Sapient Capital LLC Cuts Stock Holdings in KKR & Co. Inc. $KKR

Key Points

• Sapient Capital cut its KKR stake by 55.6% in the first quarter, selling 194,083 shares and retaining 155,087 shares valued at approximately $14.34 million. Institutional investors and hedge funds own 76.26% of KKR.
• KKR reported a strong second quarter, with EPS of $1.63 beating the $1.43 consensus and revenue of $5.73 billion exceeding estimates. Analysts remain broadly positive, with a “Moderate Buy” consensus and an average price target of $129.75.
• KKR approved a $500 million share-repurchase plan and declared a quarterly dividend of $0.195 per share, equivalent to a 0.8% annualized yield. The firm is also reportedly nearing a deal to acquire Integer Holdings, which could expand its healthcare portfolio but carries execution and financing risks.

Sapient Capital LLC reduced its stake in KKR & Co. Inc. (NYSE:KKR - Free Report) by 55.6% during the 1st quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 155,087 shares of the asset manager's stock after selling 194,083 shares during the period. Sapient Capital LLC's holdings in KKR & Co. Inc. were worth $14,340,000 at the end of the most recent reporting period.

Several other institutional investors and hedge funds have also recently bought and sold shares of KKR. Washington Trust Advisors Inc. acquired a new stake in KKR & Co. Inc. in the 4th quarter valued at about $27,000. Elyxium Wealth LLC purchased a new stake in shares of KKR & Co. Inc. during the fourth quarter worth approximately $27,000. SouthState Bank Corp raised its holdings in KKR & Co. Inc. by 185.0% in the fourth quarter. SouthState Bank Corp now owns 228 shares of the asset manager's stock valued at $29,000 after acquiring an additional 148 shares in the last quarter. Garton & Associates Financial Advisors LLC purchased a new position in KKR & Co. Inc. in the fourth quarter worth approximately $29,000. Finally, MV Capital Management Inc. acquired a new position in KKR & Co. Inc. during the 4th quarter worth approximately $31,000. 76.26% of the stock is 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: Quarterly earnings beat expectations: KKR reported second-quarter EPS of $1.63, ahead of the $1.42–$1.43 consensus and up from $1.18 a year earlier. Revenue reached $5.73 billion versus estimates of $2.95 billion. Growth was driven by higher assets under management, management fees, transaction fees, fundraising and inflows in its asset-management and insurance businesses. KKR Q2 Earnings and Revenues Top Estimates
• Positive Sentiment: Analysts raised price targets: Royal Bank of Canada increased its target from $125 to $134 and maintained an “outperform” rating, while Barclays raised its target from $124 to $135 and assigned an “overweight” rating. The new targets imply roughly 32% upside from the referenced share price, reinforcing confidence in KKR’s earnings and growth outlook. Analyst Price Target Updates
• Neutral Sentiment: Potential Integer Holdings acquisition: Reports say KKR is nearing a deal to acquire medical-device outsourcing company Integer Holdings. The transaction could expand KKR’s healthcare investment portfolio, although its eventual valuation, financing and execution risks remain unknown. KKR Nearing Deal to Acquire Integer Holdings
• Neutral Sentiment: Dividend declared: KKR announced a quarterly dividend of $0.195 per share, payable August 25 to shareholders of record August 10. The dividend provides continued shareholder income, though its approximately 0.8% annualized yield is unlikely to be a major share-price catalyst.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently weighed in on the stock. Barclays raised their price objective on shares of KKR & Co. Inc. from $124.00 to $135.00 and gave the company an "overweight" rating in a report on Friday. Morgan Stanley dropped their target price 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. HSBC raised their price target on KKR & Co. Inc. from $118.00 to $121.00 and gave the company a "buy" rating in a research note on Monday, July 20th. Zacks Research raised KKR & Co. Inc. from a "strong sell" rating to a "hold" rating in a report on Thursday, May 28th. Finally, Keefe, Bruyette & Woods upgraded KKR & Co. Inc. to a "moderate buy" rating in a research note on Monday, July 20th. Eleven research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $129.75.

KKR & Co. Inc. Stock Up 0.3%

KKR opened at $101.69 on Monday. KKR & Co. Inc. has a one year low of $82.67 and a one year high of $152.10. The company has a debt-to-equity ratio of 0.70, a quick ratio of 0.08 and a current ratio of 0.08. The stock has a market capitalization of $91.31 billion, a P/E ratio of 32.39, a price-to-earnings-growth ratio of 0.86 and a beta of 1.78. The business's 50-day simple moving average is $95.99 and its 200-day simple moving average is $99.06.

KKR & Co. Inc. (NYSE:KKR - Get Free Report) last announced its earnings results on Thursday, July 30th. The asset manager reported $1.63 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.43 by $0.20. The firm had revenue of $5.73 billion during the quarter, compared to analysts' expectations of $2.55 billion. KKR & Co. Inc. had a return on equity of 5.89% and a net margin of 14.41%.During the same period in the prior year, the firm earned $1.18 EPS. Analysts anticipate that KKR & Co. Inc. will post 5.54 EPS for the current year.

KKR & Co. Inc. announced that its board has approved a stock repurchase plan on Tuesday, May 5th that allows the company to repurchase $500.00 million in shares. This repurchase authorization allows the asset manager to reacquire up to 0.5% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company's board of directors believes its shares are undervalued.

KKR & Co. Inc. Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, August 25th. Stockholders of record on Monday, August 10th will be issued a $0.195 dividend. This represents a $0.78 annualized dividend and a dividend yield of 0.8%. The ex-dividend date of this dividend is Monday, August 10th. KKR & Co. Inc.'s dividend payout ratio is presently 24.84%.

KKR & Co. Inc. Company 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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