Kroger (NYSE:KR) Shares Gap Up – Time to Buy?

The Kroger Co. (NYSE:KR)’s stock 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 trading hands.

More 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

KR has been the subject of several recent analyst reports. Morgan Stanley set a $67.00 price objective on shares of Kroger and gave the company an “equal weight” rating in a research note on Thursday, January 15th. Wall Street Zen cut shares of Kroger from a “buy” rating to a “hold” rating in a report on Saturday, December 27th. Barclays reissued a “positive” rating on shares of Kroger in a research note on Monday. Telsey Advisory Group restated an “outperform” rating and set a $80.00 target price on shares of Kroger in a research report on Monday. Finally, Guggenheim reaffirmed a “buy” rating and issued a $78.00 price target on shares of Kroger in a report on Wednesday, November 19th. Eight analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $74.07.

Kroger Stock Performance

The company has a market cap of $44.39 billion, a P/E ratio of 64.95, a price-to-earnings-growth ratio of 1.72 and a beta of 0.62. The company’s fifty day moving average is $63.01 and its 200 day moving average is $66.16. The company has a current ratio of 0.88, a quick ratio of 0.45 and a debt-to-equity ratio of 2.28.

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

Kroger Dividend Announcement

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

Hedge Funds Weigh In On Kroger

Several hedge funds have recently made changes to their positions in KR. Ares Financial Consulting LLC purchased a new position in Kroger during the 4th quarter valued at $25,000. Princeton Global Asset Management LLC increased its position in shares of Kroger by 268.1% during the fourth quarter. Princeton Global Asset Management LLC now owns 416 shares of the company’s stock valued at $26,000 after buying an additional 303 shares during the period. Atlantic Union Bankshares Corp bought a new position in Kroger in the second quarter worth about $28,000. Lloyd Advisory Services LLC. bought a new position in Kroger in the fourth quarter worth about $28,000. Finally, Rossby Financial LCC purchased a new stake in Kroger in the second quarter worth about $29,000. 80.93% of the stock is owned by hedge funds and other 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.