Kroger (NYSE:KR) Given "Buy" Rating at Guggenheim

Key Points

• Guggenheim reiterated a Buy rating on Kroger and set a $71 price target, implying about 26.5% upside from the previous close.
• Analyst sentiment is mixed overall: Kroger has 10 Buy ratings and 9 Hold ratings, with an average Moderate Buy rating and a consensus target of $71.94.
• Kroger recently reported Q1 earnings of $1.58 per share, slightly below estimates, while revenue came in above expectations at $46.12 billion and rose 2.2% year over year.

Kroger (NYSE:KR - Get Free Report)'s stock had its "buy" rating restated by stock analysts at Guggenheim in a research report issued to clients and investors on Thursday,Benzinga reports. They presently have a $71.00 target price on the stock. Guggenheim's price target points to a potential upside of 26.49% from the company's previous close.

A number of other equities analysts have also recently issued reports on the company. Erste Group Bank cut Kroger from a "buy" rating to a "hold" rating in a report on Monday, April 27th. The Goldman Sachs Group reiterated a "buy" rating and issued a $82.00 target price on shares of Kroger in a report on Friday, June 19th. BMO Capital Markets reissued a "market perform" rating and set a $70.00 price objective on shares of Kroger in a research report on Thursday, March 5th. Morgan Stanley cut their price target on Kroger from $73.00 to $67.00 and set an "equal weight" rating for the company in a research note on Monday, June 22nd. Finally, JPMorgan Chase & Co. cut their price target on shares of Kroger from $72.00 to $70.00 and set a "neutral" rating on the stock in a report on Thursday, June 11th. Ten analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the stock. According to MarketBeat, Kroger presently has an average rating of "Moderate Buy" and an average price target of $71.94.

Kroger Price Performance

NYSE:KR opened at $56.13 on Thursday. The firm's 50-day simple moving average is $63.73 and its 200 day simple moving average is $65.94. Kroger has a 52 week low of $54.15 and a 52 week high of $76.58. The company has a debt-to-equity ratio of 2.43, a quick ratio of 0.39 and a current ratio of 0.79. The firm has a market cap of $34.39 billion, a price-to-earnings ratio of 33.02, a P/E/G ratio of 1.49 and a beta of 0.44.

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

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the company. Vanguard Group Inc. increased its position in shares of Kroger by 1.1% in the fourth 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 last quarter. Wellington Management Group LLP increased its position in shares of 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 acquiring an additional 12,652,261 shares during the period. State Street Corp raised its holdings in shares of Kroger by 1.2% during the third quarter. State Street Corp now owns 31,948,112 shares of the company's stock valued at $2,153,622,000 after acquiring an additional 386,503 shares in the last quarter. GQG Partners LLC lifted its holdings in Kroger by 11.3% in the fourth quarter. GQG Partners LLC now owns 13,398,072 shares of the company's stock worth $837,113,000 after buying an additional 1,360,946 shares during the period. Finally, Dimensional Fund Advisors LP lifted its stake in shares of Kroger by 0.4% in the 1st quarter. Dimensional Fund Advisors LP now owns 12,296,026 shares of the company's stock valued at $889,878,000 after purchasing an additional 53,625 shares during the period. 80.93% of the stock is currently owned by hedge funds and other institutional investors.

Key Kroger News

Here are the key news stories impacting Kroger this week:

• Positive Sentiment: Kroger’s Giant Eagle acquisition expands its store base and pharmacy reach, potentially strengthening long-term earnings and market share in key regional markets.
• Positive Sentiment: The company is also rolling out Fourth of July grocery deals and rewards-driven savings, which could help support customer traffic during a highly competitive holiday period. Kroger joins 4th of July grocery fight with new deals
• Neutral Sentiment: Several reports say the deal could face regulatory review, but the hurdles may be smaller than Kroger’s failed Albertsons merger because Giant Eagle is a more regional, less transformative acquisition.
• Neutral Sentiment: Some analysts still describe Kroger as fairly valued, with margins remaining a key focus, so the stock’s upside may depend on successful integration and sustained profitability improvements.
• Negative Sentiment: Investors are also concerned about financing, since Kroger is taking on roughly $400 million of Giant Eagle liabilities and already carries meaningful leverage, which could pressure near-term sentiment.
• Negative Sentiment: Comments from market watchers suggest broader caution around ambitious expansion plans, with some traders linking Kroger’s move to the recent weakness seen in stocks tied to large strategic deals.

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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