Per CapitolTrades.com, Mitch McConnell, an American politician and the Senate minority leader from Kentucky, has recently bought shares of Wells Fargo (NYSE:WFC) and Kroger Company (NYSE:KR). According to the data, McConnell bought Kroger stock at the end of November and Wells Fargo stock at the beginning of this month. Each transaction had a size range of 1-15K.
Using TipRanks’ data, let’s check what’s on the horizon for these companies.
What’s the Prediction for Kroger Stock?
Kroger operates a supermarket chain and multi-department stores. It has managed to attract customers through its own brands and promotions. Moreover, its value proposition drives traffic. Also, the accretion from the acquisition of Albertsons is positive.
However, inflationary headwinds on margins and increased competition pose challenges. Jefferies analyst Robert Dickerson, who has a Hold recommendation on the stock, expects Kroger’s top-line growth to decelerate in 2023. Moreover, the analyst sees risks to its fuel margins and fixed cost leverage. Further, the analyst expects competitive activities to increase in 2023, while costs will likely remain high.
Including Dickerson, seven analysts have rated Kroger stock a Hold. Meanwhile, it has received four Buys and one Sell recommendation in the past three months. Based on these recommendations, KR stock sports a Hold consensus rating. Further, analysts’ average price target of $51.45 implies 15.31% upside potential.
Our data shows insiders sold KR stock worth $2.2M last quarter. Meanwhile, hedge funds decreased their holdings in KR stock by selling 951.3K shares. Overall, Kroger stock has a Neutral Smart Score of five.
Is Wells Fargo Stock Predicted to Go Up?
The rising interest rates, focus on improving operating efficiencies, and investments in the digital platform support the financials of Wells Fargo. However, litigation and regulatory issues continue to hurt its operating profit and stock price.
In Q3, WFC’s profit took a hit due to the $2 billion charge related to litigation and regulatory matters. Meanwhile, Wells Fargo recently reached an agreement with the Consumer Financial Protection Bureau to resolve several legacy matters. The financial services giant expects this to result in an incremental cost of $3.5 billion in Q4.
BTIG analyst Isaac Boltansky sees the settlement as a positive step that would resolve its legacy issues. Meanwhile, on TipRanks, WFC stock commands a Moderate Buy consensus rating based on nine Buy and five Hold recommendations. Further, analysts’ average price target of $52.08 implies 26.01% upside potential.
Our data shows that hedge funds sold 1.1M WFC stock last quarter. Meanwhile, it has a Neutral Smart Score of five.
Bottom Line
It might be advantageous for retail investors to closely monitor politicians’ trading. Meanwhile, investors can leverage TipRanks’ Experts Center to make informed investment decisions. As for KR and WFC, both of these stocks have a Smart Score of five, implying that these stocks could move in line with the broader market averages.
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