The Kroger Co. (KR): Here Are Some Research Recommendations

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The Kroger Co. (NYSE:KR) finished Thursday with an addition of $0.23 to close at $45.50, an upside of 0.51 percent. An average of 7,185,740 shares of common stock have been traded in the last five days. There was a fall of -$2.38 in the past week, and it reached a new high 21 times over the past 12 months. The last 20 days have seen an average of 6,555,825 shares traded, while the 50-day average volume stands at 5,562,230.

KR stock has decreased by -8.27% in the last month. The company shares reached their 1-month lowest point of $45.01 on 09/22/22. With the stock rallying to its 52-week high on 04/08/22, shares of the company touched a low of $38.22 and a high of $62.78 in 52 weeks. It has reached a new high 11 times so far this year and achieved 0.53% or $0.24 in price. In spite of this, the price is down -27.52% from the 52-week high.


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Insider Transactions

155 days have passed since The Kroger Co. (KR) last reported insider trading activity. Massa Timothy A, who is Senior Vice President, most recently acquired $50,283 shares at $58.03 per share on Apr 21. In this transaction, the insider spent $2,917,774. Senior Vice President and CIO, COSSET YAEL, disposed of 34,812 shares at a price of $59.50 on Apr 07. The insider now owns more than $2,071,244 worth of shares. Prior to that, Senior Vice President Aitken Stuart went on to Sale 44,593 shares at $59.62 each on Apr 07. An amount of $2,658,456 was transacted.

Valuation Metrics

The Kroger Co. (KR) has a trailing price-to-earnings (P/E) ratio of 20.85. The stock’s beta is 0.47. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 0.24, the price-to-book (PB) ratio at 3.49, and the price-to-cash flow ratio at 11.05.

The company has a payout ratio of 35.30%. The company’s most recent quarterly dividend payment was $0.26 a share, without any change from last year. Its latest increase dividend $0.05 reported on Thursday June 23 2022.

Financial Health

The quick ratio of The Kroger Co. for the three months ended April 29 was 0.30, and the current ratio was 0.80, indicating that the company is not able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 1.39 and a total debt to equity ratio of 1.45 for the quarter ending April 29. Its gross profit as reported stood at $30.35 billion compared to revenue of $137.89 billion.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, The Kroger Co.’s return on assets was 3.30%.

Earnings Surprise

In the quarter under review, the net income was down than the previous quarter. The company posted a net income of $731.0 million in the quarter, while revenues were grew 36.11%. The analyst consensus anticipated The Kroger Co.’s latest quarter earnings to come in at $1.3 per share, but it turned out to be $1.45, a 11.50% surprise. For the quarter, EBITDA amounted to $1.78 billion. Shareholders own equity worth $715.81 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at The Kroger Co. (KR) price momentum. RSI 9-day as of the close on 22 September was 32.59%, suggesting the stock is Neutral, with historical volatility in this time frame at 16.67%.

As of today, KR’s price is $46.48 -4.97% or -$2.38 from its 5-day moving average. KR is currently trading -8.38% lower than its 20-day SMA and -15.68% lower than its 100-day SMA. However, the stock’s current price level is -5.11% below the SMA50 and +0.86% above the SMA200.

The stochastic %K and %D were 9.77% and 9.49%, respectively, and the average true range (ATR) was 1.41. With the 14-day stochastic at 7.01% and the average true range at 1.36, the RSI (14) stands at 37.51%. The stock has reached -1.79 on the 9-day MACD Oscillator while the 14-day reading was at -2.40.

Analyst Ratings

Exane BNP Paribas upgraded The Kroger Co. (NYSE: KR) to a a Neutral rating in its most recent analyst report. Previously, the stock was rated as an Underperform. The consensus rating for The Kroger Co. (KR) among analysts is Hold. According to current brokerage recommendations, 4 brokerage firms advise that investors sell KR, while 14 suggest investors hold. There are 1 analyst who rate the stock as underweight. The stock is rated overweight by 0 analysts, while 7 others rate it as a “buy”.

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