Kroger (NYSE:KR) Shares Gap Up – Should You Buy?

The Kroger Co. (NYSE:KR)’s share price gapped up before the market opened on Monday . The stock had previously closed at $67.50, but opened at $71.25. Kroger shares last traded at $71.93, with a volume of 3,996,107 shares.

Key Kroger News

Here are the key news stories impacting Kroger this week:

• Positive Sentiment: Board appointed Greg Foran, a former Walmart executive, as Kroger’s CEO and a member of the board — the hire is being framed as a strategic move to sharpen Kroger’s competitive play in large-format retail and accelerate execution on its growth initiatives. Article Title
• Positive Sentiment: Market reaction: reports of the CEO appointment triggered an immediate rally in KR shares in premarket and morning trade, reflecting investor optimism about operational turnaround potential under Foran. Article Title
• Positive Sentiment: Analyst backing: Telsey Advisory Group reaffirmed an “outperform” rating and set an $80 price target, signaling roughly mid-double-digit upside from current levels and giving the stock near-term upside support. Article Title
• Positive Sentiment: Bullish research: recent analyst/commentary pieces highlight Kroger’s resilient grocery fundamentals, strong e‑commerce growth and margin levers (private label, AI efficiencies), supporting a “buy” narrative if management executes. Article Title
• Neutral Sentiment: Strategic rationale: coverage notes Kroger hired a Walmart alum specifically to better compete with Walmart — this explains the hire but also underscores the competitive pressure Kroger faces in low-margin grocery. Article Title
• Negative Sentiment: Governance/legacy risk: reports remind investors the CEO search follows last year’s leadership upheaval after a board investigation related to the prior CEO — lingering governance concerns remain a watch item that could affect sentiment if new issues emerge. Article Title

Wall Street Analyst Weigh In

Several research analysts have recently weighed in on the stock. Evercore set a $77.00 price target on shares of Kroger and gave the company an “outperform” rating in a report on Friday, December 5th. Telsey Advisory Group restated an “outperform” rating and issued a $80.00 price target on shares of Kroger in a report on Monday. Morgan Stanley set a $67.00 price objective on Kroger and gave the stock an “equal weight” rating in a report on Thursday, January 15th. BMO Capital Markets reaffirmed a “market perform” rating on shares of Kroger in a research report on Monday. Finally, UBS Group reissued a “neutral” rating and issued a $70.00 price objective (down previously from $74.00) on shares of Kroger in a research report on Friday, December 5th. Eight equities research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $74.07.

Kroger Stock Performance

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 company has a fifty day moving average price of $63.01 and a two-hundred day moving average price of $66.16. The company has a market capitalization of $44.39 billion, a P/E ratio of 64.95, a PEG ratio of 1.72 and a beta of 0.62.

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

Kroger Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Sunday, March 1st. Investors of record on Friday, February 13th will be given a dividend of $0.35 per share. This represents a $1.40 dividend on an annualized basis and a dividend yield of 2.0%. The ex-dividend date of this dividend is Friday, February 13th. Kroger’s dividend payout ratio (DPR) is presently 129.63%.

Hedge Funds Weigh In On Kroger

Institutional investors and hedge funds have recently bought and sold shares of the company. PDS Planning Inc raised its position in shares of Kroger by 2.0% in the second quarter. PDS Planning Inc now owns 7,715 shares of the company’s stock valued at $553,000 after purchasing an additional 152 shares during the period. WESPAC Advisors LLC grew its stake in Kroger by 1.2% in the 3rd quarter. WESPAC Advisors LLC now owns 13,585 shares of the company’s stock valued at $916,000 after buying an additional 167 shares in the last quarter. WPG Advisers LLC raised its holdings in Kroger by 16.8% during the 3rd quarter. WPG Advisers LLC now owns 1,160 shares of the company’s stock valued at $78,000 after acquiring an additional 167 shares during the period. Parkside Financial Bank & Trust lifted its position in shares of Kroger by 4.9% during the second quarter. Parkside Financial Bank & Trust now owns 3,648 shares of the company’s stock worth $262,000 after acquiring an additional 170 shares in the last quarter. Finally, Community Bank & Trust Waco Texas lifted its position in shares of Kroger by 0.9% during the third quarter. Community Bank & Trust Waco Texas now owns 18,846 shares of the company’s stock worth $1,270,000 after acquiring an additional 173 shares in the last quarter. 80.93% of the stock is owned by institutional investors.

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.