Kroger (NYSE:KR) Cut to “Equal Weight” at Wells Fargo & Company

Wells Fargo & Company downgraded shares of Kroger (NYSE:KR) from an overweight rating to an equal weight rating in a report issued on Wednesday, Marketbeat reports. Wells Fargo & Company currently has $68.00 price target on the stock, down from their previous price target of $70.00.

Several other equities research analysts have also issued reports on KR. Deutsche Bank Aktiengesellschaft upgraded shares of Kroger from a “hold” rating to a “buy” rating and set a $75.00 target price for the company in a report on Thursday, January 8th. Evercore set a $77.00 target price on Kroger and gave the company an “outperform” rating in a research note on Friday, December 5th. Morgan Stanley set a $67.00 price target on Kroger and gave the stock an “equal weight” rating in a report on Thursday, January 15th. Wall Street Zen cut Kroger from a “buy” rating to a “hold” rating in a report on Saturday, December 27th. Finally, UBS Group reiterated a “neutral” rating and issued a $70.00 target price (down from $74.00) on shares of Kroger in a research note on Friday, December 5th. Seven investment analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average price target of $73.93.

Kroger Price Performance

NYSE:KR opened at $68.13 on Wednesday. The firm has a market capitalization of $43.11 billion, a price-to-earnings ratio of 63.08, a PEG ratio of 1.70 and a beta of 0.62. The company has a debt-to-equity ratio of 2.28, a current ratio of 0.88 and a quick ratio of 0.45. The business has a 50 day simple moving average of $64.60 and a 200-day simple moving average of $65.93. Kroger has a 1 year low of $58.60 and a 1 year high of $74.90.

Kroger (NYSE:KR) last released its earnings results on Thursday, December 4th. The company reported $1.05 earnings per share for the quarter, beating the consensus estimate of $1.03 by $0.02. The firm had revenue of $33.86 billion for the quarter, compared to the consensus estimate of $34.27 billion. Kroger had a return on equity of 38.06% and a net margin of 0.54%.The company’s revenue for the quarter was up .7% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.98 EPS. Kroger has set its FY 2025 guidance at 4.750-4.800 EPS. Equities analysts forecast that Kroger will post 4.44 EPS for the current year.

Kroger Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Sunday, March 1st. Shareholders of record on Friday, February 13th will be given a dividend of $0.35 per share. The ex-dividend date of this dividend is Friday, February 13th. This represents a $1.40 dividend on an annualized basis and a yield of 2.1%. Kroger’s payout ratio is 129.63%.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the business. Brighton Jones LLC raised its stake in Kroger by 27.3% in the fourth quarter. Brighton Jones LLC now owns 15,733 shares of the company’s stock worth $962,000 after buying an additional 3,373 shares in the last quarter. Woodline Partners LP raised its position in shares of Kroger by 40.7% in the 1st quarter. Woodline Partners LP now owns 56,243 shares of the company’s stock worth $3,807,000 after acquiring an additional 16,270 shares in the last quarter. Sivia Capital Partners LLC bought a new stake in Kroger during the second quarter valued at about $201,000. Envestnet Asset Management Inc. boosted its position in Kroger by 8.8% during the second quarter. Envestnet Asset Management Inc. now owns 818,239 shares of the company’s stock valued at $58,692,000 after purchasing an additional 66,394 shares in the last quarter. Finally, Ashton Thomas Private Wealth LLC grew its stake in Kroger by 137.0% in the second quarter. Ashton Thomas Private Wealth LLC now owns 22,914 shares of the company’s stock valued at $1,644,000 after purchasing an additional 13,245 shares during the last quarter. Hedge funds and other institutional investors own 80.93% of the company’s stock.

Key Headlines Impacting Kroger

Here are the key news stories impacting Kroger this week:

• Positive Sentiment: Appointed a new CEO with Walmart U.S. experience — Kroger has hired the former Walmart U.S. boss as CEO, a hire investors may view as strengthening Kroger’s operations, merchandising and scale play. The Supply Side: Former Walmart U.S. boss hired as Kroger CEO
• Positive Sentiment: Pharmacy initiative to offer savings on GLP‑1 drugs — Kroger rolled out programs to reduce out‑of‑pocket costs for GLP‑1 medications, which can drive pharmacy traffic and same‑store sales if uptake is meaningful. Kroger Offers Savings Programs For GLP-1 Medications
• Positive Sentiment: Strengthening consumer brand play via MPearlRock — Kroger’s affiliate MPearlRock added three operating advisors to bolster value creation for portfolio brands, supporting long‑term growth in higher‑margin channels. MPearlRock Announces Addition of Three Distinguished Operating Advisors
• Positive Sentiment: Community/PR efforts — Kroger continued community outreach with donations and “Pack the Pantry” events at HBCUs, supporting brand goodwill and customer engagement. Kroger donates $35K to fight food insecurity at HBCUs
• Neutral Sentiment: Ocado comments underscore Kroger’s automation pullback but broader market opportunity remains — Ocado says it still sees U.S. prospects even after Kroger closed several robotic DCs, highlighting a mixed signal on Kroger’s tech path. Ocado upbeat on US prospects despite Kroger setback
• Negative Sentiment: Wells Fargo downgraded Kroger to Equal Weight and cut its price target to $68, citing caution on spending and growth — this analyst move is directly negative for sentiment and could limit near‑term upside. Wells Fargo Turns Neutral on Kroger (KR), Flags Spending and Growth Concerns
• Negative Sentiment: Continued store closures — reports that Kroger (parent of Fred Meyer/QFC) is closing stores nationwide may signal ongoing restructuring or weak locations, which can weigh on sales growth and investor sentiment. Fred Meyer, QFC parent company Kroger continues store closures nationwide

Kroger Company Profile

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.