The Kroger Co. (KR) Looking Forward To Another Wild Ride

By watching the trading activity of corporate insiders, it will become easier to get a sense of The Kroger Co. (NYSE:KR)’s prospects. The earliest insider trade took place on 01/02/2019. Beyer Robert D parted with a total of 50 thousand shares of company at average share price of $27.39. The total for the sales was set at $1.37 million. After this transaction, the Director account balance stood at 206.8 thousand shares. The stock grew 3.8 percent since that insider sale. On 12/21/2018, Hjelm Christopher T, Executive Vice President, sold 18.56 thousand shares at a price per share of $28.25. This removed 524.43 thousand shares from the insider’s fortune and the stock saw a 0.64 percent rally in value since the news became public. This transaction left 262.73 thousand shares in the Executive Vice President account. On 12/18/2018, Executive Vice President Schlotman J Michael performed a sale transaction worth $592.96 thousand. This sale at $28.86 each has eliminated 20.55 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded -1.49 percent decrease since the transaction was reported. The insider now is left with 282.45 thousand shares remaining in the account. Donnelly Michael Joseph, who performs the Executive VP and COO job, sold 27.4 thousand shares for $811.04 thousand. The disposal occurred on 12/13/2018 was priced at $29.6 per share. The share price plunged -3.95 percent since the reporting date. Donnelly Michael Joseph now left with a stake of 287.73 thousand KR stock worth $8.18 million after the insider selling.

The Kroger Co. (KR) is expected to jump by 9.64 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $37-month high price target. This represents a whopping 30.14 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $30, which represents a return potential of 5.52 percent when compared to the closing price of the stock of $28.43 on Friday, January 11. The lowest price target for the stock is $24 — slightly more than -15.58 percent from KR’s current share price.

The shares are currently floating around the first support level of $28.19. Below this, the next support is placed in the zone of $27.95. Till the time, the KR stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 48.86 on daily chart, which may remain a cause for concern. If the price breaks below $27.95 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $28.7 mark may result into a pull-back move towards $28.98 level.

KR shares dropped -0.05 points or -0.18 percent on Friday to $28.43 with a light trade volume of 4.415 million shares. After opening the session at $28.34, the shares went as high as $28.735 and as low as $28.22, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $22.7 billion and now has 799.15 million shares outstanding. The Kroger Co. (KR) stock has lost -2.77 percent of market value in 21 trading days.

KR stock has a trailing 3-year beta of 0.77, offering the possibility of a lower rate of return, but also posing less risk. The portion of a company’s profit allocated to each outstanding share of common stock was $3.3 a share in the trailing twelve months. The stock’s value has surged 3.38 percent year to date (YTD) against a rise of 1.57 percent in 12 month’s time. The company’s shares still trade -13.16 percent away from its 1-year high of $32.74 and 24.42 percent up from 52-week low of $22.85. The average consensus rating on the company is 2.5, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.

Shares of The Kroger Co. (KR) are trading at a P/E ratio of 12.49 times earnings reported for the past 12 months. The industry KR operates in has an average P/E of 37.99. Its P/E ratio went as low as 10.09X and as high as 19.86 over the 5-year span. Further, it is sporting a 0.18 on the Price-to-Sales ratio. Compare this with the industry average P/S of 1.1. 21.7 percent is the gross profit margin for The Kroger Co. and operating margin sits at 3.3 percent. Along with this, the net profit margin is 3 percent.

Analysts are forecasting revenue to suffer decline of -8 percent to $28.6B in the next fiscal quarter, while earnings are seen soaring by nearly -20.63 percent to $0.5 per share. History has shown that shares in The Kroger Co. have gone up on 21 different earnings reaction days and are predicted to add 0.04 percent when the company reports upcoming earnings. In last reported earnings results, it earned $0.48 per share, better than the $0.43, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $27.7B, in line with the $27.7B analysts expected. Earnings are estimated to increase by -47.6 percent this year, 5.75 percent next year and continue to increase by 5.51 percent annually for the next 5 years.