Kroger Sees Unusually High Options Volume (NYSE:KR)

The Kroger Co. (NYSE:KR) saw some unusual options trading on Friday. Stock investors purchased 28,011 call options on the stock. This represents an increase of approximately 126% compared to the typical daily volume of 12,402 call options.

Kroger Trading Up 1.9%

Shares of Kroger stock traded up $1.13 on Friday, hitting $60.99. The stock had a trading volume of 3,156,616 shares, compared to its average volume of 6,958,934. The stock has a 50 day moving average of $62.65 and a 200 day moving average of $65.77. The firm has a market capitalization of $37.36 billion, a P/E ratio of 35.85, a PEG ratio of 1.59 and a beta of 0.44. Kroger has a twelve month low of $54.15 and a twelve month high of $76.58. The company has a debt-to-equity ratio of 2.43, a quick ratio of 0.39 and a current ratio of 0.79.

Kroger (NYSE:KR) last posted its earnings results on Thursday, June 18th. The company reported $1.58 earnings per share for the quarter, missing analysts’ consensus estimates of $1.59 by ($0.01). Kroger had a return on equity of 44.33% and a net margin of 0.71%.The business had revenue of $46.12 billion for the quarter, compared to the consensus estimate of $45.59 billion. During the same period in the previous year, the firm earned $1.49 earnings per share. The company’s revenue was up 2.2% compared to the same quarter last year. Kroger has set its FY 2026 guidance at 5.100-5.30 EPS. Sell-side analysts expect that Kroger will post 5.21 earnings per share for the current fiscal year.

Kroger Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 1st. Investors of record on Saturday, August 15th will be paid a $0.39 dividend. This is a positive change from Kroger’s previous quarterly dividend of $0.35. This represents a $1.56 annualized dividend and a dividend yield of 2.6%. The ex-dividend date of this dividend is Friday, August 14th. Kroger’s payout ratio is presently 82.35%.

More Kroger News

Here are the key news stories impacting Kroger this week:

• Positive Sentiment: Kroger is making progress on its reported $1.65 billion acquisition of Giant Eagle, a move that could expand its footprint across several states and deepen its market share if regulators approve the transaction. Article Title
• Positive Sentiment: Analysts and local reports suggest the deal could create valuable store-optimization opportunities, including selective divestitures in Columbus, which may ease antitrust concerns and improve Kroger’s competitive position. Article Title
• Positive Sentiment: Kroger is also investing in store upgrades, including expanding wine selections at 147 in-store shops, which supports the company’s ongoing effort to improve traffic and basket size. Article Title
• Neutral Sentiment: Coverage around how Kroger will handle Giant Eagle’s plastic bag ban is adding some uncertainty, but the company has not yet said the policy will change. Article Title
• Negative Sentiment: Separately, Kroger was reported to be walking back its cage-free egg pledge, which could create reputational pressure and raise questions about its sustainability commitments. Article Title

Analysts Set New Price Targets

KR has been the subject of several recent analyst reports. Royal Bank Of Canada restated an “outperform” rating on shares of Kroger in a research report on Monday, June 1st. Erste Group Bank cut shares of Kroger from a “buy” rating to a “hold” rating in a report on Monday, April 27th. Wells Fargo & Company set a $58.00 price target on shares of Kroger in a research note on Monday, June 22nd. Weiss Ratings downgraded shares of Kroger from a “hold (c+)” rating to a “hold (c)” rating in a research note on Thursday, June 18th. Finally, The Goldman Sachs Group reaffirmed a “buy” rating and set a $82.00 target price on shares of Kroger in a research note on Friday, June 19th. Ten analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the stock. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $72.00.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Connor Clark & Lunn Investment Management Ltd. boosted its stake in shares of Kroger by 45.5% in the 3rd quarter. Connor Clark & Lunn Investment Management Ltd. now owns 855,810 shares of the company’s stock valued at $57,690,000 after purchasing an additional 267,434 shares during the last quarter. Te Ahumairangi Investment Management Ltd raised its stake in Kroger by 18.1% during the third quarter. Te Ahumairangi Investment Management Ltd now owns 150,356 shares of the company’s stock worth $10,135,000 after buying an additional 23,027 shares during the last quarter. JCP Investment Management LLC acquired a new position in Kroger in the third quarter valued at $1,773,000. Allstate Corp boosted its position in Kroger by 108.5% during the fourth quarter. Allstate Corp now owns 47,991 shares of the company’s stock valued at $2,998,000 after acquiring an additional 24,976 shares during the last quarter. Finally, Vanguard Group Inc. boosted 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 last quarter. 80.93% of the stock is owned by institutional investors and hedge funds.

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.