Stock Traders Purchase High Volume of KKR & Co. Inc. Put Options (NYSE:KKR)

Key Points

• Unusual options activity: Traders purchased 16,250 put options on KKR on Friday, about 49% above the average volume, signaling elevated bearish bets or hedging activity.
• Significant insider buying: CEO Joseph Y. Bae bought 125,000 shares (and Director Matt Cohler bought 43,872), part of 393,872 insider purchases this quarter, with insiders now owning 23.2% of the company.
• Shareholder-friendly moves: The board approved a $500 million buyback and raised the quarterly dividend to $0.195 (annualized $0.78, ~0.8% yield), reflecting management confidence.

KKR & Co. Inc. (NYSE:KKR - Get Free Report) saw some unusual options trading activity on Friday. Traders acquired 16,250 put options on the stock. This represents an increase of 49% compared to the average volume of 10,919 put options.

Insider Activity

In other news, CEO Joseph Y. Bae bought 125,000 shares of the firm's stock in a transaction on Tuesday, February 17th. The shares were bought at an average cost of $102.19 per share, for a total transaction of $12,773,750.00. Following the acquisition, the chief executive officer directly owned 509,257 shares of the company's stock, valued at $52,040,972.83. This trade represents a 32.53% increase in their position. The acquisition was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director Matt Cohler bought 43,872 shares of the firm's stock in a transaction on Tuesday, February 17th. The stock was purchased at an average price of $102.90 per share, for a total transaction of $4,514,428.80. Following the completion of the acquisition, the director directly owned 45,477 shares in the company, valued at $4,679,583.30. The trade was a 2,733.46% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Over the last quarter, insiders have purchased 393,872 shares of company stock valued at $40,090,679. Company insiders own 23.20% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in KKR. ESL Trust Services LLC acquired a new position in KKR & Co. Inc. during the 3rd quarter worth $26,000. Asset Dedication LLC acquired a new position in KKR & Co. Inc. during the 3rd quarter worth $26,000. GGM Financials LLC acquired a new position in KKR & Co. Inc. during the 3rd quarter worth $27,000. Washington Trust Advisors Inc. acquired a new position in KKR & Co. Inc. during the 4th quarter worth $27,000. Finally, Elyxium Wealth LLC acquired a new position in KKR & Co. Inc. during the 4th quarter worth $27,000. 76.26% of the stock is owned by institutional investors and hedge funds.

KKR & Co. Inc. Trading Up 1.6%

Shares of KKR traded up $1.57 on Friday, hitting $101.91. 1,005,351 shares of the stock traded hands, compared to its average volume of 6,827,254. KKR & Co. Inc. has a 1 year low of $82.67 and a 1 year high of $153.87. The company has a quick ratio of 0.07, a current ratio of 0.07 and a debt-to-equity ratio of 0.69. The stock's 50 day moving average is $94.49 and its two-hundred day moving average is $111.73. The firm has a market capitalization of $90.86 billion, a P/E ratio of 34.66, a P/E/G ratio of 0.89 and a beta of 1.85.

KKR & Co. Inc. (NYSE:KKR - Get Free Report) last issued its quarterly earnings results on Friday, February 27th. The asset manager reported $1.24 EPS for the quarter. KKR & Co. Inc. had a net margin of 13.94% and a return on equity of 5.50%. The firm had revenue of $5.74 billion during the quarter. As a group, sell-side analysts predict that KKR & Co. Inc. will post 5.4 earnings per share for the current year.

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

KKR & Co. Inc. Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Friday, May 29th. Shareholders of record on Friday, May 15th will be given a dividend of $0.195 per share. This represents a $0.78 dividend on an annualized basis and a yield of 0.8%. This is a boost from KKR & Co. Inc.'s previous quarterly dividend of $0.19. The ex-dividend date of this dividend is Friday, May 15th. KKR & Co. Inc.'s dividend payout ratio (DPR) is presently 26.53%.

Analyst Upgrades and Downgrades

A number of equities research analysts have commented on KKR shares. HSBC raised shares of KKR & Co. Inc. from a "hold" rating to a "buy" rating and set a $144.00 price objective on the stock in a research report on Wednesday, January 28th. UBS Group lifted their target price on shares of KKR & Co. Inc. from $113.00 to $126.00 and gave the stock a "buy" rating in a research report on Wednesday. Weiss Ratings reissued a "hold (c-)" rating on shares of KKR & Co. Inc. in a research report on Monday. The Goldman Sachs Group dropped their price target on KKR & Co. Inc. from $145.00 to $110.00 and set a "buy" rating for the company in a research report on Tuesday, April 7th. Finally, Piper Sandler dropped their price target on KKR & Co. Inc. from $135.00 to $117.00 and set an "overweight" rating for the company in a research report on Tuesday, April 7th. One research analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $134.67.

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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