KKR & Co. Inc. (KKR): The Insiders Are Selling, Are You?

With 4 sell/buy ratio, KKR & Co. Inc. (NYSE:KKR) experienced more insider selling than insider buying over the last three months. Could this be a sign for outside investors to start selling as well? KKR recorded 4 sales on the open market in the last three months. They sold nearly 1,948,658 shares while purchases amounted to zero shares that period. Looking even further back to 12 months, corporate insiders offloaded 1,948,658 shares when buyers snapped up no shares. The 12-month’s totals signify about a 4-to-1 sell/buy ratio.

Valueact Holdings, L.P. gathered a total of 500 thousand shares of KKR & Co. Inc. (KKR) at average share price of $21.03. This insider trade in the company took place on 02/09/2018. The total for the purchase was set at $10.52 million. After this transaction, the 10% Owner account balance stood at 49.7 million shares. The stock grew 2.76 percent since that insider purchase. On 02/08/2018, Valueact Holdings, L.P., 10% Owner, purchased 1.45 million shares at a price per share of $21.55. This added 31.25 million shares to the insider’s fortune and the stock saw a 0.28 percent rally in value since the news became public. This transaction left 49.2 million shares in the 10% Owner account.

On 08/17/2017, Director Scully Robert W performed a purchase transaction worth $1 million. This purchase at $18.21 each has added 55 thousand shares into the insider’s portfolio position. Meanwhile, shares have recorded 18.67 percent increase since the transaction was reported. The insider now is left with 104.5 thousand shares remaining in the account. Scully Robert W, who performs the Director job, sold 168.4 thousand shares for $2.39 million. The disposal occurred on 08/02/2016 was priced at $14.22 per share. The share price soared 51.97 percent since the reporting date. Scully Robert W now left with a stake of 43.28 thousand KKR stock worth $935.19 thousand after the insider selling.

The 12-month median price target for KKR & Co. Inc. (KKR) assigned by the analysts stands at $32, which represents a return potential of 48.08 percent when compared to the closing price of the stock of $21.61 on Thursday, December 06. The lowest price target for the stock is $23 — slightly more than 6.43 percent from KKR’s current share price. The stock will probably climb 43.08 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $35-month high price target. This represents a whopping 61.96 percent increase from where shares are trading today.

On momentum oscillators front, ‘RSI’ has touched 40.16 on daily chart, which may remain a cause for concern. If the price breaks below $20.51 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $21.9 mark may result into a pull-back move towards $22.19 level. The stock is currently hovering around the first support level of $21.06. Below this, the next support is placed in the zone of $20.51. Till the time, the KKR stock trades above this level, bulls have nothing to fear.

Shares of KKR & Co. Inc. (KKR) are trading at a P/E ratio of 6.89 times earnings reported for the past 12 months. The industry KKR operates in has an average P/E of 229.55. Its P/E ratio went as low as 9.85X and as high as 25.92 over the 5-year span. Further, it is sporting a 5.08 on the Price-to-Sales ratio. Compare this with the industry average P/S of 52.72. 0 percent is the gross profit margin for KKR & Co. Inc. and operating margin sits at 29.2 percent. Along with this, the net profit margin is 47.1 percent.

On 6th of December, KKR & Co. Inc. (NYSE:KKR) shares ended lower after a volatile session. The shares dropped -0.59 points or -2.66 percent at $21.61 with a light trade volume of 5.381 million shares. After opening the session at $21.6, the shares went as high as $21.64 and as low as $20.8001, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $17.8 billion and now has 825.75 million shares outstanding. KKR & Co. Inc. (KKR) stock has lost -9.96 percent of market value in 21 trading days.

In last reported earnings results, KKR earned $0.6 per share, better than the $0.57, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $1.18B, better than the $1.12B analysts expected. Earnings are estimated to increase by 260.2 percent this year, -3.25 percent next year and continue to increase by 4.72 percent annually for the next 5 years. Investors will get their next glimpse of KKR’s Q4 earnings on February 07. Analysts are forecasting revenue to climb 173.3 percent to $1.11B in the next fiscal quarter, while earnings are seen soaring by nearly 24.44 percent to $0.56 per share. History has shown that shares in KKR & Co. Inc. have gone up on 17 different earnings reaction days and are predicted to add 0.02 percent when the company reports upcoming earnings.

KKR stock has a trailing 3-year beta of 1.59, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was $3.24 a share in the trailing twelve months. The stock’s value has surged 2.61 percent year to date (YTD) against a rise of 10.37 percent in 12 month’s time. The company’s shares still trade -24.77 percent away from its 1-year high of $28.73 and 13.05 percent up from 52-week low of $19.11. The average consensus rating on the company is 1.9, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a buy.