Technicals Say The Kroger Co. (KR) Is Worth Holding

As of Friday close, The Kroger Co.’s (NYSE:KR) stock was down -$0.83, moving down -1.53 percent to $53.39. The average number of shares traded per day over the past five days has been 5,929,480 shares. 3 times new highs have been achieved over the past 5 days, with a -$0.46 fall in that time frame. In the last twenty days, the average volume was 5,981,905, while in the previous 50 days, it was 7,200,648.

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Since last month, KR stock retreated -8.48%. Shares of the company fell to $53.14 on 05/09/22, the lowest level in the past month. A 52-week high of $62.78 was reached on 04/08/22 after having rallying from a 52-week low of $35.91. Since the beginning of this year, KR’s stock price has risen by 17.96% or $8.13, and marked a new high 11 times. However, the stock has declined by -14.96% since its 52-week high.

The Kroger Co. (KR) last reported insider trading activity 23 days ago on Apr 21. Massa Timothy A, the Senior Vice President of the company, disposed of 50,283 shares for $58.03 on Apr 21. It resulted in a $2,917,774 divestment by the insider. COSSET YAEL sold 34,812 shares at an average price of $59.50 on Apr 07. The insider now owns 140,477 shares following the transaction. On Apr 07, Senior Vice President Aitken Stuart sold 44,593 shares at $59.62 apiece. The transaction was valued at $2,658,456.

Valuation Metrics

Right now, The Kroger Co. (KR) has a P/E ratio of about 24.47. The stock’s beta is 0.49. Besides these, the trailing price-to-sales (P/S) ratio of 0.28, the price-to-book (PB) ratio of 4.15, and the price-to-cash flow ratio of 12.89 may also be considered.

The latest dividend of $0.21 per share was paid out, remained unchanged from last year’s $0.21. On Friday June 25 2021, a $0.03 dividend increase was announced.

Financial Health

In the three months ended October 30, The Kroger Co.’s quick ratio stood at 0.30, while its current ratio was 0.70, showing that the company is not able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending October 30 was 1.36, and the total debt-to-equity ratio was 1.41. On the profitability front, the trailing twelve-month gross margin is 22.00% percent. In the year ended October 30, operating margins totaled 2.50%. Based on annual data, KR earned $30.35 billion in gross profit and brought in $137.89 billion in revenue.

A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was 13.60%. Return on equity (ROE) for the past 12 months was 17.50%.

According to the earnings report, the company had a higher net income in the recent quarter than it did in the previous quarter. KR’s revenue fell -0.62% to $31.86 billion during the quarter, while net income inched up to $33.05 billion. While analysts expected The Kroger Co. to report $0.66 quarterly earnings, the actual figure was $0.78 per share, beating the consensus estimate by 18.20%. During the quarter, the company generated $1.76 billion in EBITDA. The liabilities of The Kroger Co. were 39.66 billion at the end of its most recent quarter ended October 30, and its total debt was $20.71 billion. The value of shareholders’ equity is $723.31 million.

Technical Picture

This quick technical analysis looks at The Kroger Co.’s (KR) price momentum. With a historical volatility rate of 27.93%, the RSI 9-day stood at 34.64% on 13 May.

With respect to its five-day moving average, the current The Kroger Co. price is down by -0.85% percent or -$0.46. At present, KR shares trade -8.45% below its 20-day simple moving average and +17.31% percent above its 100-day simple moving average. However, the stock is currently trading approximately -3.10% below its SMA50 and +31.11% above its SMA200.

Stochastic coefficient K was 17.87% and Stochastic coefficient D was 24.47%, while ATR was 1.59. Given the Stochastic reading of 6.87% for the 14-day period, the RSI (14) reading has been calculated as 38.95%. As of today, the MACD Oscillator reading stands at -0.49, while the 14-day reading stands at -0.64.

Analyst Ratings

Exane BNP Paribas upgraded its rating on The Kroger Co. (NYSE: KR) to a Neutral in a note to investors on April 22, 2022. The analysts firm previously had an Underperform rating on the stock.The Kroger Co. (KR) has been rated Hold by analysts. According to 4 brokerage firms, KR is a sell, and 12 firms recommend it is a Hold. There are 2 analysts who say the stock is underweight. A total of 0 analysts rate The Kroger Co. stock as buy, with 6 recommending it as overweight.


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