KKR & Co. Inc. (NYSE:KKR), a global investment giant, has recently garnered a collective “Moderate Buy” recommendation from a significant cohort of seventeen leading ratings firms, signaling a generally optimistic outlook on its market position and future prospects. This consensus view reflects a detailed analysis by prominent financial institutions, indicating that while not an aggressive buy, KKR’s stock holds considerable appeal for investors.
Diving deeper into the analyst landscape, the breakdown of these recommendations reveals a robust endorsement, with thirteen firms assigning a clear “buy” rating, while only four opted for a “hold.” This strong majority sentiment underscores a widespread belief in KKR’s underlying value and growth potential, positioning it as a compelling asset in the current financial climate. Furthermore, the average twelve-month target price among brokerages covering the stock stands at an impressive $155.00, suggesting significant upside from its current valuation.
Several top-tier analysts have actively adjusted their perspectives on KKR, highlighting specific catalysts for their updated targets. Barclays, for instance, elevated its price objective for KKR from $141.00 to $155.00, reinforcing an “overweight” rating. Similarly, Piper Sandler initiated coverage with an “overweight” rating and a $150.00 price target, demonstrating fresh confidence in the company. Evercore ISI also raised its target from $130.00 to $150.00, maintaining an “outperform” rating, collectively painting a picture of growing analyst confidence.
However, the analyst community is not monolithic, with some firms adopting a more cautious stance. Citizens Jmp, for example, recalibrated KKR & Co. Inc. from an “outperform” to a “market perform” rating, suggesting a more neutral outlook. TD Cowen also adjusted its target price downwards from $183.00 to $126.00, while still retaining a “buy” rating, indicating varied interpretations of market dynamics and company specifics.
Beyond analyst opinions, KKR’s recent financial performance provides concrete justification for investor interest. The asset manager reported strong quarterly earnings on July 31st, with earnings per share (EPS) of $1.18, successfully surpassing consensus estimates of $1.14. Revenue for the quarter also exceeded expectations, reaching $1.86 billion against an anticipated $1.81 billion, showcasing robust operational results and effective capital deployment.
Further enhancing its appeal to shareholders, KKR & Co. Inc. recently declared a quarterly dividend of $0.185, payable on August 26th. This marks an increase from the previous quarter’s dividend of $0.18, translating to an annualized dividend of $0.74 and a yield of 0.5%. The company’s conservative payout ratio of 31.22% suggests financial stability and a sustainable approach to returning value to its investors.
Insider activity also offers intriguing insights into the company’s health. Notably, Director Timothy R. Barakett made a substantial purchase of 35,000 shares of KKR stock in May, valued at over $4.1 million. This significant acquisition increased his direct ownership to 185,000 shares, reflecting strong confidence from within the company’s leadership regarding its future prospects.
Conversely, Chairman George R. Roberts executed a large sale of over 1.19 million shares in June, totaling more than $142 million. While a notable transaction, it represents a minor adjustment to his vast holdings, with the chairman still owning over 82 million shares, reinforcing the substantial insider investment in the firm’s long-term success.
Institutional investors continue to play a crucial role in KKR’s ownership structure, with 76.26% of the stock held by large entities. Firms like New York Life Investment Management LLC and Private Wealth Partners LLC have recently increased their positions, while others like Fjarde AP Fonden Fourth Swedish National Pension Fund have also boosted their stakes, signifying broad institutional confidence in KKR’s asset management strategies and market performance.
