Empowered Funds LLC Lowers Holdings in KKR & Co. Inc. $KKR

Key Points

• Empowered Funds LLC cut its KKR stake by 30.3% in the second quarter, selling 18,647 shares and retaining 42,881 shares valued at approximately $3.94 million. Institutional investors still own 76.26% of KKR’s outstanding stock.
• KKR reported quarterly earnings of $1.63 per share, beating estimates of $1.43, while revenue reached $5.73 billion versus expectations of $2.55 billion.
• The company maintains a $0.195 quarterly dividend, equivalent to a 0.7% yield, and has authorized a $500 million share-repurchase program. Analysts give KKR a consensus “Moderate Buy” rating with an average price target of $130.

Empowered Funds LLC trimmed its stake in KKR & Co. Inc. (NYSE:KKR - Free Report) by 30.3% during the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 42,881 shares of the asset manager's stock after selling 18,647 shares during the quarter. Empowered Funds LLC's holdings in KKR & Co. Inc. were worth $3,936,000 at the end of the most recent quarter.

A number of other institutional investors have also recently modified their holdings of KKR. Norges Bank bought a new stake in KKR & Co. Inc. during the 4th quarter valued at about $1,715,929,000. Legal & General Group Plc bought a new position in shares of KKR & Co. Inc. in the second quarter worth approximately $470,778,000. Bank of New York Mellon Corp bought a new position in shares of KKR & Co. Inc. in the second quarter worth approximately $298,311,000. Viking Global Investors LP purchased a new stake in shares of KKR & Co. Inc. during the third quarter valued at approximately $352,038,000. Finally, Temasek Holdings Private Ltd increased its position in shares of KKR & Co. Inc. by 164.4% during the first quarter. Temasek Holdings Private Ltd now owns 3,522,797 shares of the asset manager's stock valued at $325,859,000 after acquiring an additional 2,190,248 shares in the last quarter. 76.26% of the stock is owned by hedge funds and other institutional investors.

KKR & Co. Inc. Stock Performance

KKR stock opened at $106.30 on Wednesday. The company has a debt-to-equity ratio of 0.71, a current ratio of 0.09 and a quick ratio of 0.09. KKR & Co. Inc. has a 1 year low of $82.67 and a 1 year high of $152.10. The company has a market cap of $95.42 billion, a P/E ratio of 33.85, a price-to-earnings-growth ratio of 0.93 and a beta of 1.78. The stock's fifty day moving average price is $101.68 and its 200-day moving average price is $97.70.

KKR & Co. Inc. (NYSE:KKR - Get Free Report) last posted its quarterly earnings data on Thursday, July 30th. The asset manager reported $1.63 EPS for the quarter, beating analysts' consensus estimates of $1.43 by $0.20. KKR & Co. Inc. had a return on equity of 5.88% and a net margin of 14.41%.The company had revenue of $5.73 billion during the quarter, compared to analysts' expectations of $2.55 billion. During the same quarter in the prior year, the business earned $1.18 earnings per share. On average, equities analysts forecast that KKR & Co. Inc. will post 5.68 earnings per share for the current year.

KKR & Co. Inc. Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, August 25th. Shareholders of record on Monday, August 10th were issued a dividend of $0.195 per share. This represents a $0.78 dividend on an annualized basis and a yield of 0.7%. The ex-dividend date of this dividend was Monday, August 10th. KKR & Co. Inc.'s dividend payout ratio is currently 24.84%.

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

Wall Street Analysts Forecast Growth

Several analysts have commented on the company. Oppenheimer increased their target price on KKR & Co. Inc. from $139.00 to $166.00 and gave the company an "outperform" rating in a research note on Thursday, August 27th. Morgan Stanley lowered their price target on KKR & Co. Inc. from $153.00 to $147.00 and set an "overweight" rating on the stock in a report on Tuesday, July 21st. TD Cowen increased their price objective on KKR & Co. Inc. from $108.00 to $111.00 and gave the company a "hold" rating in a research report on Monday, August 3rd. BMO Capital Markets lifted their price objective on KKR & Co. Inc. from $112.00 to $118.00 and gave the stock an "outperform" rating in a report on Monday, August 3rd. Finally, Weiss Ratings raised KKR & Co. Inc. from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Tuesday, June 16th. Twelve investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company's stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $130.00.

More KKR & Co. Inc. News

Here are the key news stories impacting KKR & Co. Inc. this week:

• Positive Sentiment: KKR agreed to sell USI Insurance Services to Aon for approximately $17 billion in cash. KKR expects about $3.3 billion of proceeds, providing liquidity and demonstrating the value created through its Strategic Holdings portfolio. KKR To Sell USI to Aon in $17 Billion Transaction
• Positive Sentiment: The USI sale represents a sizable gain on KKR’s first core private-equity investment and supports the firm’s strategy of monetizing mature holdings. KKR also more than doubled the value of Atlantic Aviation over five years, highlighting its ability to generate portfolio appreciation before exit. KKR's $17B USI Sale Unlocks Value
• Neutral Sentiment: KKR-backed Wella, the owner of OPI nail polish, filed for a U.S. initial public offering. The listing could create another future monetization opportunity, although its valuation, timing and proceeds remain unknown. KKR-backed Wella Co. files for U.S. IPO
• Negative Sentiment: The Justice Department imposed a reported $250 million premerger penalty involving KKR, raising concerns about compliance costs, regulatory scrutiny and potential reputational damage. Investors may need more details on the settlement’s final financial impact. KKR's Record $250 Million Penalty Has a Twist

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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