Kroger (NYSE:KR) Shares Gap Down – Time to Sell?

The Kroger Co. (NYSE:KR) gapped down prior to trading on Thursday . The stock had previously closed at $68.68, but opened at $65.28. Kroger shares last traded at $66.6330, with a volume of 1,191,924 shares trading hands.

More Kroger News

Here are the key news stories impacting Kroger this week:

• Positive Sentiment: Kroger announced it will host its first-quarter 2026 earnings conference call on June 18, which keeps investors focused on upcoming results and any updates on pricing strategy and margins. Kroger Announces First Quarter Conference Call with Investors
• Positive Sentiment: Kroger is also being viewed as a beneficiary of consumer trade-down trends as shoppers face higher gas prices, which could support traffic if its lower-price strategy resonates with value-focused households. Rising Gas Prices Are Hitting Household Budgets. Some Grocery Stores Are Eyeing Price Cuts In Response.
• Neutral Sentiment: Valerie Jabbar, senior vice president of Retail Divisions, retired after 38 years with Kroger; the move is a leadership update but does not appear to be a major stock driver on its own. Kroger Senior Vice President Valerie Jabbar Announces Retirement After 38 Years of Service
• Neutral Sentiment: Media coverage that Kroger is preparing price cuts and facing stiff competition from Walmart, Costco and Aldi reinforces the same story: stronger traffic potential, but likely margin pressure if discounts deepen. Kroger plans price cuts as new CEO looks to regain shoppers
• Negative Sentiment: Investors are likely concerned that a nationwide price-cut strategy could reduce profitability in the near term, especially if Kroger has to absorb higher costs while lowering shelf prices. Why Kroger Stock Dropped Today
• Negative Sentiment: Recent recall headlines involving Kroger-branded garlic cheese croutons and a separate Clean Air Act settlement may add modest reputational and legal overhang, though these look secondary to the pricing narrative. Kroger garlic cheese croutons sold in 17 states recalled for salmonella risk

Analysts Set New Price Targets

Several equities analysts recently weighed in on the company. Telsey Advisory Group raised their price objective on Kroger from $80.00 to $82.00 and gave the company an “outperform” rating in a research note on Thursday, March 5th. Erste Group Bank cut Kroger from a “buy” rating to a “hold” rating in a report on Monday, April 27th. BMO Capital Markets reiterated a “market perform” rating and set a $70.00 target price on shares of Kroger in a report on Thursday, March 5th. Wells Fargo & Company cut Kroger from an “overweight” rating to an “equal weight” rating and lowered their target price for the company from $70.00 to $68.00 in a report on Wednesday, February 25th. Finally, Weiss Ratings reiterated a “hold (c)” rating on shares of Kroger in a report on Friday, March 27th. Eight investment analysts have rated the stock with a Buy rating and eight have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $74.87.

Kroger Stock Up 0.4%

The firm has a fifty day moving average price of $69.56 and a 200-day moving average price of $66.73. The company has a quick ratio of 0.42, a current ratio of 0.80 and a debt-to-equity ratio of 2.66. The firm has a market cap of $41.24 billion, a price-to-earnings ratio of 44.00, a PEG ratio of 1.78 and a beta of 0.46.

Kroger (NYSE:KR) last released its quarterly earnings data on Thursday, March 5th. The company reported $1.28 EPS for the quarter, topping analysts’ consensus estimates of $1.20 by $0.08. The business had revenue of $34.73 billion during the quarter, compared to the consensus estimate of $35.10 billion. Kroger had a return on equity of 41.08% and a net margin of 0.69%.The business’s revenue for the quarter was up 1.2% on a year-over-year basis. During the same period in the prior year, the firm posted $1.14 EPS. Kroger has set its FY 2026 guidance at 5.100-5.300 EPS. As a group, sell-side analysts forecast that The Kroger Co. will post 5.24 EPS for the current year.

Kroger Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Monday, June 1st. Shareholders of record on Friday, May 15th will be given a dividend of $0.35 per share. This represents a $1.40 dividend on an annualized basis and a yield of 2.1%. The ex-dividend date of this dividend is Friday, May 15th. Kroger’s payout ratio is 91.50%.

Institutional Investors Weigh In On Kroger

A number of institutional investors have recently added to or reduced their stakes in the company. Vanguard Group Inc. grew its position in Kroger by 1.1% during the fourth quarter. Vanguard Group Inc. now owns 77,169,425 shares of the company’s stock valued at $4,821,546,000 after acquiring an additional 868,529 shares during the period. Wellington Management Group LLP grew its position in Kroger by 61.1% during the third quarter. Wellington Management Group LLP now owns 33,367,551 shares of the company’s stock valued at $2,249,307,000 after acquiring an additional 12,652,261 shares during the period. State Street Corp grew its position in Kroger by 1.2% during the third quarter. State Street Corp now owns 31,948,112 shares of the company’s stock valued at $2,153,622,000 after acquiring an additional 386,503 shares during the period. GQG Partners LLC grew its position in Kroger by 11.3% during the fourth quarter. GQG Partners LLC now owns 13,398,072 shares of the company’s stock valued at $837,113,000 after acquiring an additional 1,360,946 shares during the period. Finally, Dimensional Fund Advisors LP grew its position in Kroger by 0.4% during the first quarter. Dimensional Fund Advisors LP now owns 12,296,026 shares of the company’s stock valued at $889,878,000 after acquiring an additional 53,625 shares during the period. Hedge funds and other institutional investors own 80.93% of the company’s stock.

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.