Kroger Appoints Ex-Walmart Exec Greg Foran, Shares Jump 7.7%
Kroger has appointed Greg Foran, former Walmart U.S. CEO, replacing Rodney McMullen after an ethics-board investigation into his conduct. Shares climbed 7.7% on Thursday, marking the biggest one-day gain since June and driven by coverage of 5.4% short interest and record-high bullish options volume.
1. CEO Transition
Kroger replaced long-time CEO Rodney McMullen with Greg Foran, the former head of Walmart U.S., after a board investigation cited conduct inconsistent with company ethics. Foran’s appointment follows an aggressive search for leadership capable of driving growth across Kroger’s 2,900-store network.
2. Market Reaction
Shares jumped 7.7% on Thursday, the largest one-day gain since June, pushing the stock to its highest level since August and breaching the 200-day moving average that had capped rallies in November and December.
3. Short Covering and Options Activity
Short interest totaled 31.33 million shares, or 5.4% of available float, prompting rapid covering. Meanwhile, a 50-day call/put volume ratio of 4.93 hit a one-year high, with April 65 puts notably active as new positions were sold to open.