Kroger Sees Unusually High Options Volume (NYSE:KR)

The Kroger Co. (NYSE:KR – Get Free Report) was the target of unusually large options trading activity on Friday. Stock investors acquired 36,862 call options on the stock. This represents an increase of approximately 145% compared to the average daily volume of 15,056 call options.

Kroger Stock Performance

KR stock traded up $0.80 on Friday, hitting $66.73. The company’s stock had a trading volume of 5,608,496 shares, compared to its average volume of 6,996,697. The firm has a 50 day moving average of $60.63 and a two-hundred day moving average of $63.59. Kroger has a 1 year low of $54.15 and a 1 year high of $76.58. The stock has a market cap of $39.41 billion, a price-to-earnings ratio of 36.27, a price-to-earnings-growth ratio of 1.83 and a beta of 0.36. The company has a current ratio of 0.70, a quick ratio of 0.31 and a debt-to-equity ratio of 2.59.

Kroger (NYSE:KR – Get Free Report) last issued its quarterly earnings data on Friday, September 11th. The company reported $1.09 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.05 by $0.04. Kroger had a net margin of 0.73% and a return on equity of 49.90%. The company had revenue of $34.62 billion for the quarter, compared to the consensus estimate of $34.64 billion. During the same period last year, the firm posted $1.04 EPS. Kroger’s revenue for the quarter was up 2.0% on a year-over-year basis. Kroger has set its FY 2026 guidance at 5.100-5.300 EPS. Equities analysts predict that Kroger will post 5.20 EPS for the current fiscal year.

Kroger Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, December 1st. Stockholders of record on Monday, November 16th will be paid a dividend of $0.39 per share. The ex-dividend date is Monday, November 16th. This represents a $1.56 annualized dividend and a dividend yield of 2.3%. Kroger’s dividend payout ratio is 84.78%.

Insider Buying and Selling at Kroger

In other news, EVP Mary Adcock sold 72,901 shares of the company’s stock in a transaction on Friday, September 18th. The shares were sold at an average price of $60.70, for a total value of $4,425,090.70. Following the completion of the transaction, the executive vice president owned 175,233 shares in the company, valued at approximately $10,636,643.10. This represents a 29.38% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Corporate insiders own 0.41% of the company’s stock.

Hedge Funds Weigh In On Kroger

Institutional investors have recently added to or reduced their stakes in the stock. BlackRock Inc. purchased a new position in shares of Kroger in the 2nd quarter valued at approximately $3,016,956,000. Legal & General Group Plc purchased a new stake in shares of Kroger during the second quarter worth approximately $284,501,000. Bank of New York Mellon Corp acquired a new stake in shares of Kroger during the second quarter worth $195,234,000. Nykredit A S purchased a new position in Kroger in the 2nd quarter valued at $157,533,000. Finally, Deutsche Bank AG purchased a new position in Kroger in the 2nd quarter valued at $119,723,000. Institutional investors and hedge funds own 80.93% of the company’s stock.

Key Kroger News

Here are the key news stories impacting Kroger this week:

  • Positive Sentiment: Kroger plans to invest approximately $5 billion through 2029 to lower everyday prices and simplify promotions. Management also expects e-commerce to eventually represent about 30% of sales, potentially strengthening customer traffic and digital growth. Kroger Says It Will Spend $5 Billion Through 2029 Lowering Prices
  • Positive Sentiment: The company is accelerating direct sourcing to improve cost visibility and control, which could support margins over time despite the near-term expense of lower prices. Kroger Accelerates Direct Sourcing Efforts
  • Positive Sentiment: Unusually heavy call-option activity indicates increased bullish speculative interest: 36,862 calls traded, compared with typical volume of about 15,056. This is a sentiment indicator rather than a change to Kroger’s fundamentals.
  • Neutral Sentiment: Kroger agreed to acquire Giant Eagle in a proposed $1.65 billion cash-and-stock transaction. Combining loyalty programs, pharmacy records and digital platforms could create data and operating synergies, but privacy concerns surrounding purchasing, behavioral and location data may increase regulatory and reputational risk. Kroger Just Put $1.65 Billion Behind a Data Privacy Test
  • Negative Sentiment: Kroger and Albertsons are concluding witness testimony in Delaware litigation over their failed merger. The case could result in additional costs or damages and keeps scrutiny on Kroger’s prior consolidation strategy. Albertsons and Kroger Fighting in Court Over Failed Merger
  • Negative Sentiment: Albertsons is promoting a lower-cost annual membership program, potentially intensifying competition for value-conscious grocery shoppers alongside Walmart and Amazon. Albertsons Has a New Advantage for Grocery Shoppers

Wall Street Analysts Forecast Growth

A number of brokerages recently weighed in on KR. Evercore set a $70.00 price target on shares of Kroger in a research report on Monday, September 14th. Citigroup reaffirmed a “neutral” rating and set a $57.00 price objective (down from $61.00) on shares of Kroger in a report on Tuesday, September 1st. Guggenheim reiterated a “buy” rating and set a $68.00 target price (up from $66.00) on shares of Kroger in a research report on Wednesday, October 21st. Melius Research set a $80.00 target price on Kroger and gave the company a “buy” rating in a report on Tuesday, September 29th. Finally, Deutsche Bank Aktiengesellschaft reissued a “buy” rating and issued a $70.00 target price on shares of Kroger in a report on Wednesday, October 21st. Twelve research analysts have rated the stock with a Buy rating and nine have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $70.35.

Read Our Latest Report on Kroger

About Kroger

(Get Free Report)

The Kroger Co is a U.S. food and grocery retailer headquartered in Cincinnati, Ohio. Founded by Bernard Kroger in 1883, the company operates supermarkets under banners that include Kroger, Ralphs, Fred Meyer, King Soopers, Fry’s, Harris Teeter and Smith’s, among others.

Kroger’s business includes the sale of fresh food, groceries, general merchandise, household products and health and beauty items. Many of its stores also provide pharmacy services and fuel centers. The company offers digital shopping, pickup and delivery services, loyalty programs and a range of private-label products, including Simple Truth, Private Selection and Kroger-branded products.

Kroger primarily serves customers across the United States, with stores concentrated in the Midwest, South, West and parts of the Mid-Atlantic region.

Further Reading

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