Kroger (NYSE:KR) Sets New 12-Month Low – Here’s What Happened

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

Kroger News Summary

Here are the key news stories impacting Kroger this week:

• Positive Sentiment: The Giant Eagle acquisition could boost Kroger’s scale, market share, and revenue base in attractive regional markets while strengthening its pharmacy and digital fulfillment footprint. Kroger Tries a Smaller Grocery Deal After Albertsons Merger Fizzled
• Positive Sentiment: Analysts and commentators viewed the deal as a more manageable, offensive move that could help Kroger defend against Walmart and Amazon while buying revenue at a relatively low sales multiple. Kroger Expands Footprint With $1.65 Billion Giant Eagle Acquisition
• Neutral Sentiment: Broader grocery-sector trading was mixed, offering little extra direction from the industry backdrop. Sector Update: Consumer Stocks Mixed Late Afternoon
• Negative Sentiment: Some investors appeared cautious on the acquisition because it adds integration risk and new liabilities at a time when Kroger already carries meaningful debt, which may pressure near-term margins and balance sheet flexibility. Kroger (KR) Stock Slips on Plans to Purchase Giant Eagle for $1.65B

Analysts Set New Price Targets

KR has been the topic of several research analyst reports. JPMorgan Chase & Co. dropped their target price on shares of Kroger from $72.00 to $70.00 and set a “neutral” rating on the stock in a research report on Thursday, June 11th. Jefferies Financial Group restated a “buy” rating and issued a $80.00 price objective on shares of Kroger in a research note on Wednesday, June 3rd. BMO Capital Markets reiterated a “market perform” rating and issued a $70.00 target price on shares of Kroger in a research report on Thursday, March 5th. Morgan Stanley cut their price target on shares of Kroger from $73.00 to $67.00 and set an “equal weight” rating on the stock in a report on Monday, June 22nd. Finally, Weiss Ratings downgraded shares of Kroger from a “hold (c+)” rating to a “hold (c)” rating in a research report on Thursday, June 18th. Nine analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the company. Based on data from MarketBeat, Kroger presently has an average rating of “Moderate Buy” and a consensus price target of $71.94.

Kroger Stock Up 1.1%

The company has a market cap of $34.39 billion, a PE ratio of 33.02, a P/E/G ratio of 1.49 and a beta of 0.44. The business has a 50-day simple moving average of $63.73 and a 200-day simple moving average of $65.94. The company has a quick ratio of 0.39, a current ratio of 0.79 and a debt-to-equity ratio of 2.43.

Kroger (NYSE:KR) last posted its quarterly earnings data 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 company had revenue of $46.12 billion for the quarter, compared to analysts’ expectations of $45.59 billion. Kroger had a net margin of 0.71% and a return on equity of 44.33%. The business’s revenue for the quarter was up 2.2% on a year-over-year basis. During the same period in the previous year, the business earned $1.49 earnings per share. Kroger has set its FY 2026 guidance at 5.100-5.30 EPS. Equities research analysts anticipate that The Kroger Co. will post 5.21 EPS for the current year.

Kroger Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 1st. Investors of record on Saturday, August 15th will be issued a $0.39 dividend. This represents a $1.56 annualized dividend and a yield of 2.8%. The ex-dividend date is Friday, August 14th. This is a positive change from Kroger’s previous quarterly dividend of $0.35. Kroger’s payout ratio is presently 82.35%.

Hedge Funds Weigh In On Kroger

Hedge funds and other institutional investors have recently made changes to their positions in the company. Financial Engines Advisors L.L.C. raised its stake in Kroger by 4.5% in the 4th quarter. Financial Engines Advisors L.L.C. now owns 3,537 shares of the company’s stock valued at $221,000 after purchasing an additional 153 shares during the last quarter. PFG Investments LLC boosted its stake in Kroger by 3.3% during the 1st quarter. PFG Investments LLC now owns 4,899 shares of the company’s stock worth $354,000 after purchasing an additional 157 shares during the last quarter. Smartleaf Asset Management LLC grew its holdings in shares of Kroger by 1.5% during the fourth quarter. Smartleaf Asset Management LLC now owns 10,747 shares of the company’s stock worth $674,000 after buying an additional 162 shares in the last quarter. Stephens Inc. AR raised its position in shares of Kroger by 1.0% in the fourth quarter. Stephens Inc. AR now owns 17,995 shares of the company’s stock valued at $1,124,000 after buying an additional 174 shares during the last quarter. Finally, ROI Financial Advisors LLC raised its position in shares of Kroger by 2.0% in the first quarter. ROI Financial Advisors LLC now owns 8,943 shares of the company’s stock valued at $647,000 after buying an additional 175 shares during the last quarter. Hedge funds and other institutional investors own 80.93% of the company’s stock.

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.