Is KKR & Co. Inc. (KKR) positioned for future growth?

KKR & Co. Inc. (NYSE: KKR) stock fell -1.36% on Wednesday to $49.44 against a previous-day closing price of $50.12. With 2.05 million shares changed hands, the volume of the stock remained lighter than its average volume of 2.99 million shares. During the session, the Asset Management company that operates in wider Financial sector, reached to the highest price of $49.69 whereas the lowest price it dropped to was $48.92. The 52-week range on KKR shows that it touched its highest point at $60.53 and its lowest point at $41.77 during that stretch. It currently has a 1-year price target of $65.57. With its current market cap of 42.62 billion, KKR has annualized dividend of $0.66 while the current yield stands at 1.33%. Beta for the stock currently stands at 1.53.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of KKR was up-trending over the past week, with a rise of 0.10%, but this was down by -3.13% over a month. Three-month performance dropped to -11.56% while six-month performance fell -3.68%. The stock lost -4.83% in the past year, while it has gained 6.51% so far this year. A look at the trailing 12-month EPS for KKR yields -1.35 with Next year EPS estimates of 4.79. For the next quarter, that number is 0.78. This implies an EPS growth rate of -116.90% for this year and 35.55% for next year. EPS is expected to grow by 10.05% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -20.80%.

Float and Shares Shorts:

At present, 862.30 million KKR shares are outstanding with a float of 743.40 million shares on hand for trading. On Apr 27, 2023, short shares totaled 9.12 million, which was 1.06% higher than short shares on Mar 30, 2023. In addition to Mr. George R. Roberts J.D. as the firm’s Co-Founder & Exec. Co-Chairman, Mr. Henry Robert Kravis serves as its Co-Founder & Exec. Co-Chairman.

Institutional Ownership:

Through their ownership of 55.27% of KKR’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 7.32% of KKR, in contrast to 33.31% held by mutual funds. Shares owned by individuals account for 23.53%. As the largest shareholder in KKR with 4.86% of the stake, Capital Research & Management Co holds 41,872,775 shares worth 41,872,775. A second-largest stockholder of KKR, The Vanguard Group, Inc., holds 38,193,500 shares, controlling over 4.43% of the firm’s shares. Harris Associates LP is the third largest shareholder in KKR, holding 26,656,801 shares or 3.10% stake. With a 2.33% stake in KKR, the Vanguard Total Stock Market ETF is the largest stakeholder. A total of 20,093,729 shares are owned by the mutual fund manager. The American Funds Growth Fund of Ame, which owns about 1.93% of KKR stock, is the second-largest Mutual Fund holder. It holds 16,575,180 shares valued at 879.64 million. Akre Focus Fund holds 1.69% of the stake in KKR, owning 14,526,670 shares worth 770.93 million.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Mar 30, 2023, KKR reported revenue of $330.07M and operating income of -$450.05M. The EBITDA in the recently reported quarter was $1.12B and diluted EPS was -$1.22.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for KKR since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With KKR analysts setting a high price target of $83.00 and a low target of $54.00, the average target price over the next 12 months is $65.32. Based on these targets, KKR could surge 67.88% to reach the target high and rise by 9.22% to reach the target low. Reaching the average price target will result in a growth of 32.12% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.

Summary of Insider Activity:

Insiders traded KKR stock several times over the past three months with 0 Buys and 2 Sells. In these transactions, 0 shares were bought while 40,000 shares were sold. The number of buy transactions has increased to 47 while that of sell transactions has risen to 9 over the past year. The total number of shares bought during that period was 197,251,608 while 2,172,262 shares were sold.

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