Kroger (NYSE:KR) Stock Rating Upgraded by Wall Street Zen

Kroger (NYSE:KR) was upgraded by equities researchers at Wall Street Zen from a “hold” rating to a “buy” rating in a research note issued on Saturday, Wall Street Zen reports.

Several other research firms have also issued reports on KR. UBS Group set a $66.00 target price on shares of Kroger and gave the stock a “neutral” rating in a research note on Wednesday. Melius Research set a $80.00 price target on Kroger and gave the company a “buy” rating in a research note on Tuesday, September 29th. BNP Paribas Exane raised Kroger from a “neutral” rating to an “outperform” rating and set a $72.00 price target for the company in a report on Wednesday, October 7th. Telsey Advisory Group lowered their price target on Kroger from $78.00 to $75.00 and set an “outperform” rating on the stock in a research report on Monday, September 14th. Finally, Wells Fargo & Company set a $60.00 price target on Kroger and gave the stock an “equal weight” rating in a research report on Wednesday. Twelve equities research analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the stock. Based on data from MarketBeat.com, Kroger presently has a consensus rating of “Moderate Buy” and an average target price of $70.35.

Kroger Stock Performance

Shares of NYSE KR opened at $66.88 on Friday. The company’s fifty day moving average price is $59.71 and its 200 day moving average price is $61.36. Kroger has a 1 year low of $54.15 and a 1 year high of $76.58. The company has a market capitalization of $39.50 billion, a PE ratio of 36.35, a price-to-earnings-growth ratio of 1.88 and a beta of 0.36. The company has a debt-to-equity ratio of 2.59, a quick ratio of 0.31 and a current ratio of 0.70.

Kroger (NYSE:KR) last released its quarterly earnings results on Friday, September 11th. The company reported $1.09 EPS for the quarter, beating the consensus estimate of $1.05 by $0.04. Kroger had a net margin of 0.73% and a return on equity of 49.90%. The company had revenue of $34.62 billion for the quarter, compared to analyst estimates of $34.64 billion. During the same quarter last year, the business earned $1.04 earnings per share. The firm’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. On average, research analysts predict that Kroger will post 5.20 earnings per share for the current year.

Insiders Place Their Bets

In other Kroger news, EVP Mary Adcock sold 72,901 shares of the firm’s stock in a transaction that occurred on 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 of the company’s stock, valued at $10,636,643.10. This trade represents a 29.38% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. 0.41% of the stock is owned by company insiders.

Institutional Investors Weigh In On Kroger

A number of large investors have recently made changes to their positions in KR. BlackRock Inc. purchased a new position in Kroger during the second quarter worth about $3,016,956,000. Legal & General Group Plc acquired a new position in Kroger in the 2nd quarter valued at about $284,501,000. Bank of New York Mellon Corp acquired a new position in Kroger in the 2nd quarter valued at about $195,234,000. Nykredit A S acquired a new position in Kroger in the 2nd quarter valued at about $157,533,000. Finally, Deutsche Bank AG purchased a new stake in shares of Kroger in the 2nd quarter valued at approximately $119,723,000. 80.93% of the stock is currently owned by hedge funds and other institutional investors.

Key Headlines Impacting Kroger

Here are the key news stories impacting Kroger this week:

• Positive Sentiment: Kroger plans to open approximately 110 new stores, lower prices, expand digital capabilities and modernize operations. Management also aims to grow its private-label business to roughly $5 billion, potentially supporting customer retention and higher-margin sales. Kroger Details Growth Strategy to Open 110 Stores, Expand Own Brand to $5B, Modernize Operations
• Positive Sentiment: The proposed savings program could improve efficiency and help fund lower prices without relying entirely on sales growth. Planned savings include operational modernization and greater use of technology and artificial intelligence. Kroger’s $4B savings—a closer look
• Positive Sentiment: New-store development, including a location with a pharmacy and fuel center in Hockley, Texas, indicates continued investment in Kroger’s physical footprint and customer ecosystem. Kroger to break ground on new store with pharmacy and fuel center in Hockley
• Neutral Sentiment: Sell-side analysts continue to show a generally constructive view, with KR receiving a “Moderate Buy” rating; however, the rating does not eliminate concerns about the plan’s execution. The Kroger Co. Stock Rated Moderate Buy
• Negative Sentiment: Management acknowledged that Kroger has lost market share to Walmart and Costco. Cutting prices while funding a major investment program may pressure near-term margins, particularly if the projected savings take longer to materialize. Kroger Is Spending $5 Billion to Cut Prices
• Negative Sentiment: The strategy involves substantial operational change, including corporate job reductions and reliance on AI. Investors may be concerned about execution risk, employee disruption and whether lower prices will generate enough traffic to offset investment costs. 5 big numbers from Kroger’s Investor Day

Kroger Company Profile

The Kroger Co is a U.S. food and grocery retailer headquartered in Cincinnati, Ohio. Founded by Bernard Kroger in 1883, the company operates supermarkets under banners that include Kroger, Ralphs, Fred Meyer, King Soopers, Fry’s, Harris Teeter and Smith’s, among others.

Kroger’s business includes the sale of fresh food, groceries, general merchandise, household products and health and beauty items. Many of its stores also provide pharmacy services and fuel centers. The company offers digital shopping, pickup and delivery services, loyalty programs and a range of private-label products, including Simple Truth, Private Selection and Kroger-branded products.

Kroger primarily serves customers across the United States, with stores concentrated in the Midwest, South, West and parts of the Mid-Atlantic region.