Insider Activity Update: Todd A Foley Executes Options Exercise, Resulting In $347K At Kroger

In a new SEC filing on April 21, it was revealed that Foley, Senior Vice President at Kroger KR, executed a significant exercise of company stock options.

What Happened: Foley, Senior Vice President at Kroger, made a strategic move by exercising stock options for 9,016 shares of KR as detailed in a Form 4 filing on Monday with the U.S. Securities and Exchange Commission. The transaction value amounted to $347,341.

Kroger shares are currently trading up by 1.6%, with a current price of $73.47 as of Tuesday morning. This brings the total value of Foley’s 9,016 shares to $347,341.

Discovering Kroger: A Closer Look

Kroger is one of the largest grocery retailers in the United States with more than 2,700 stores across a portfolio of over 20 supermarket banners. The company boasts an ingrained presence in US communities, citing that it is a top-two grocer in most of its major market areas. Over one fourth of Kroger’s roughly $110 billion in nonperishable and fresh food sales (about 75% of revenue) stems from its private-label portfolio, of which the company manufactures about 30% of units via its own food production plants. The company also operates fuel stations and pharmacies at 60% and 80% of its locations, respectively.

Financial Insights: Kroger

Revenue Growth: Kroger’s revenue growth over a period of 3 months has faced challenges. As of 31 January, 2025, the company experienced a revenue decline of approximately -7.44%. This indicates a decrease in the company’s top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Consumer Staples sector.

Key Profitability Indicators:

• Gross Margin: The company issues a cost efficiency warning with a low gross margin of 23.09%, indicating potential difficulties in maintaining profitability compared to its peers.

• Earnings per Share (EPS): Kroger’s EPS is a standout, portraying a positive bottom-line trend that exceeds the industry average with a current EPS of 0.91.

Debt Management: Kroger’s debt-to-equity ratio surpasses industry norms, standing at 3.03. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

Navigating Market Valuation:

• Price to Earnings (P/E) Ratio: Kroger’s P/E ratio of 19.7 is below the industry average, suggesting the stock may be undervalued.

• Price to Sales (P/S) Ratio: With a P/S ratio of 0.35 below industry standards, the stock shows potential undervaluation, making it an appealing investment option for those focusing on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio lower than industry averages at 8.85, Kroger could be considered undervalued.

Market Capitalization: Positioned above industry average, the company’s market capitalization underscores its superiority in size, indicative of a strong market presence.

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Unmasking the Significance of Insider Transactions

Insider transactions serve as a piece of the puzzle in investment decisions, rather than the entire picture.

In legal terms, an “insider” refers to any officer, director, or beneficial owner of more than ten percent of a company’s equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.

When a company insider makes a new purchase, that is an indication that they expect the stock to rise.

Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.

Unlocking the Meaning of Transaction Codes

When analyzing transactions, investors tend to focus on those in the open market, detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase,while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Kroger’s Insider Trades.

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This article was generated by Benzinga’s automated content engine and reviewed by an editor.