Akre Capital Management LLC Sells 607,215 Shares of KKR & Co. Inc. $KKR

Key Points

• Akre Capital Management reduced its KKR stake by 7.0% in the fourth quarter, selling 607,215 shares and leaving it with 8,106,049 shares worth about $1.03 billion. KKR remains Akre’s third-largest holding and makes up 11.3% of its portfolio.
• KKR announced a $500 million share buyback program in May, authorizing repurchases of up to 0.5% of outstanding shares. The company also raised its quarterly dividend slightly to $0.195 per share.
• Analysts remain generally positive, with KKR holding a “Moderate Buy” consensus and an average price target of $134.53, though some firms have recently lowered targets. The stock opened at $96.37 and is well below its 52-week high of $153.87.

Akre Capital Management LLC trimmed its holdings in KKR & Co. Inc. (NYSE:KKR - Free Report) by 7.0% during the fourth quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund owned 8,106,049 shares of the asset manager's stock after selling 607,215 shares during the period. KKR & Co. Inc. accounts for about 11.3% of Akre Capital Management LLC's investment portfolio, making the stock its 3rd largest position. Akre Capital Management LLC owned about 0.91% of KKR & Co. Inc. worth $1,033,359,000 as of its most recent SEC filing.

A number of other large investors have also recently added to or reduced their stakes in KKR. Norges Bank acquired a new stake in KKR & Co. Inc. in the 4th quarter valued at about $1,715,929,000. Strive Asset Management LLC acquired a new stake in KKR & Co. Inc. in the 3rd quarter valued at about $535,907,000. Viking Global Investors LP acquired a new stake in KKR & Co. Inc. in the 3rd quarter valued at about $352,038,000. Close Asset Management Ltd boosted its stake in shares of KKR & Co. Inc. by 4,155.1% during the 3rd quarter. Close Asset Management Ltd now owns 1,515,299 shares of the asset manager's stock worth $196,845,000 after purchasing an additional 1,479,688 shares during the last quarter. Finally, Vanguard Group Inc. boosted its stake in shares of KKR & Co. Inc. by 1.4% during the 4th quarter. Vanguard Group Inc. now owns 60,064,587 shares of the asset manager's stock worth $7,657,034,000 after purchasing an additional 821,739 shares during the last quarter. 76.26% of the stock is owned by institutional investors and hedge funds.

KKR & Co. Inc. Price Performance

KKR opened at $96.37 on Friday. The company's 50 day simple moving average is $97.27 and its 200 day simple moving average is $107.45. The company has a debt-to-equity ratio of 0.70, a quick ratio of 0.08 and a current ratio of 0.08. KKR & Co. Inc. has a 1 year low of $82.67 and a 1 year high of $153.87. The stock has a market capitalization of $86.52 billion, a PE ratio of 32.78, a P/E/G ratio of 0.83 and a beta of 1.79.

KKR & Co. Inc. (NYSE:KKR - Get Free Report) last released its earnings results on Friday, February 27th. The asset manager reported $1.24 earnings per share (EPS) for the quarter. KKR & Co. Inc. had a net margin of 13.94% and a return on equity of 5.42%. The business had revenue of $5.74 billion for the quarter. As a group, sell-side analysts expect that KKR & Co. Inc. will post 5.51 EPS for the current year.

KKR & Co. Inc. announced that its board has initiated a stock buyback program on Tuesday, May 5th that authorizes the company to repurchase $500.00 million in outstanding shares. This repurchase authorization authorizes the asset manager to repurchase up to 0.5% of its shares through open market purchases. Shares repurchase programs are usually a sign that the company's board believes its shares are undervalued.

KKR & Co. Inc. Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, May 29th. Investors of record on Friday, May 15th were given a $0.195 dividend. This is a boost from KKR & Co. Inc.'s previous quarterly dividend of $0.19. This represents a $0.78 annualized dividend and a dividend yield of 0.8%. The ex-dividend date of this dividend was Friday, May 15th. KKR & Co. Inc.'s dividend payout ratio is 26.53%.

Analysts Set New Price Targets

Several equities research analysts have issued reports on KKR shares. Oppenheimer decreased their price target on shares of KKR & Co. Inc. from $187.00 to $140.00 and set an "outperform" rating on the stock in a research note on Monday, April 13th. Barclays decreased their price target on shares of KKR & Co. Inc. from $127.00 to $122.00 and set an "overweight" rating on the stock in a research note on Wednesday, May 6th. The Goldman Sachs Group decreased their price target on shares of KKR & Co. Inc. from $145.00 to $110.00 and set a "buy" rating on the stock in a research note on Tuesday, April 7th. Weiss Ratings cut shares of KKR & Co. Inc. from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Thursday, May 21st. Finally, UBS Group raised their price target on shares of KKR & Co. Inc. from $113.00 to $126.00 and gave the stock a "buy" rating in a research note on Wednesday, May 6th. One analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, three have given a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $134.53.

About KKR & Co. Inc.

KKR & Co Inc is a global investment firm headquartered in New York City that specializes in private markets and alternative asset management. Founded in 1976 by Jerome Kohlberg Jr., Henry Kravis and George R. Roberts, the firm built its reputation in leveraged buyouts and has since expanded into a multi-strategy asset manager. KKR operates across private equity, credit, real assets (including real estate and infrastructure), growth equity and hedge fund strategies, offering a range of investment products and strategies for institutional and private investors.

KKR manages capital through traditional closed-end funds as well as customized vehicles such as separate accounts, co-investments, and listed investment vehicles.

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