A large exercise of company stock options by Timothy A Massa, Executive Vice President at Kroger KR was disclosed in a new SEC filing on April 23, as part of an insider exercise.
What Happened: In an insider options sale disclosed in a Form 4 filing on Wednesday with the U.S. Securities and Exchange Commission, Massa, Executive Vice President at Kroger, exercised stock options for 22,565 shares of KR. The transaction value amounted to $1,094,628.
The Thursday morning update indicates Kroger shares down by 0.79%, currently priced at $71.43. At this value, Massa’s 22,565 shares are worth $1,094,628.
About Kroger
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.
Key Indicators: Kroger’s Financial Health
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. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Consumer Staples sector.
Exploring Profitability:
-
Gross Margin: The company shows a low gross margin of 23.09%, indicating concerns regarding cost management and overall profitability relative to its industry counterparts.
-
Earnings per Share (EPS): Kroger’s EPS is notably higher than the industry average. The company achieved a positive bottom-line trend 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.
Understanding Financial Valuation:
-
Price to Earnings (P/E) Ratio: Kroger’s P/E ratio of 19.62 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): At 8.82, Kroger’s EV/EBITDA ratio reflects a below-par valuation compared to industry averages signalling undervaluation
Market Capitalization Analysis: The company’s market capitalization is above the industry average, indicating that it is relatively larger in size compared to peers. This may suggest a higher level of investor confidence and market recognition.
Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.
Exploring the Significance of Insider Trading
Insider transactions serve as a piece of the puzzle in investment decisions, rather than the entire picture.
Considering the legal perspective, an “insider” is defined as any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities, according to Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.
Pointing towards optimism, a company insider’s new purchase signals their positive anticipation for the stock to rise.
Nevertheless, insider sells may not necessarily indicate a bearish view and can be influenced by various factors.
The Insider’s Guide to Important 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.
Insider Buying Alert: Profit from C-Suite Moves
Benzinga Edge reveals every insider trade in real-time. Don’t miss the next big stock move driven by insider confidence. Unlock this ultimate sentiment indicator now. Click here for access.
This article was generated by Benzinga’s automated content engine and reviewed by an editor.
Market News and Data brought to you by Benzinga APIs
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
