Gabriel Arreaga Takes Money Off The Table, Sells $995K In Kroger Stock

Gabriel Arreaga, Executive Vice President at Kroger KR, reported an insider sell on April 22, according to a new SEC filing.

What Happened: Arreaga’s recent Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday unveiled the sale of 13,867 shares of Kroger. The total transaction value is $995,865.

In the Wednesday’s morning session, Kroger‘s shares are currently trading at $72.35, experiencing a down of 0.86%.

Delving into Kroger’s Background

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 Milestones: Kroger’s Journey

Negative Revenue Trend: Examining Kroger’s financials over 3 months reveals challenges. As of 31 January, 2025, the company experienced a decline of approximately -7.44% in revenue growth, reflecting a decrease in top-line earnings. When compared to others in the Consumer Staples sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Analyzing Profitability Metrics:

• Gross Margin: With a low gross margin of 23.09%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry peers.

• Earnings per Share (EPS): Kroger’s EPS is significantly higher than the industry average. The company demonstrates a robust bottom-line performance 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.

Market Valuation:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 19.89 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: The current P/S ratio of 0.36 is below industry norms, suggesting potential undervaluation and presenting an investment opportunity for those considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company’s EV/EBITDA ratio 8.9 is below the industry average, indicating that it may be relatively undervalued compared to peers.

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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Why Insider Transactions Are Important

Investors should view insider transactions as part of a multifaceted analysis and not rely solely on them for decision-making.

When discussing legal matters, the term “insider” refers to any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

A new purchase by a company insider is a indication that they anticipate the stock will rise.

On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

The Insider’s Guide to Important Transaction Codes

In the domain of transactions, investors frequently turn their focus to those taking place in the open market, as meticulously outlined in Table I of the Form 4 filing. A P in Box 3 indicates 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.