)" rating to a "hold (c)" rating in a research note on Thursday. Royal Bank Of Canada restated an "outperform" rating on shares of Kroger in a research note on Monday, June 1st. Wolfe Research reaffirmed an "outperform" rating and set a $75.00 target price on shares of Kroger in a report on Thursday, March 5th. The Goldman Sachs Group reiterated a "buy" rating and set a $82.00 price target on shares of Kroger in a research report on Friday. Finally, Jefferies Financial Group reissued a "buy" rating and issued a $80.00 price target on shares of Kroger in a report on Wednesday, June 3rd. Ten equities research analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the company. According to MarketBeat, Kroger presently has a consensus rating of "Moderate Buy" and an average target price of $75.12.

Kroger Stock Down 0.1%

KR stock opened at $56.57 on Friday. The company has a market capitalization of $34.65 billion, a P/E ratio of 33.27, a price-to-earnings-growth ratio of 1.59 and a beta of 0.42. Kroger has a 12 month low of $56.32 and a 12 month high of $76.58. The firm's fifty day simple moving average is $65.51 and its 200-day simple moving average is $66.33. The company has a debt-to-equity ratio of 2.43, a current ratio of 0.79 and a quick ratio of 0.42.

Kroger (NYSE:KR - Get Free Report) last issued its earnings results on Thursday, June 18th. The company reported $1.58 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.59 by ($0.01). The business had revenue of $46.12 billion for the quarter, compared to analysts' expectations of $45.59 billion. Kroger had a return on equity of 44.33% and a net margin of 0.71%.The company's revenue for the quarter was up 2.2% on a year-over-year basis. During the same period last year, the business earned $1.49 EPS. Kroger has set its FY 2026 guidance at 5.100-5.30 EPS. As a group, equities research analysts forecast that Kroger will post 5.25 earnings per share for the current year.

Institutional Investors Weigh In On Kroger

Several hedge funds have recently modified their holdings of the company. Vanguard Group Inc. raised its holdings in Kroger by 1.1% in the 4th quarter. Vanguard Group Inc. now owns 77,169,425 shares of the company's stock worth $4,821,546,000 after purchasing an additional 868,529 shares during the period. Wellington Management Group LLP grew its holdings in Kroger by 61.1% in the third quarter. Wellington Management Group LLP now owns 33,367,551 shares of the company's stock valued at $2,249,307,000 after purchasing an additional 12,652,261 shares during the period. State Street Corp grew its holdings in Kroger by 1.2% in the third quarter. State Street Corp now owns 31,948,112 shares of the company's stock valued at $2,153,622,000 after purchasing an additional 386,503 shares during the period. GQG Partners LLC increased its position in shares of Kroger by 11.3% in the fourth quarter. GQG Partners LLC now owns 13,398,072 shares of the company's stock valued at $837,113,000 after buying an additional 1,360,946 shares in the last quarter. Finally, Dimensional Fund Advisors LP raised its stake in shares of Kroger by 0.4% during the 1st 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. 80.93% of the stock is owned by hedge funds and other institutional investors.

Kroger News Roundup

Here are the key news stories impacting Kroger this week:

• Positive Sentiment: Revenue came in above expectations at $46.12 billion, and Kroger said identical sales excluding fuel rose 1.0%, showing demand for groceries and essentials remains resilient. Kroger Q1 Earnings Miss Despite Revenue Beat & E-commerce Growth
• Positive Sentiment: Digital growth was a bright spot: e-commerce sales increased 19%, and Kroger’s media segment turned profitable, which supports the company’s longer-term growth strategy. The Kroger Co (KR) Q1 2026 Earnings Call Highlights: Strong eCommerce Growth and Profitability ...
• Neutral Sentiment: Management reaffirmed full-year guidance, which may calm some investors, but it was not enough to offset concerns about near-term profitability. Kroger Reports First Quarter 2026 Results
• Neutral Sentiment: Analyst commentary is split, with some viewing the selloff as a value opportunity while others say margin pressure and cautious consumers make the stock less attractive in the near term. Why Kroger’s Pullback Could Be a Gift for Patient Investors
• Negative Sentiment: Adjusted EPS of $1.58 missed estimates by a penny, and investors reacted strongly to signs that pricing investments and higher operating costs are pressuring margins. Kroger Q1 Earnings Miss Despite Revenue Beat & E-commerce Growth
• Negative Sentiment: Several reports noted that consumers are under pressure and that Kroger’s cost growth is outrunning sales growth, which is the main reason shares sold off after earnings. Kroger beats quarterly sales estimates

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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