KKR & Co. Inc. Sees Unusually Large Options Volume (NYSE:KKR)

Key Points

• Unusual options activity: Traders bought 30,803 KKR put options, roughly 231% above the average daily volume, signaling increased downside hedging or bearish speculation.
• Strong quarterly results: KKR reported $1.63 in earnings per share, beating estimates of $1.43, while revenue reached $5.73 billion versus the $2.55 billion consensus estimate.
• Investor support remains notable: Institutional investors own 76.26% of KKR, while the company has authorized a $500 million share buyback and maintains a consensus analyst rating of “Moderate Buy” with a $130.25 price target.

KKR & Co. Inc. (NYSE:KKR - Get Free Report) was the recipient of some unusual options trading activity on Monday. Traders bought 30,803 put options on the stock. This represents an increase of approximately 231% compared to the average daily volume of 9,300 put options.

Institutional Trading of KKR & Co. Inc.

Several hedge funds have recently made changes to their positions in KKR. Washington Trust Advisors Inc. purchased a new stake in KKR & Co. Inc. in the 4th quarter worth about $27,000. Elyxium Wealth LLC purchased a new stake in KKR & Co. Inc. during the fourth quarter valued at about $27,000. SouthState Bank Corp boosted its position in KKR & Co. Inc. by 185.0% during the fourth quarter. SouthState Bank Corp now owns 228 shares of the asset manager's stock worth $29,000 after purchasing an additional 148 shares during the period. Garton & Associates Financial Advisors LLC bought a new position in KKR & Co. Inc. during the fourth quarter worth about $29,000. Finally, MV Capital Management Inc. purchased a new position in shares of KKR & Co. Inc. in the fourth quarter worth about $31,000. 76.26% of the stock is currently owned by institutional investors.

KKR & Co. Inc. Stock Performance

KKR traded up $3.44 during midday trading on Monday, reaching $104.87. The company had a trading volume of 1,856,748 shares, compared to its average volume of 5,897,376. KKR & Co. Inc. has a 12-month low of $82.67 and a 12-month high of $152.10. The business has a 50-day moving average price of $95.99 and a two-hundred day moving average price of $99.06. The stock has a market cap of $94.16 billion, a PE ratio of 33.39, a P/E/G ratio of 0.86 and a beta of 1.78. 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. (NYSE:KKR - Get Free Report) last issued its quarterly earnings results on Thursday, July 30th. The asset manager reported $1.63 earnings per share (EPS) 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 net margin of 14.41% and a return on equity of 5.89%. During the same quarter last year, the business posted $1.18 EPS. On average, sell-side analysts expect that KKR & Co. Inc. will post 5.54 earnings per share for the current fiscal year.

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

KKR & Co. Inc. Announces Dividend

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

Trending Headlines about KKR & Co. Inc.

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

• Positive Sentiment: Major Integer Holdings acquisition: KKR agreed to acquire medical-device outsourcing company Integer Holdings in an all-cash transaction. Reports put the deal value at approximately $4.3 billion to $5.7 billion, potentially adding a sizable healthcare investment and future management-fee and performance-income opportunities. KKR to Buy Device Maker Integer in $5.7 Billion Deal KKR to Buy Integer Holdings for $4.3 Billion
• Positive Sentiment: Renewable-energy expansion: KKR agreed to acquire a 50% stake in a 1.2-gigawatt portfolio of developed solar and wind assets from TotalEnergies. The European portfolio has an enterprise value of €1.8 billion and includes assets in Germany, Spain, France and Poland, reinforcing KKR’s infrastructure strategy and exposure to contracted renewable power. KKR to Acquire a 50% Stake in a Portfolio of Developed Renewable Assets from TotalEnergies Across Europe
• Positive Sentiment: Higher analyst targets: BMO Capital Markets raised its KKR price target from $112 to $118 and maintained an “outperform” rating. Other reports cited revised targets of $134 and $135, strengthening the perception that analysts see additional upside. Benzinga analyst note
• Neutral Sentiment: LEAP India IPO: KKR-backed logistics company LEAP India is seeking a valuation of approximately $734 million in an Indian initial public offering. A successful listing could provide valuation support or a future exit opportunity, but the effect on KKR’s near-term results is uncertain. KKR-backed logistics firm LEAP India seeks $734 million valuation in India IPO
• Negative Sentiment: Unusually high put-option activity: Investors purchased 30,803 KKR put options, about 231% above the average volume. The activity may reflect increased downside hedging or bearish speculation, creating a potential short-term overhang despite the positive deal news.

Analyst Upgrades and Downgrades

KKR has been the topic of a number of research analyst reports. TD Cowen cut their target price on KKR & Co. Inc. from $106.00 to $104.00 and set a "hold" rating on the stock in a research note on Monday, May 18th. Keefe, Bruyette & Woods raised KKR & Co. Inc. to a "moderate buy" rating in a research report on Monday, July 20th. Piper Sandler dropped their price target on KKR & Co. Inc. from $135.00 to $117.00 and set an "overweight" rating on the stock in a report on Tuesday, April 7th. BMO Capital Markets boosted their price objective on KKR & Co. Inc. from $112.00 to $118.00 and gave the stock an "outperform" rating in a research report on Monday. Finally, The Goldman Sachs Group reduced their price objective on KKR & Co. Inc. from $145.00 to $110.00 and set a "buy" rating for the company in a research note on Tuesday, April 7th. Eleven equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to MarketBeat, KKR & Co. Inc. currently has an average rating of "Moderate Buy" and a consensus price target of $130.25.

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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