KKR & Co. Inc. (KKR), headquartered in New York, is a private equity and real estate investment firm specializing in direct and fund-of-fund investments. Valued at $102.7 billion by market cap, the leading global investment firm manages investments such as private equity, energy, infrastructure, real estate, credit strategies, and hedge funds.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and KKR definitely fits that description, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the asset management industry. KKR’s diversified investment portfolio, strong brand recognition attracting both investors and investment opportunities, a global presence with significant assets under management, leadership and skilled professionals, integrated capital markets expertise, and long-term investment horizon, have strengthened its competitive edge in the industry.
Despite its notable strength, KKR slipped 30.8% from its 52-week high of $170.40, achieved on Jan. 31. Over the past three months, KKR stock has declined 20.3%, underperforming the S&P 500 Index’s ($SPX) 4.2% dip during the same time frame.
In the longer term, shares of KKR dipped 9.3% over the past six months, underperforming SPX’s six-month 1.3% losses. However, the stock climbed 17.8% over the past 52 weeks, outperforming SPX’s 7.4% returns over the last year.
To confirm the bearish trend, KKR has been trading below its 200-day moving average since early March. The stock is trading below its 50-day moving average since early February.
KKR's strong performance can be attributed to strategic growth initiatives and a thriving asset management segment. With a focus on diverse investment capabilities and a robust capital base, KKR has seen growth across multiple sectors. The insurance segment saw significant improvement, with the acquisition of Global Atlantic boosting earnings. Additionally, increased stakes in private equity investments are expected to drive operating earnings higher in the coming years.
On Feb. 4, KKR shares closed down more than 8% after reporting its Q4 results. Its adjusted EPS of $1.32 beat the consensus estimate of $1.28. The company’s total revenue came in at $3.3 billion, significantly exceeding Wall Street expectations of $2 billion.
KKR’s rival, The Carlyle Group Inc. (CG) shares have lagged behind the stock, with a 4.6% loss over the past 52 weeks but outpaced the stock with a 2.5% uptick over the past six months.
Wall Street analysts are bullish on KKR’s prospects. The stock has a consensus “Strong Buy” rating from the 18 analysts covering it, and the mean price target of $171.10 suggests an ambitious potential upside of 45.2% from current price levels.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
