Options Exercise: Yael Cosset At Kroger Realizes $1.34M

A substantial insider activity was disclosed on April 24, as Cosset, Executive Vice President at Kroger KR, reported the exercise of a large sell of company stock options.

What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Thursday revealed that Cosset, Executive Vice President at Kroger in the Consumer Staples sector, exercised stock options for 30,000 shares of KR stock. The exercise price of the options was $26.7 per share.

Kroger shares are trading down 0.68% at $71.51 at the time of this writing on Thursday morning. Since the current price is $71.51, this makes Cosset's 30,000 shares worth $1,344,472.

Get to Know Kroger Better

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.

Unraveling the Financial Story of Kroger

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.

Navigating Financial Profits:

• 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 outshines the industry average, indicating a strong bottom-line trend 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.

Financial Valuation:

• Price to Earnings (P/E) Ratio: The P/E ratio of 19.62 is lower than the industry average, implying a discounted valuation for Kroger's stock.

• Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 0.35, the stock presents an attractive valuation, potentially signaling a buying opportunity for investors interested in sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio lower than industry benchmarks at 8.82, Kroger presents an attractive value opportunity.

Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.

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The Relevance of Insider Transactions

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.

Understanding Crucial Transaction Codes

Navigating through the landscape of transactions, investors often prioritize those unfolding in the open market, precisely 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.