Kroger Target of Unusually High Options Trading (NYSE:KR)

The Kroger Co. (NYSE:KR) was the target of unusually large options trading on Friday. Investors purchased 23,532 call options on the stock. This is an increase of 78% compared to the typical volume of 13,239 call options.

Institutional Investors Weigh In On Kroger

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Bank of Nova Scotia boosted its stake in Kroger by 102.5% in the 2nd quarter. Bank of Nova Scotia now owns 168,395 shares of the company’s stock worth $12,079,000 after purchasing an additional 85,223 shares in the last quarter. CWM LLC lifted its stake in shares of Kroger by 43.4% in the third quarter. CWM LLC now owns 72,244 shares of the company’s stock worth $4,870,000 after buying an additional 21,876 shares in the last quarter. Liberty One Investment Management LLC increased its position in shares of Kroger by 85.0% during the third quarter. Liberty One Investment Management LLC now owns 857,667 shares of the company’s stock valued at $57,828,000 after acquiring an additional 394,060 shares in the last quarter. Mediolanum International Funds Ltd raised its holdings in Kroger by 401.3% in the 3rd quarter. Mediolanum International Funds Ltd now owns 19,470 shares of the company’s stock worth $1,293,000 after acquiring an additional 15,586 shares during the last quarter. Finally, Money Concepts Capital Corp raised its stake in shares of Kroger by 64.7% in the third quarter. Money Concepts Capital Corp now owns 45,267 shares of the company’s stock worth $3,051,000 after purchasing an additional 17,777 shares during the last quarter. Hedge funds and other institutional investors own 80.93% of the company’s stock.

Kroger Trading Up 3.8%

Shares of Kroger stock opened at $74.31 on Friday. The company has a market capitalization of $47.03 billion, a P/E ratio of 48.57, a price-to-earnings-growth ratio of 1.83 and a beta of 0.62. The stock has a fifty day simple moving average of $65.35 and a 200 day simple moving average of $65.92. Kroger has a 12-month low of $58.60 and a 12-month high of $74.90. The company has a current ratio of 0.80, a quick ratio of 0.45 and a debt-to-equity ratio of 2.66.

Kroger (NYSE:KR) last posted its quarterly earnings data on Thursday, March 5th. The company reported $1.28 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.20 by $0.08. Kroger had a net margin of 0.69% and a return on equity of 41.08%. The firm had revenue of $34.73 billion for the quarter, compared to the consensus estimate of $35.10 billion. During the same period in the previous year, the firm earned $1.14 EPS. The business’s revenue for the quarter was up 1.2% compared to the same quarter last year. Kroger has set its FY 2026 guidance at 5.100-5.300 EPS. On average, sell-side analysts anticipate that Kroger will post 4.44 earnings per share for the current fiscal year.

Kroger Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Sunday, March 1st. Investors of record on Friday, February 13th were issued a dividend of $0.35 per share. The ex-dividend date was Friday, February 13th. This represents a $1.40 annualized dividend and a yield of 1.9%. Kroger’s payout ratio is 129.63%.

Analyst Upgrades and Downgrades

KR has been the subject of several recent research reports. Evercore set a $77.00 price target on Kroger and gave the company an “outperform” rating in a research note on Friday, December 5th. BMO Capital Markets reiterated a “market perform” rating and issued a $70.00 target price on shares of Kroger in a report on Thursday. Guggenheim reissued a “buy” rating and set a $78.00 target price on shares of Kroger in a research report on Tuesday, February 10th. Wolfe Research restated an “outperform” rating and issued a $75.00 price target on shares of Kroger in a research report on Thursday. Finally, Citigroup reaffirmed a “neutral” rating and issued a $68.00 price objective (down from $74.00) on shares of Kroger in a research note on Wednesday, December 10th. Eight analysts have rated the stock with a Buy rating and eight have assigned a Hold rating to the company. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $74.38.

Kroger News Summary

Here are the key news stories impacting Kroger this week:

• Positive Sentiment: Q4 results beat on profit and margins: Kroger reported adjusted EPS above estimates, delivered gross‑margin expansion and 20% e‑commerce growth; management also rolled out FY‑26 adjusted EPS guidance above consensus and approved further buybacks — a clear catalyst for earnings per‑share growth. PR Newswire
• Positive Sentiment: Large, sustained capital returns: Management completed accelerated repurchases in 2025 and the board approved an additional $2B repurchase authorization on top of a $7.5B program; analysts and commentators say buybacks plus a growing dividend underpin long‑term per‑share upside. MarketBeat
• Positive Sentiment: Street support and upgrades: Several shops have reiterated/raised ratings and price targets (e.g., Roth MKM reaffirmed buy with a $78 PT; Telsey lifted its target), reinforcing positive sentiment into the print. Benzinga
• Positive Sentiment: Unusual bullish options flow: Call buying spiked (large single‑day activity), suggesting some traders are positioning for additional upside or event‑driven moves.
• Neutral Sentiment: New CEO’s playbook: Greg Foran is pushing lower prices, sharper promotions, AI and e‑commerce improvements to accelerate sales — a credible strategic pivot but execution and timing remain uncertain. FoodBusinessNews
• Neutral Sentiment: Analyst consensus is broadly constructive (moderate buy), but median price targets leave limited near‑term upside absent stronger top‑line revisions. AmericanBankingNews
• Negative Sentiment: Revenue and sales outlook are muted: Q4 revenue slightly missed estimates and management offered modest identical‑sales guidance for 2026 (1–2% ex‑fuel), tempering a rally based solely on EPS strength. Retail Insight Network
• Negative Sentiment: Product recalls: Kroger‑branded and partner rice/frozen products were included in a glass‑fragment recall, creating short‑term inventory, sales and reputational headwinds in affected markets. MSN
• Negative Sentiment: Labor and legal exposure: Class‑action suits over e‑commerce worker classification and heightened union friction (Teamsters commentary) add regulatory/legal risk and potential costs. GroceryDive
• Negative Sentiment: Dividend sustainability question: Commentary flagged a high payout ratio on a GAAP basis (dividend > GAAP net income), which could worry income investors despite strong cash flow and buybacks. 24/7 Wall St.

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.