Finance

Analyzing the Insider Data for The Kroger Co. (KR)

Recent insider trends for The Kroger Co. (NYSE:KR) have caught the attention of investors. Patters in insider activity can help analysts formulate an outlook for a stock. In the case of KR, the data has a lot to say about how the stock might perform going forward.

Institutions own 80.24% of The Kroger Co. (KR)’s shares. The total value of these holdings, in millions, is $14,832. Among active positions in the latest quarter, 405 holders increased their positions by a total of 101.68 million shares, 386 holders decreased the positions by a total of 106.79 million shares, and 73 holders held their positions. This works out to a net decrease in ownership of 5.11 million shares, and suggests that institutions are feeling bearish about the stock.

Among new and sold out positions, 107 holders initiated new positions by a total of 18.72 million shares and 117 holders exited their positions by a total of 17.72 million shares. This nets out to an increase of 1 million shares and is a bullish sign for KR.

In the last three months, insiders executed a total of 5 trades. 5 were sells. Insider ownership decreased by a total of 8800 shares, which suggests that KR’s key executives are feeling less optimistic about the outlook for the stock. The data from the past twelve months tells a different story: insiders executed 47 buys and 106 sells, and ownership increased by a net of 448162 shares.



Comparing the number of shares sold short over time is a method analysts often use to get a reading on investor sentiment. The Kroger Co. (NYSE:KR)’s short interest is 79.31 million shares, or % of the float. This represents an increase of 6% in the number of shares being shorted compared to the previous reading, and implies that investors felt more pessimistic about the stock during the past two weeks.

Supplementing insider data with technical indicators can help an investor form a more complete view on the outlook for a stock. A composite of 13 technical indicators that includes measures such as moving averages and momentum oscillators suggests that KR is a Weak sell, which implies that KR is expected to underperform the market based on prior trading patterns.

Conclusion




Institutional ownership trends suggest that the stock is cheap and the insider trading data indicates that insiders are bearish. Technical indicators (also) suggest that The Kroger Co. (NYSE:KR) is overvalued.

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