BMO Capital Markets has recently raised Kroger Co (KR) stock to Outperform rating, as announced on June 18, 2024, according to Finviz. Earlier, on April 16, 2024, Wells Fargo had raised the stock from a Equal Weight to Overweight, setting a price target of $65. for KR stock. Exane BNP Paribas also reduced Underperform rating with a price target of $48. Additionally, Telsey Advisory Group reiterated Outperform rating on March 28, 2024, with a target price of $62. Telsey Advisory Group analysts, in their report published on March 8, 2024, also reiterated Outperform rating and set a price target of $55 for Kroger Co’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.
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Kroger Co (KR) Stock Trading Recap
On Friday, Kroger Co (KR) stock saw a decline, ending the day at $52.27 which represents a decrease of $-1.10 or -2.06% from the prior close of $53.37. The stock opened at $53.22 and touched a low of $52.24 during the day, reaching a high of $53.46. The volume of shares traded was 5.93 million exceeding the average volume of 4.90 million.
KR Stock Performance and Moving Averages
In recent trading, Kroger Co (KR) stock price has shown some volatility, fluctuating -0.44% over the last five trades and -3.02% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by -5.79%, and it has gained 0.62% in the previous three months. Currently, KR is trading at -1.33%, -1.33%, and 2.64% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.
As of the latest trading close, KR, a Consumer Defensive sector stock, is trading -10.40% below its 52-week high but remains 24.17% above its 52-week low. The Average True Range (ATR) (14 days) of 1.03 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.
Kroger Co’s Profitability and Valuation Ratios
Kroger Co’s profitability metrics reveal strong financial health. The company currently boasts an operating margin of 3.22% and a profit margin of 1.42%, with a gross margin of -5.79%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.
In terms of valuation, Kroger Co’s market capitalization stands at $37.73 billion. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. The stock’s price-to-earnings (P/E) ratio is 17.81, assessing the company’s valuation relative to its earnings. The forward P/E ratio, which uses projected earnings for the next financial year, is 11.49. Additionally, the Price-to-Sales Ratio is 0.25, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 3.04, comparing the market value to the company’s book value.
Understanding Insider Trading
Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 0.81% of Kroger Co (KR)’s shares, while financial institutions hold 84.92%.
Notable insider trades include Nichols Brian W, Vice President & Controller at Kroger Co (KR), who sold 2000 shares on Jul 19 ’24, at $54.53 each, totaling $0.11 million. On Apr 26 ’24, Foley Todd A, Senior VP & Interim CFO, sold 6616 shares for $55.69 each, amounting to $0.37 million. Additionally, on Apr 25 ’24, Kimball Kenneth C sold 30251 shares at $55.98 each, generating $1.69 million.
