On September 12, 2023, Senior Vice President Timothy Massa sold 23,000 shares of The Kroger Co (KR, Financial). This move comes amidst a year where the insider has sold a total of 46,000 shares and made no purchases.
Timothy Massa is a key figure at The Kroger Co, serving as the Senior Vice President. His role and actions within the company are closely watched by investors and analysts alike, as they can provide valuable insights into the company's operations and future direction.
The Kroger Co, with a market cap of $32.64 billion, is one of the world's largest retailers. The company operates supermarkets, multi-department stores, marketplace stores, and price impact warehouses. Its combination of grocery and general merchandise retail offerings distinguishes it within the industry.
The insider's recent sell-off raises questions about the company's current valuation and future prospects. Let's delve into the details.
The above image shows the insider trading trend for The Kroger Co. Over the past year, there have been 13 insider sells and no insider buys. This could be a potential red flag for investors, as it may indicate that insiders believe the company's stock is overvalued or that the company may face challenges in the future.
On the day of the insider's recent sell, The Kroger Co's shares were trading at $45.46, giving the company a price-earnings ratio of 20.26. This is higher than both the industry median of 16.47 and the company's historical median price-earnings ratio, suggesting that the stock may be overvalued.
The above image shows the GF Value of The Kroger Co. With a price of $45.46 and a GuruFocus Value of $47.29, the company has a price-to-GF-Value ratio of 0.96. This indicates that the stock is fairly valued based on its GF Value. The GF Value is an intrinsic value estimate developed by GuruFocus, calculated based on historical multiples, a GuruFocus adjustment factor, and future estimates of business performance.
In conclusion, the recent sell-off by the insider, coupled with the company's high price-earnings ratio and the lack of insider buys over the past year, may suggest that the stock is overvalued. However, the company's price-to-GF-Value ratio indicates that the stock is fairly valued. Investors should carefully consider these factors before making investment decisions.
