KKR & Co. Inc. (NYSE:KKR) Stock Price Up 6.1% - Should You Buy?

Key Points

• KKR shares rose 6.1% to approximately $110.18, while trading volume was 71% below the average session volume.
• Analysts remain broadly positive: 12 rate the stock a Buy and three rate it a Hold, producing a “Moderate Buy” consensus with an average price target of $127.75.
• KKR exceeded quarterly expectations with $1.63 in EPS versus the $1.43 estimate and $5.73 billion in revenue; it also declared a $0.195 quarterly dividend and approved a $500 million share-repurchase program.

KKR & Co. Inc. (NYSE:KKR - Get Free Report)'s stock price traded up 6.1% on Tuesday . The company traded as high as $109.50 and last traded at $110.1750. 1,702,797 shares changed hands during mid-day trading, a decline of 71% from the average session volume of 5,873,632 shares. The stock had previously closed at $103.83.

Wall Street Analysts Forecast Growth

A number of analysts recently issued reports on KKR shares. Barclays raised their price objective on shares of KKR & Co. Inc. from $124.00 to $135.00 and gave the stock an "overweight" rating in a report on Friday, July 31st. Zacks Research raised shares of KKR & Co. Inc. from a "strong sell" rating to a "hold" rating in a research report on Thursday, May 28th. TD Cowen raised their price target on shares of KKR & Co. Inc. from $108.00 to $111.00 and gave the stock a "hold" rating in a research note on Monday, August 3rd. Weiss Ratings upgraded shares of KKR & Co. Inc. from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Tuesday, June 16th. Finally, Morgan Stanley lowered their price target on shares of KKR & Co. Inc. from $153.00 to $147.00 and set an "overweight" rating on the stock in a report on Tuesday, July 21st. Twelve equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $127.75.

KKR & Co. Inc. Price Performance

The stock has a market capitalization of $99.83 billion, a P/E ratio of 35.40, a price-to-earnings-growth ratio of 0.88 and a beta of 1.78. The company has a debt-to-equity ratio of 0.71, a quick ratio of 0.09 and a current ratio of 0.09. The firm has a 50-day moving average price of $97.21 and a 200 day moving average price of $98.00.

KKR & Co. Inc. (NYSE:KKR - Get Free Report) last announced its quarterly earnings data 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 company had revenue of $5.73 billion during the quarter, compared to analysts' expectations of $2.55 billion. KKR & Co. Inc. had a net margin of 14.41% and a return on equity of 5.88%. During the same quarter in the prior year, the company earned $1.18 EPS. On average, analysts expect that KKR & Co. Inc. will post 5.68 EPS for the current year.

KKR & Co. Inc. Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Tuesday, August 25th. Shareholders of record on Monday, August 10th will be paid a $0.195 dividend. This represents a $0.78 dividend on an annualized basis and a yield of 0.7%. The ex-dividend date of this dividend is Monday, August 10th. KKR & Co. Inc.'s payout ratio is 24.84%.

KKR & Co. Inc. declared that its Board of Directors has approved a share 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 purchase up to 0.5% of its shares through open market purchases. Shares repurchase programs are often a sign that the company's board of directors believes its shares are undervalued.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in the company. Brighton Jones LLC increased its holdings in KKR & Co. Inc. by 109.6% during the 4th quarter. Brighton Jones LLC now owns 4,661 shares of the asset manager's stock valued at $689,000 after purchasing an additional 2,437 shares during the period. Bison Wealth LLC bought a new stake in KKR & Co. Inc. in the fourth quarter valued at $218,000. Sivia Capital Partners LLC increased its position in KKR & Co. Inc. by 13.1% during the 2nd quarter. Sivia Capital Partners LLC now owns 2,050 shares of the asset manager's stock valued at $273,000 after purchasing an additional 237 shares during the period. United Bank purchased a new position in KKR & Co. Inc. during the 2nd quarter valued at $769,000. Finally, Arrowstreet Capital Limited Partnership bought a new position in KKR & Co. Inc. in the 2nd quarter worth $4,826,000. 76.26% of the stock is owned by hedge funds and other institutional investors.

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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