Kroger Sees Unusually Large Options Volume (NYSE:KR)

The Kroger Co. (NYSE:KR) saw some unusual options trading activity on Friday. Traders bought 23,532 call options on the company. This is an increase of 78% compared to the typical daily volume of 13,239 call options.

Institutional Investors Weigh In On Kroger

Several hedge funds have recently bought and sold shares of KR. Ares Financial Consulting LLC acquired a new stake in Kroger during the fourth quarter valued at $25,000. Princeton Global Asset Management LLC grew its position in shares of Kroger by 268.1% during the 4th quarter. Princeton Global Asset Management LLC now owns 416 shares of the company’s stock valued at $26,000 after acquiring an additional 303 shares during the period. MV Capital Management Inc. purchased a new position in shares of Kroger in the 4th quarter valued at about $26,000. Atlantic Union Bankshares Corp acquired a new position in Kroger in the 2nd quarter worth about $28,000. Finally, Lloyd Advisory Services LLC. purchased a new position in Kroger during the fourth quarter worth approximately $28,000. Hedge funds and other institutional investors own 80.93% of the company’s stock.

Wall Street Analysts Forecast Growth

Several research analysts recently issued reports on KR shares. Wall Street Zen lowered shares of Kroger from a “buy” rating to a “hold” rating in a research report on Saturday, December 27th. Jefferies Financial Group reaffirmed a “buy” rating and issued a $82.00 target price on shares of Kroger in a research report on Thursday. Telsey Advisory Group boosted their price objective on shares of Kroger from $80.00 to $82.00 and gave the company an “outperform” rating in a report on Thursday. Citigroup reaffirmed a “neutral” rating and issued a $68.00 target price (down from $74.00) on shares of Kroger in a research report on Wednesday, December 10th. Finally, Wolfe Research reissued an “outperform” rating and set a $75.00 price target on shares of Kroger in a report on Thursday. Eight investment analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $74.19.

Key Kroger News

Here are the key news stories impacting Kroger this week:

• Positive Sentiment: Q4 profit beat and margin improvement — adjusted EPS topped estimates and operating margins widened, driven by sourcing gains and e‑commerce strength. Kroger Reports Fourth Quarter and Full-Year 2025 Results
• Positive Sentiment: E‑commerce momentum — adjusted e‑commerce sales rose ~20%, management expects $400M of e‑commerce operating profit improvement in 2026, supporting forward profitability expectations. Kroger Q4 Earnings Top Estimates, E-Commerce Sales Rise 20%
• Positive Sentiment: Capital returns remain heavy — Kroger completed a large buyback program in 2025 and the board approved an additional $2B repurchase; buybacks are boosting EPS and supporting the stock. PR Newswire: Kroger results & guidance
• Positive Sentiment: New CEO outlines value‑led strategy — Greg Foran is prioritizing lower prices, sharper promotions, AI and faster e‑commerce growth, which investors view as a credible play to regain market share. New Kroger CEO Greg Foran outlines top priorities
• Neutral Sentiment: FY26 guidance mixed — Kroger raised adjusted EPS guidance (5.10–5.30), above consensus, but signaled limited sales growth and a cautious tone that tempers near‑term upside. WSJ: Kroger Posts Higher Profit but Gives Cautious Forecast
• Neutral Sentiment: Analyst reaction mixed — a few boutiques raised targets (Telsey raised its PT) while some remain cautious on sales momentum; consensus still sees modest upside. Benzinga: Price target update
• Negative Sentiment: Dividend payout metric flag — analysis shows the GAAP payout ratio looks elevated (dividends exceed GAAP net income), raising questions about long‑term dividend safety despite adjusted cash flow support. Does This Red Flag Put Kroger’s Chances of Becoming a Dividend Aristocrat at Risk?
• Negative Sentiment: Operational/legal risks — recent product recalls (glass contamination), store closures/layoffs and class‑action e‑commerce wage lawsuits plus union tensions create headline risk and potential costs. IndyStar: Recall

Kroger Stock Up 3.9%

Shares of KR stock traded up $2.82 on Friday, hitting $74.39. The stock had a trading volume of 4,006,549 shares, compared to its average volume of 6,900,809. The company has a quick ratio of 0.45, a current ratio of 0.88 and a debt-to-equity ratio of 2.28. The company has a market cap of $47.08 billion, a PE ratio of 68.88, a P/E/G ratio of 1.73 and a beta of 0.62. The business has a 50 day moving average price of $65.13 and a 200 day moving average price of $65.89. Kroger has a one year low of $58.60 and a one year high of $74.90.

Kroger (NYSE:KR) last released its earnings results on Thursday, March 5th. The company reported $1.28 EPS for the quarter, topping analysts’ consensus estimates of $1.20 by $0.08. Kroger had a net margin of 0.54% and a return on equity of 38.06%. The company had revenue of $34.73 billion during the quarter, compared to analysts’ expectations of $35.10 billion. During the same period last year, the business earned $1.14 EPS. Kroger’s revenue for the quarter was up 1.2% on a year-over-year basis. Kroger has set its FY 2026 guidance at 5.100-5.300 EPS. Research analysts anticipate that Kroger will post 4.44 earnings per share for the current fiscal year.

Kroger Announces Dividend

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

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.