Senior Vice President At Kroger Exercises Options Worth $444K

In a new SEC filing on March 24, it was revealed that Kimball, Senior Vice President at Kroger KR, executed a significant exercise of company stock options.

What Happened: A notable Form 4 filing on Monday with the U.S. Securities and Exchange Commission revealed that Kimball, Senior Vice President at Kroger, exercised stock options for 11,000 shares of KR, resulting in a transaction value of $444,290.

The latest update on Monday morning shows Kroger shares down by 0.4%, trading at $65.14. At this price, Kimball's 11,000 shares are worth $444,290.

Unveiling the Story Behind 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 firm also operates fuel stations and pharmacies at 60% and 80% of its locations, respectively.

A Deep Dive into Kroger's Financials

Revenue Growth: Kroger's remarkable performance in 3 months is evident. As of 31 January, 2025, the company achieved an impressive revenue growth rate of 2.0%. This signifies a substantial increase in the company's 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.

Evaluating Earnings Performance:

• Gross Margin: The company shows a low gross margin of 23.09%, suggesting potential challenges in cost control and profitability compared to its peers.

• Earnings per Share (EPS): Kroger's EPS reflects a decline, falling below the industry average with a current EPS of 0.91.

Debt Management: Kroger's debt-to-equity ratio stands notably higher than the industry average, reaching 3.03. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

Valuation Overview:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 17.82 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: The current P/S ratio of 0.32 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): Kroger's EV/EBITDA ratio at 8.22 suggests potential undervaluation, falling below industry averages.

Market Capitalization Analysis: With a profound presence, the company's market capitalization is above industry averages. This reflects substantial size and strong market recognition.

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Why Insider Activity Matters in Finance

Insider transactions are not the sole determinant of investment choices, but they are a factor worth considering.

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.

Deciphering Transaction Codes in Insider Filings

Surveying the realm of stock transactions, investors often give prominence to those unfolding in the open market, systematically detailed in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C denotes 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.