Traders Buy Large Volume of Kroger Call Options (NYSE:KR)

Key Points

• Kroger saw unusually heavy call-option activity: Investors purchased 37,928 call options, roughly 150% above the typical volume.
• Insider sentiment was mixed: EVP Mary Adcock sold 72,901 shares worth approximately $4.43 million, while institutional investors and hedge funds collectively own 80.93% of Kroger.
• The stock fell 1% to $58.90, despite beating quarterly EPS estimates and maintaining fiscal 2026 guidance. Analysts have a “Moderate Buy” consensus rating with an average price target of $69.69, and Kroger declared a quarterly dividend of $0.39 per share.

The Kroger Co. (NYSE:KR - Get Free Report) was the recipient of some unusual options trading activity on Friday. Investors acquired 37,928 call options on the stock. This is an increase of approximately 150% compared to the typical volume of 15,193 call options.

Insiders Place Their Bets

In other Kroger news, EVP Mary Adcock sold 72,901 shares of the company's stock in a transaction dated Friday, September 18th. The shares were sold at an average price of $60.70, for a total value of $4,425,090.70. Following the transaction, the executive vice president directly owned 175,233 shares in the company, valued at approximately $10,636,643.10. This represents a 29.38% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Insiders own 0.41% of the company's stock.

Hedge Funds Weigh In On Kroger

Several hedge funds and other institutional investors have recently made changes to their positions in KR. Private Client Services LLC acquired a new stake in Kroger in the 3rd quarter valued at $216,000. QRG Capital Management Inc. lifted its stake in shares of Kroger by 5.3% during the second quarter. QRG Capital Management Inc. now owns 195,088 shares of the company's stock worth $10,833,000 after purchasing an additional 9,877 shares in the last quarter. Envestnet Portfolio Solutions Inc. boosted its position in shares of Kroger by 10.3% in the second quarter. Envestnet Portfolio Solutions Inc. now owns 5,945 shares of the company's stock worth $330,000 after buying an additional 556 shares during the period. MCF Advisors LLC grew its stake in shares of Kroger by 3.5% in the second quarter. MCF Advisors LLC now owns 13,391 shares of the company's stock valued at $744,000 after buying an additional 457 shares in the last quarter. Finally, Engineers Gate Manager LP grew its stake in shares of Kroger by 537.2% in the second quarter. Engineers Gate Manager LP now owns 117,646 shares of the company's stock valued at $6,533,000 after buying an additional 99,183 shares in the last quarter. Institutional investors and hedge funds own 80.93% of the company's stock.

Kroger Trading Down 1.0%

KR stock traded down $0.58 during trading on Friday, reaching $58.90. 2,080,350 shares of the stock traded hands, compared to its average volume of 6,999,399. The firm has a market capitalization of $34.79 billion, a PE ratio of 32.02, a P/E/G ratio of 1.61 and a beta of 0.36. The company has a debt-to-equity ratio of 2.59, a current ratio of 0.70 and a quick ratio of 0.31. The business's 50 day moving average price is $58.18 and its 200-day moving average price is $62.53. Kroger has a 52-week low of $54.15 and a 52-week high of $76.58.

Kroger (NYSE:KR - Get Free Report) last released its quarterly earnings data on Friday, September 11th. The company reported $1.09 EPS for the quarter, topping analysts' consensus estimates of $1.05 by $0.04. Kroger had a return on equity of 49.90% and a net margin of 0.73%.The company had revenue of $34.62 billion for the quarter, compared to the consensus estimate of $34.64 billion. During the same period last year, the business posted $1.04 EPS. The company's quarterly revenue was up 2.0% compared to the same quarter last year. Kroger has set its FY 2026 guidance at 5.100-5.300 EPS. As a group, sell-side analysts forecast that Kroger will post 5.19 earnings per share for the current year.

Kroger Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 1st. Stockholders of record on Monday, November 16th will be given a $0.39 dividend. The ex-dividend date of this dividend is Monday, November 16th. This represents a $1.56 annualized dividend and a dividend yield of 2.6%. Kroger's dividend payout ratio is presently 84.78%.

Wall Street Analyst Weigh In

KR has been the topic of several recent analyst reports. Citigroup reissued a "neutral" rating and set a $57.00 price objective (down from $61.00) on shares of Kroger in a research note on Tuesday, September 1st. Guggenheim reissued a "buy" rating and set a $66.00 price target (down from $71.00) on shares of Kroger in a research note on Monday, September 14th. Weiss Ratings restated a "hold (c)" rating on shares of Kroger in a report on Monday, September 14th. The Goldman Sachs Group reaffirmed a "buy" rating and issued a $82.00 price objective on shares of Kroger in a research report on Friday, June 19th. Finally, Wall Street Zen downgraded Kroger from a "buy" rating to a "hold" rating in a research report on Saturday, June 20th. Eleven equities research analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company's stock. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $69.69.

Kroger News Roundup

Here are the key news stories impacting Kroger this week:

• Positive Sentiment: Digital growth remains a bright spot. Kroger’s e-commerce sales are growing about 20%, while improving digital profitability could help offset slower physical-store sales and support the company’s earnings mix. Can Kroger's Digital Growth Offset Its Softer Fiscal 2026 Sales View?
• Positive Sentiment: New loyalty and payment initiatives could improve customer retention. The Kroger Rewards World Elite Mastercard is designed to increase grocery and fuel savings, potentially encouraging repeat purchases and expanding customer data opportunities. Kroger Introduces Kroger Rewards World Elite Mastercard
• Positive Sentiment: Kroger is investing in its store base. A $2 million Royal Lakes Marketplace renovation, a new Delaware, Ohio, store, and a pilot of 24-hour operations at six Ohio and Indiana locations could help improve traffic and recapture customers from rivals. Kroger Tests 24-Hour Stores in Ohio and Indiana
• Neutral Sentiment: Customer-experience efforts are continuing. Kroger is introducing updated employee uniforms and a new dress-code policy, but the direct financial impact is unlikely to be material in the near term. Kroger Updates In-Store Employees' Look With New Uniforms
• Negative Sentiment: Slower comparable sales are the key overhang. Analysts describe a cautious consumer, pharmacy-related headwinds and rising costs as risks to fiscal 2026 revenue growth, even though earnings resilience and cost controls remain supportive. Is Kroger Stock a Buy as Value Meets Slower Comparable-Sales Growth?
• Negative Sentiment: Higher prices remain a reputational and demand risk. Protests over Kroger’s cage-free egg pricing highlight customer sensitivity to inflation and the possibility that shoppers may trade down or switch to competitors. Protests of Kroger's Cage-Free Eggs

Kroger Company Profile

The Kroger Co is a U.S.-based food and consumer goods retailer headquartered in Cincinnati, Ohio. Founded in 1883 by Bernard Kroger, the company has grown into one of the largest supermarket operators in the United States.

Kroger operates supermarkets, multi-department stores, marketplace-format stores, pharmacies and fuel centers. Its stores sell groceries, fresh produce, meat, seafood, bakery and deli products, household essentials, health and beauty items, and general merchandise. The company also offers digital shopping, pickup and delivery services, loyalty programs, and a range of private-label products.

The company serves customers across numerous U.S.

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.