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

KKR & Co. Inc. (NYSE:KKR) saw unusually large options trading activity on Monday. Stock traders bought 30,803 put options on the stock. This is an increase of 231% compared to the average daily volume of 9,300 put options.

KKR & Co. Inc. Price Performance

NYSE:KKR traded up $3.44 during mid-day trading on Monday, hitting $104.87. 1,856,748 shares of the stock traded hands, compared to its average volume of 5,897,376. The business’s 50-day moving average price is $95.99 and its 200 day moving average price is $99.06. The company has a quick ratio of 0.08, a current ratio of 0.08 and a debt-to-equity ratio of 0.70. The company has a market cap of $94.16 billion, a PE ratio of 33.39, a price-to-earnings-growth ratio of 0.86 and a beta of 1.78. KKR & Co. Inc. has a 12-month low of $82.67 and a 12-month high of $152.10.

KKR & Co. Inc. (NYSE:KKR) last posted its 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. KKR & Co. Inc. had a net margin of 14.41% and a return on equity of 5.89%. The business had revenue of $5.73 billion for the quarter, compared to analysts’ expectations of $2.55 billion. During the same period in the prior year, the company posted $1.18 EPS. On average, analysts expect that KKR & Co. Inc. will post 5.54 EPS for the current fiscal year.

KKR & Co. Inc. declared that its board has authorized a stock repurchase program on Tuesday, May 5th that permits the company to repurchase $500.00 million in outstanding shares. This repurchase authorization permits the asset manager to buy up to 0.5% of its shares through open market purchases. Shares repurchase programs are usually an indication that the company’s board believes its stock is undervalued.

KKR & Co. Inc. Announces Dividend

The company also recently declared 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. The ex-dividend date of this dividend is Monday, August 10th. This represents a $0.78 annualized dividend and a dividend yield of 0.7%. KKR & Co. Inc.’s dividend payout ratio is presently 24.84%.

Key Stories Impacting 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.

Institutional Investors Weigh In On KKR & Co. Inc.

Several large investors have recently added to or reduced their stakes in KKR. Hudson Value Partners LLC increased its stake in KKR & Co. Inc. by 4.6% in the 2nd quarter. Hudson Value Partners LLC now owns 9,655 shares of the asset manager’s stock worth $886,000 after acquiring an additional 425 shares during the last quarter. Tema ETFs LLC boosted its position in shares of KKR & Co. Inc. by 5.4% during the 2nd quarter. Tema ETFs LLC now owns 13,909 shares of the asset manager’s stock valued at $1,277,000 after acquiring an additional 712 shares during the last quarter. Canvas Wealth Advisors LLC grew its holdings in shares of KKR & Co. Inc. by 4.5% during the second quarter. Canvas Wealth Advisors LLC now owns 4,538 shares of the asset manager’s stock worth $416,000 after purchasing an additional 196 shares in the last quarter. Handelsbanken Fonder AB grew its holdings in shares of KKR & Co. Inc. by 22.3% during the second quarter. Handelsbanken Fonder AB now owns 331,880 shares of the asset manager’s stock worth $30,460,000 after purchasing an additional 60,571 shares in the last quarter. Finally, Fulton Bank N.A. increased its position in shares of KKR & Co. Inc. by 1.1% in the second quarter. Fulton Bank N.A. now owns 16,231 shares of the asset manager’s stock worth $1,490,000 after purchasing an additional 179 shares during the last quarter. Institutional investors own 76.26% of the company’s stock.

Analyst Upgrades and Downgrades

A number of research analysts recently weighed in on KKR shares. BMO Capital Markets lifted their price objective on shares of KKR & Co. Inc. from $112.00 to $118.00 and gave the company an “outperform” rating in a research note on Monday. Oppenheimer dropped their target price on KKR & Co. Inc. from $143.00 to $139.00 and set an “outperform” rating on the stock in a research report on Friday, July 17th. Piper Sandler cut their price target on KKR & Co. Inc. from $135.00 to $117.00 and set an “overweight” rating for the company in a report on Tuesday, April 7th. Zacks Research upgraded KKR & Co. Inc. from a “strong sell” rating to a “hold” rating in a research 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 issued a Hold rating to the company’s stock. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus target price 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.