Kroger (NYSE:KR) Rating Lowered to Buy at Wall Street Zen

Key Points

• Kroger's stock rating was downgraded from "strong-buy" to "buy" by Wall Street Zen, indicating a shift in sentiment among analysts.
• Despite the downgrade, analysts such as Evercore ISI and Jefferies have set higher price targets for Kroger at $82.00 and $83.00, respectively.
• Kroger reported earnings of $1.04 per share for the recent quarter, exceeding the consensus estimate, and has projected a FY 2025 EPS guidance of 4.700-4.800.

Kroger (NYSE:KR - Get Free Report) was downgraded by stock analysts at Wall Street Zen from a "strong-buy" rating to a "buy" rating in a research report issued on Sunday.

A number of other equities research analysts also recently issued reports on the stock. Evercore ISI upped their price target on shares of Kroger from $80.00 to $82.00 and gave the company an "outperform" rating in a research note on Tuesday, August 12th. Jefferies Financial Group set a $83.00 price target on shares of Kroger and gave the company a "buy" rating in a research note on Monday, June 23rd. Argus set a $85.00 price target on shares of Kroger in a research note on Thursday. JPMorgan Chase & Co. reaffirmed a "neutral" rating and set a $75.00 price target (down previously from $82.00) on shares of Kroger in a research note on Wednesday, August 20th. Finally, Telsey Advisory Group reaffirmed an "outperform" rating and set a $82.00 price target on shares of Kroger in a research note on Thursday, September 11th. Nine research analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the company. Based on data from MarketBeat, the company presently has an average rating of "Hold" and a consensus target price of $72.70.

Kroger Trading Down 0.5%

Kroger stock opened at $65.63 on Friday. The stock has a market cap of $43.37 billion, a P/E ratio of 16.66, a PEG ratio of 1.91 and a beta of 0.59. The company has a debt-to-equity ratio of 1.85, a current ratio of 0.95 and a quick ratio of 0.54. Kroger has a 1 year low of $54.83 and a 1 year high of $74.90. The firm's 50 day moving average price is $69.99 and its 200-day moving average price is $69.00.

Kroger (NYSE:KR - Get Free Report) last released its quarterly earnings data on Thursday, September 11th. The company reported $1.04 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.00 by $0.04. Kroger had a net margin of 1.86% and a return on equity of 32.62%. The firm had revenue of $33.94 billion for the quarter, compared to analysts' expectations of $34.08 billion. During the same quarter last year, the business posted $0.93 earnings per share. The company's revenue for the quarter was up .1% compared to the same quarter last year. Kroger has set its FY 2025 guidance at 4.700-4.800 EPS. On average, equities analysts predict that Kroger will post 4.44 earnings per share for the current fiscal year.

Insider Buying and Selling at Kroger

In other Kroger news, EVP Gabriel Arreaga sold 37,960 shares of the stock in a transaction dated Wednesday, June 25th. The shares were sold at an average price of $72.44, for a total transaction of $2,749,822.40. Following the completion of the sale, the executive vice president directly owned 75,218 shares of the company's stock, valued at approximately $5,448,791.92. This represents a 33.54% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, VP Carin L. Fike sold 16,475 shares of the stock in a transaction dated Monday, June 23rd. The shares were sold at an average price of $73.79, for a total transaction of $1,215,690.25. Following the sale, the vice president directly owned 49,360 shares of the company's stock, valued at approximately $3,642,274.40. The trade was a 25.02% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders sold 198,948 shares of company stock valued at $14,422,926. 0.44% of the stock is currently owned by corporate insiders.

Institutional Trading of Kroger

Hedge funds have recently modified their holdings of the company. Accent Capital Management LLC purchased a new stake in shares of Kroger during the first quarter valued at about $25,000. SOA Wealth Advisors LLC. raised its position in shares of Kroger by 6,840.0% in the 2nd quarter. SOA Wealth Advisors LLC. now owns 347 shares of the company's stock valued at $25,000 after purchasing an additional 342 shares during the last quarter. Atlantic Union Bankshares Corp purchased a new position in shares of Kroger in the 2nd quarter valued at approximately $28,000. Rossby Financial LCC purchased a new position in shares of Kroger in the 2nd quarter valued at approximately $29,000. Finally, Whipplewood Advisors LLC raised its position in shares of Kroger by 10,425.0% in the 2nd quarter. Whipplewood Advisors LLC now owns 421 shares of the company's stock valued at $30,000 after purchasing an additional 417 shares during the last quarter. 80.93% of the stock is owned by hedge funds and other institutional investors.

Kroger Company Profile

The Kroger Co operates as a food and drug retailer in the United States. The company operates combination food and drug stores, multi-department stores, marketplace stores, and price impact warehouses. Its combination food and drug stores offer natural food and organic sections, pharmacies, general merchandise, pet centers, fresh seafood, and organic produce; and multi-department stores provide apparel, home fashion and furnishings, outdoor living, electronics, automotive products, and toys.

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