Rakuten Investment Management Inc. Increases Stake in KKR & Co. Inc. $KKR

Key Points

• Rakuten Investment Management increased its KKR stake by 10.6% in the second quarter, bringing its holdings to 109,209 shares valued at approximately $9.7 million. Institutional investors and hedge funds collectively own 76.26% of KKR.
• KKR recently reported quarterly earnings of $1.63 per share, exceeding the $1.43 consensus estimate, while revenue reached $5.73 billion. Analysts maintain a “Moderate Buy” consensus with an average price target of $130.
• The company authorized a $500 million share buyback and pays a quarterly dividend of $0.195 per share, equivalent to a 0.7% annualized yield.

Rakuten Investment Management Inc. grew its holdings in shares of KKR & Co. Inc. (NYSE:KKR - Free Report) by 10.6% during the 2nd quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund owned 109,209 shares of the asset manager's stock after purchasing an additional 10,457 shares during the quarter. Rakuten Investment Management Inc.'s holdings in KKR & Co. Inc. were worth $9,713,000 at the end of the most recent quarter.

A number of other hedge funds have also modified their holdings of the business. Praxis Investment Management Inc. lifted its stake in shares of KKR & Co. Inc. by 0.9% in the fourth quarter. Praxis Investment Management Inc. now owns 10,006 shares of the asset manager's stock worth $1,276,000 after buying an additional 94 shares in the last quarter. Horizon Bancorp Inc. IN grew its stake in KKR & Co. Inc. by 3.8% during the 1st quarter. Horizon Bancorp Inc. IN now owns 2,622 shares of the asset manager's stock valued at $243,000 after acquiring an additional 95 shares in the last quarter. Western Pacific Wealth Management LP grew its stake in KKR & Co. Inc. by 34.8% during the 1st quarter. Western Pacific Wealth Management LP now owns 387 shares of the asset manager's stock valued at $36,000 after acquiring an additional 100 shares in the last quarter. Wernau Asset Management Inc. raised its holdings in KKR & Co. Inc. by 1.0% in the 1st quarter. Wernau Asset Management Inc. now owns 10,877 shares of the asset manager's stock valued at $1,006,000 after acquiring an additional 104 shares during the last quarter. Finally, Mission Wealth Management LP raised its holdings in KKR & Co. Inc. by 0.5% in the 4th quarter. Mission Wealth Management LP now owns 20,567 shares of the asset manager's stock valued at $2,622,000 after acquiring an additional 110 shares during the last quarter. 76.26% of the stock is currently owned by institutional investors and hedge funds.

KKR & Co. Inc. News Summary

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

• Positive Sentiment: Strong analyst price-target increase: Oppenheimer raised its KKR price target from $139 to $166 and reiterated an “outperform” rating, implying substantial upside from recent levels. Benzinga analyst rating report
• Positive Sentiment: Expansion in private aviation infrastructure: Apollo-managed funds acquired a significant interest in Atlantic Aviation, while KKR-managed funds remain a substantial shareholder. The partnership could support Atlantic Aviation’s growth and preserve KKR’s exposure to a potentially attractive infrastructure platform. Apollo Funds and KKR Announce Strategic Partnership
• Positive Sentiment: New infrastructure investment: KKR and Apollo are partnering with Enbridge on approximately C$2.7 billion of expansions to the Westcoast natural-gas pipeline system in British Columbia, expanding KKR’s exposure to energy infrastructure and long-term contracted assets. Enbridge, KKR form joint venture
• Positive Sentiment: AI data-center exposure: KKR is investing in SK Telecom’s newly launched SK Horizon, an AI data-center infrastructure company. The deal gives KKR participation in the expanding demand for data-center capacity and digital infrastructure. SK Horizon investment announcement
• Neutral Sentiment: Antitrust case resolution: KKR agreed to a stipulation and order with the U.S. Department of Justice, potentially removing some uncertainty, although the settlement also highlights ongoing regulatory and legal risks. KKR reaches settlement in DOJ antitrust case
• Neutral Sentiment: Fixed-income appeal: An analysis described KKR’s “baby bonds” as offering potential capital appreciation, but this is an investment view on the company’s debt securities rather than a direct earnings catalyst for common stock. KKR baby bonds analysis
• Negative Sentiment: Reported fraud investigation: A law firm is seeking KKR investors to participate in a fraud investigation, creating potential litigation, reputational, and financial risks. The notice does not establish wrongdoing, but it may weigh on sentiment. KKR investor fraud investigation notice

KKR & Co. Inc. Trading Down 0.5%

KKR opened at $108.74 on Friday. KKR & Co. Inc. has a one year low of $82.67 and a one year high of $152.10. The stock has a market capitalization of $97.61 billion, a PE ratio of 34.63, a P/E/G ratio of 0.92 and a beta of 1.78. The business's 50 day moving average price is $101.16 and its 200 day moving average price is $97.74. The company has a debt-to-equity ratio of 0.71, a quick ratio of 0.09 and a current ratio of 0.09.

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

KKR & Co. Inc. declared that its board has approved a share buyback plan on Tuesday, May 5th that authorizes the company to repurchase $500.00 million in outstanding shares. This repurchase authorization authorizes the asset manager to reacquire up to 0.5% of its shares through open market purchases. Shares repurchase plans are typically a sign that the company's board of directors believes its stock is undervalued.

KKR & Co. Inc. Announces Dividend

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

Analysts Set New Price Targets

KKR has been the topic of several recent research reports. Weiss Ratings upgraded KKR & Co. Inc. from a "sell (d+)" rating to a "hold (c-)" rating in a report on Tuesday, June 16th. Morgan Stanley cut their price target on KKR & Co. Inc. from $153.00 to $147.00 and set an "overweight" rating for the company in a report on Tuesday, July 21st. HSBC lifted their price objective on KKR & Co. Inc. from $118.00 to $121.00 and gave the stock a "buy" rating in a research report on Monday, July 20th. UBS Group upped their target price on KKR & Co. Inc. from $113.00 to $126.00 and gave the company a "buy" rating in a report on Wednesday, May 6th. Finally, Oppenheimer raised their target price on KKR & Co. Inc. from $139.00 to $166.00 and gave the stock an "outperform" rating in a research note on Thursday. Twelve investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $130.00.

KKR & Co. Inc. Profile

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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