KROGER Stock Forecast: The stock tumbled by 5% after the Albertsons merger.

KROGER Stock Forecast: The stock tumbled by 5% after the Albertsons merger.

KROGER Stock Forecast: The outlook is Negative. The stock is a sell.


KROGER Stock Forecast: Price today

KROGER Stock Forecast: Recent Performance

Stock name5 days 1 month YTD
KROGER -5.7%-9.0% -4.5%
NASDAQ -1.6% -5.8%-15.2%

KROGER Stock Forecast: Latest News

Kroger’s major deal with Albertsons Companies: Kroger has recently announced a deal which is valued at $24.6 billion, where it would acquire Albertsons companies at $34.10 per share, and in total it would comprise 5k stores. Kroger also announced that there will be a stand-alone company created which is Albertsons spinoff from

Alberstsons which comprises 100 – 375 stores. The payment includes a $600 million reverse termination fee and the deal is also not expected to close anytime soon and would be completed until early 2024. It is also expected that the near-term costs would go higher. This deal made investors skeptical which led the share price to go down by 5% in the past 5 days.

U.S. Senate antitrust panel plans for a hearing: It is expected soon that the U.S Senate antitrust panel would plan for a hearing on this major acquisition deal and they expressed “serious concerns” regarding this deal. Federal Trade Commission and other regulators are also expected to review the deal because this can be considered one of the biggest deals which involve some largest grocery store chains.

KROGER Stock Forecast: Latest Video

YouTube video

KROGER Stock Forecast: Price target

Overall Average$52.6
Jefferies Financial Group$45
UBS Group$57
Credit Suisse Group$55
Oppenheimer$51
MKM Partners$55
Deutsche Bank$53

Guggenheim analyst John Heinbockel lowered the rating from “Buy” to “Neutral” expecting the next 18 months to be chaotic.

KROGER Stock Forecast: Q2 Results

KROGER released its Quarter 2 (which ended on August 2022) in September 2022.

The company’s total revenues were declared as $34.6 billion, up 9.3% YoY.

Its gross profit was $7.2 billion, up 7% YoY.

Operating expenses were increased by 7.2% Y-o-Y and were reported as $6.3 billion.

The company’s operating income was increased by 6% over a year and was reported as $975 million.

Its net income was $731 million, up 56.5% YoY.

Revenue per share was $48.4, up 13.9% YoY.

Diluted earnings per share (EPS) were declared as $1, up 63.9% YoY.

Its EBIT was declared as $975 million, up 6% YoY.

KROGER Stock Price Prediction: Short-Term Outlook

Trend
OverallNegative
1. Market’s WisdomNegative
1a. Market DataLower
VolumeLower
Performance vs NASDAQ (Last 5 days)Lower
1b. TechnicalSell
2. Crowd’s WisdomNeutral
2aGoogle SearchLower
2b. Social Media SentimentHigher

KROGER Stock Forecast: Latest Tweet

$KR -5% YTD -operates supermarkets and multi-department stores -merger agreement w/ $ACI for $24.6B -this one’s below both the 50 and 200-day -green inside candlestick on the daily though

KROGER Stock Forecast: Conclusion

The recent merger has created a lot of excitement and chaos in the industry. The deal would be a hit if it is finalized but there are many hurdles such as political issues, regulatory concerns and, high prices in its way and it is also not expected to be closed soon. As commented by Wedbush analysts, it becomes as complicated as it proceeds further, but in the long-term, this deal can be highly profitable once finalized, but in the short-term, there are many considerable risks to ponder on.

Writer

Bommu Vaishnavi

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Note: Crowdwisdom360 collates Predictions and data from all over the net and has no in-house view on the likely trends in the Stocks or Crypto Coins. Please consult a registered investment advisor to guide you on your financial decisions.


Vineet

Vineet

Vineet Agarwal is a trained technical analyst and avid stock trader. A graduate from a Top Technology Institute, Vineet carries out extensive technical and secondary research for this authored stock forecasts.