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

The Kroger Co. (NYSE:KR) was the recipient of some unusual options trading on Friday. Stock traders acquired 44,796 call options on the stock. This represents an increase of 217% compared to the average daily volume of 14,113 call options.

Kroger Price Performance

KR traded up $1.54 on Friday, reaching $58.49. The stock had a trading volume of 8,374,879 shares, compared to its average volume of 6,850,550. The firm has a 50-day moving average of $57.78 and a 200-day moving average of $63.69. The company has a current ratio of 0.79, a quick ratio of 0.39 and a debt-to-equity ratio of 2.43. Kroger has a fifty-two week low of $54.15 and a fifty-two week high of $76.58. The company has a market capitalization of $35.83 billion, a price-to-earnings ratio of 34.45, a price-to-earnings-growth ratio of 1.58 and a beta of 0.41.

Kroger (NYSE:KR) last issued its quarterly earnings data on Friday, September 11th. The company reported $1.09 EPS for the quarter, topping the consensus estimate of $1.05 by $0.04. Kroger had a return on equity of 44.33% and a net margin of 0.71%.The company had revenue of $34.62 billion during the quarter, compared to analyst estimates of $34.64 billion. During the same quarter in the previous year, the firm earned $1.04 earnings per share. Kroger’s revenue was up 2.0% on a year-over-year basis. Kroger has set its FY 2026 guidance at 5.100-5.300 EPS. As a group, sell-side analysts anticipate that Kroger will post 5.21 EPS for the current year.

Kroger Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, September 1st. Shareholders of record on Saturday, August 15th were paid a dividend of $0.39 per share. This represents a $1.56 dividend on an annualized basis and a dividend yield of 2.7%. The ex-dividend date was Friday, August 14th. This is an increase from Kroger’s previous quarterly dividend of $0.35. Kroger’s dividend payout ratio (DPR) is 91.76%.

Institutional Trading of Kroger

A number of large investors have recently made changes to their positions in KR. BlackRock Inc. purchased a new position in shares of Kroger in the 2nd quarter valued at approximately $3,016,956,000. California State Teachers Retirement System raised its stake in Kroger by 6,190.2% during the second quarter. California State Teachers Retirement System now owns 43,768,080 shares of the company’s stock valued at $2,430,441,000 after buying an additional 43,072,270 shares in the last quarter. State Street Corp grew its holdings in Kroger by 1.2% in the 3rd quarter. State Street Corp now owns 31,948,112 shares of the company’s stock worth $2,153,622,000 after buying an additional 386,503 shares in the last quarter. GQG Partners LLC grew its stake in shares of Kroger by 11.3% in the 4th quarter. GQG Partners LLC now owns 13,398,072 shares of the company’s stock worth $837,113,000 after purchasing an additional 1,360,946 shares during the last quarter. Finally, Dimensional Fund Advisors LP boosted its position in Kroger by 0.4% during the 1st quarter. Dimensional Fund Advisors LP now owns 12,296,026 shares of the company’s stock worth $889,878,000 after acquiring an additional 53,625 shares during the period. 80.93% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Ratings Changes

KR has been the subject of a number of research analyst reports. Royal Bank Of Canada reissued an “outperform” rating on shares of Kroger in a report on Monday, June 1st. Deutsche Bank Aktiengesellschaft set a $68.00 target price on shares of Kroger in a research report on Wednesday. Weiss Ratings cut shares of Kroger from a “hold (c+)” rating to a “hold (c)” rating in a research report on Thursday, June 18th. Guggenheim restated a “buy” rating and issued a $71.00 price target on shares of Kroger in a research note on Thursday, July 2nd. Finally, Jefferies Financial Group reaffirmed a “buy” rating and issued a $80.00 target price on shares of Kroger in a research report on Wednesday, June 3rd. Ten research analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the company’s stock. According to MarketBeat.com, Kroger has an average rating of “Moderate Buy” and an average target price of $71.31.

Trending Headlines about Kroger

Here are the key news stories impacting Kroger this week:

• Positive Sentiment: Kroger reported second-quarter adjusted EPS of $1.09, above the roughly $1.05 analyst consensus and up from $1.04 a year earlier. Operating profit rose to $971 million, supporting confidence in cost controls and profitability. Kroger Beats Q2 Earnings Estimates
• Positive Sentiment: Management reaffirmed fiscal 2026 adjusted EPS guidance of $5.10 to $5.30, signaling that margins and earnings resilience remain intact despite weaker sales trends. Kroger also repurchased $1 billion of shares during the quarter and has maintained its dividend. Kroger Reports Second Quarter 2026 Results
• Positive Sentiment: Higher-growth businesses provided support: adjusted e-commerce sales increased 20%, while Kroger Precision Marketing profit grew 24%. The stock also remains near long-term lows, with some analysts viewing its dividend, buybacks and valuation as attractive for long-term investors. Kroger’s Textbook Entry for Buy-and-Hold Investors
• Neutral Sentiment: Quarterly revenue increased 2% year over year to $34.62 billion, close to expectations, while identical sales excluding fuel rose only 0.2%. The mixed results explain why investors are focusing more on earnings quality and cost savings than on top-line growth.
• Negative Sentiment: Kroger lowered its fiscal 2026 identical-sales forecast excluding fuel to 0.2%–0.8%, from 1%–2%. Executives cited cautious consumer spending, intense grocery price competition, inflation-related pressure and the Inflation Reduction Act’s effect on pharmacy revenue. Kroger Cuts Sales View Due to Macro Challenges
• Negative Sentiment: A cyclospora outbreak reduced demand for fresh produce as shoppers avoided some items, contributing to nearly flat comparable-store sales. Reports of pricing errors at Ohio stores add a reputational and potential regulatory risk, although the financial impact is not yet clear. Kroger’s Comps Slide as Cyclospora Outbreak Affects Produce Sales

About Kroger

The Kroger Co (NYSE: KR) is one of the largest grocery retailers in the United States. Founded in Cincinnati in 1883 by Bernard Kroger, the company operates supermarkets, multi-department stores, pharmacies, convenience stores and fuel centers across the country.

Kroger sells a broad range of fresh foods, packaged groceries, household products, health and beauty items, prepared foods and general merchandise. Its private-label offerings include Simple Truth, Private Selection and Kroger brands.