Kroger (NYSE:KR) Hits New 52-Week Low - Here's What Happened

Key Points

• Kroger shares hit a new 52-week low on Tuesday, trading as low as $55.32 before closing near $55.37, well below the prior close of $55.91.
• The company is trying to support sales with customer-focused promotions, including a revamped rewards program, more digital/coupon savings, and an exclusive celebrity-branded product line.
• Despite some positive initiatives, analyst sentiment remains mixed: several firms have cut or held price targets, while Kroger’s latest earnings missed EPS expectations by a penny even as revenue came in slightly above estimates.

The Kroger Co. (NYSE:KR - Get Free Report)'s stock price hit a new 52-week low on Tuesday . The stock traded as low as $55.32 and last traded at $55.37, with a volume of 252301 shares changing hands. The stock had previously closed at $55.91.

Key Kroger News

Here are the key news stories impacting Kroger this week:

• Positive Sentiment: Kroger is expanding and revamping its rewards program, giving shoppers more ways to redeem points for groceries and fuel. That could help strengthen customer loyalty and support sales. Kroger Revamps Rewards Program: New Ways to Use Points for Groceries and Fuel
• Positive Sentiment: Kroger also launched an exclusive celebrity-branded product line aimed at drawing shoppers back to stores and making weekly grocery trips more appealing. Kroger rolls out exclusive celebrity line to win back shoppers
• Neutral Sentiment: Seasonal and coupon-related coverage highlighted Kroger’s promotional push around July 4th and digital savings, reinforcing that management is leaning on value offerings to attract budget-conscious shoppers.
• Negative Sentiment: Analyst sentiment remains a headwind, with Morgan Stanley reportedly maintaining an Equal Weight rating while cutting its price target to $67 from $73, which can weigh on investor confidence. Is The Kroger Co. (KR) One of the Best Stocks to Buy Now For Good Returns amid Price Target Cuts?
• Negative Sentiment: There was also a food-safety alert involving chicken sold at Kroger and Fred Meyer due to an undeclared allergen, which could create short-term reputational pressure even if the financial impact is limited. Check Your Freezer: Kroger and Fred Meyer Chicken May Contain Undeclared Allergen

Analysts Set New Price Targets

KR has been the subject of a number of analyst reports. Barclays set a $61.00 price objective on shares of Kroger and gave the stock an "equal weight" rating in a research note on Monday, June 22nd. Erste Group Bank downgraded shares of Kroger from a "buy" rating to a "hold" rating in a report on Monday, April 27th. Jefferies Financial Group reiterated a "buy" rating and issued a $80.00 price target on shares of Kroger in a research note on Wednesday, June 3rd. The Goldman Sachs Group reissued a "buy" rating and set a $82.00 price target on shares of Kroger in a report on Friday, June 19th. Finally, Roth Mkm restated a "buy" rating and issued a $78.00 price objective (up from $75.00) on shares of Kroger in a research report on Friday, March 6th. Nine equities research analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $71.94.

Kroger Stock Performance

The firm's 50-day moving average price is $64.22 and its 200-day moving average price is $66.03. 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 stock has a market cap of $33.81 billion, a P/E ratio of 32.46, a PEG ratio of 1.55 and a beta of 0.43.

Kroger (NYSE:KR - Get Free Report) last issued 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). The company had revenue of $46.12 billion for the quarter, compared to the consensus estimate of $45.59 billion. Kroger had a return on equity of 44.33% and a net margin of 0.71%.Kroger's revenue was up 2.2% compared to the same quarter last year. During the same quarter in the prior year, the company posted $1.49 EPS. Kroger has set its FY 2026 guidance at 5.100-5.30 EPS. Sell-side analysts expect that The Kroger Co. will post 5.22 earnings per share for the current fiscal year.

Kroger Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 1st. Shareholders of record on Saturday, August 15th will be issued a dividend of $0.39 per share. This is a boost from Kroger's previous quarterly dividend of $0.35. The ex-dividend date of this dividend is Friday, August 14th. This represents a $1.56 annualized dividend and a dividend yield of 2.8%. Kroger's payout ratio is currently 91.76%.

Institutional Investors Weigh In On Kroger

Large investors have recently made changes to their positions in the company. Brighton Jones LLC increased its stake in Kroger by 27.3% in the 4th quarter. Brighton Jones LLC now owns 15,733 shares of the company's stock worth $962,000 after acquiring an additional 3,373 shares during the last quarter. Woodline Partners LP boosted its position in shares of Kroger by 40.7% during the 1st quarter. Woodline Partners LP now owns 56,243 shares of the company's stock valued at $3,807,000 after acquiring an additional 16,270 shares during the last quarter. Sivia Capital Partners LLC bought a new position in shares of Kroger during the 2nd quarter valued at approximately $201,000. NewEdge Advisors LLC grew its holdings in shares of Kroger by 11.5% in the second quarter. NewEdge Advisors LLC now owns 97,288 shares of the company's stock valued at $6,978,000 after purchasing an additional 10,051 shares in the last quarter. Finally, Nebula Research & Development LLC purchased a new position in shares of Kroger in the second quarter valued at $1,840,000. 80.93% of the stock is owned by institutional investors.

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.

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.