Shares of The Kroger Co. (NYSE:KR) have received a consensus target price of $74.50 from analysts, reflecting a “Moderate Buy” recommendation based on the evaluations of nineteen financial analysts. Among these, nine analysts have rated the stock as a hold, while ten have issued buy recommendations.
In a recent report, Marketbeat Ratings indicated that the average twelve-month target price for Kroger shares is $74.39. This figure underscores the optimism surrounding the company’s performance, even as analysts continue to monitor market conditions.
Recent Analyst Recommendations
Several analysts have provided updated insights into Kroger’s stock. On September 18, 2023, Argus set a target price of $85.00, demonstrating a bullish outlook for the company. Additionally, on November 19, 2023, Guggenheim reaffirmed a “buy” rating with a price target of $78.00.
Roth Capital also made notable moves, upgrading Kroger from a “neutral” rating to a “buy” rating, with a price objective of $75.00 on September 17, 2023. Conversely, JPMorgan Chase & Co. revised their price target down from $75.00 to $73.00, maintaining a “neutral” rating in their report on November 26, 2023. Furthermore, Roth Mkm raised its rating from “neutral” to “buy” with a target increase from $66.00 to $75.00.
Kroger’s Financial Performance
On September 11, 2023, Kroger reported its quarterly earnings, revealing earnings per share (EPS) of $1.04. This figure surpassed analysts’ expectations of $1.00 by $0.04. The company recorded a net margin of 1.86% and a return on equity of 32.62%.
In terms of revenue, Kroger generated $33.94 billion for the quarter, slightly below the consensus estimate of $34.08 billion. This represented a year-over-year revenue increase of 0.1%, compared to $0.93 EPS for the same quarter last year.
Kroger has projected its fiscal year 2025 guidance at $4.70 to $4.80 EPS. Analysts anticipate an EPS of $4.44 for the current fiscal year, reflecting cautious optimism about the company’s growth trajectory.
Dividend Announcement
In a further development, Kroger announced a quarterly dividend of $0.35 per share, scheduled for payment on December 1, 2024. Stockholders on record as of November 14, 2024 will be eligible for this dividend, which translates to an annualized dividend of $1.40 and a yield of 2.1%. Currently, Kroger’s dividend payout ratio stands at 35.53%, indicating a stable return to shareholders.
As a major player in the retail sector, The Kroger Co. operates a diverse range of food and drug retailing formats across the United States, including combination food and drug stores, multi-department stores, and marketplace outlets. The company’s offerings include natural and organic foods, pharmacies, and a variety of general merchandise.
Investors and analysts alike will be closely watching Kroger’s performance in the coming months, particularly as it navigates the changing retail landscape and consumer preferences.
