Insider Decision: Yael Cosset Exercises Options At Kroger For $3.12M

Disclosed in a recent SEC filing on June 24, Cosset, Executive Vice President at Kroger KR, made a noteworthy transaction involving the exercise of company stock options.

What Happened: Disclosed in a Form 4 filing on Tuesday with the U.S. Securities and Exchange Commission, Cosset, Executive Vice President at Kroger, executed a strategic derivative sale. This involved exercising stock options for 71,224 shares of KR, resulting in a transaction value of $3,116,406.

Kroger shares are trading, exhibiting down of 1.52% and priced at $72.88 during Tuesday's morning. This values Cosset's 71,224 shares at $3,116,406.

All You Need to Know About Kroger

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.

Kroger's Financial Performance

Revenue Growth: Kroger's revenue growth over a period of 3 months has been noteworthy. As of 30 April, 2025, the company achieved a revenue growth rate of approximately 31.51%. This indicates a substantial increase in the company's top-line earnings. When compared to others in the Consumer Staples sector, the company excelled with a growth rate higher than the average among peers.

Navigating Financial Profits:

• Gross Margin: The company faces challenges with a low gross margin of 23.42%, suggesting potential difficulties in cost control and profitability compared to its peers.

• Earnings per Share (EPS): Kroger's EPS is significantly higher than the industry average. The company demonstrates a robust bottom-line performance with a current EPS of 1.3.

Debt Management: With a high debt-to-equity ratio of 2.83, Kroger faces challenges in effectively managing its debt levels, indicating potential financial strain.

In-Depth Valuation Examination:

• Price to Earnings (P/E) Ratio: Kroger's P/E ratio of 20.16 is below the industry average, suggesting the stock may be undervalued.

• Price to Sales (P/S) Ratio: The P/S ratio of 0.35 is lower than the industry average, implying a discounted valuation for Kroger's stock in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company's EV/EBITDA ratio of 8.86 trails industry averages, indicating a potential disparity in market valuation that could be advantageous for investors.

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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Why Insider Transactions Are Key in Investment Decisions

Considering insider transactions is valuable, but it's crucial to evaluate them in conjunction with other investment factors.

In the context of 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 outlined by Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are obligated to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.

Despite insider sells not always signaling a bearish sentiment, they can be driven by various factors.

Deciphering Transaction Codes in Insider Filings

Delving into transactions, investors typically prioritize those unfolding in the open market, as precisely outlined in Table I of the Form 4 filing. A P in Box 3 indicates 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.