KKR & Co. Inc. (KKR): Impressive Quarter, But Valuation Now Expensive

KKR & Co. Inc.’s stock (NYSE:KKR) has been rated as Mkt Perform by JMP Securities. This latest rating was contained in a recent research note published by the firm on January 13, 2020. Some experts on Wall Street have also posted a report on KKR & Co. Inc. (KKR) stock.

BMO Capital Markets rated the stock as a Outperform in a research noted published on October 08, 2019. BofA/Merrill rated the stock as a Buy in a research note published on September 23, 2019.

As it stands, a total of 15 analysts are covering KKR stock, with 10 of them rating it as a Buy while 0 of them rating it as Overweight. 5 analysts meanwhile advised investors to Hold, 0 rated it as Underweight while the 0 rated it as a Sell. A look at the overall ratings means that KKR & Co. Inc. (KKR) stock has an average rating of Overweight.

KKR & Co. Inc. (KKR) which is currently valued at 16.23 billion, with the company publishing its last earnings report on 10/29/2019, for the recent quarter of 2019. In that quarter, the company recorded a revenue of 984.3 million, which was lower than the forecast of 1.09 billion made by some analysts. For that same quarter, KKR & Co. Inc. (KKR) posted $0.55 earnings per share (EPS) which was above the analyst consensus estimate of $0.49 by $0.06, which represents an increase by 12.20%.

The stock market has a tendency to become sophisticated sometimes, even for seasoned investors and traders. Even when a trader got what he/she had expected, the market sometimes decides to move in the opposite direction. This volatility sometimes leads to some traders doubting and second-guessing their moves. This is why getting to know historical price performance, as well as both long-term and short-term trends, is very important. Over the past one week, KKR price has dropped by -0.44%. A look at its price performance over the past three months sees the stock go up by 10.23%, while it has gain 16.03% over the past six months and 39.95% since the start of the year.

Let us now look at some of its likely support and resistance level. Recent research on KKR & Co. Inc. (KKR) has seen its stock trading -2.54% below its three-month high price. A look at the other side also sees stock trading +11.52% above its three-month low. A wider look sees KKR trading -2.54% below its 52-week high and 42.38% above from its 52-week low price.

Shareholders of the company sometimes like to find out how their investments are growing. KKR & Co. Inc. (KKR) has so far given an ROE of 11.80%. When the ROE is low, it means that the company isn’t generating enough profits. The Return on Assets (ROA) ratio meanwhile is an indication of how profitable a company is relative to the total asset it owns. KKR & Co. Inc. (KKR)’s ROA at the moment stands at 2.00%. Any company that is managing its assets better will have a higher return while one that manages assets poorly would result in low returns.

KKR & Co. Inc. (KKR) has a return on investment (ROI) of 1.60%. The higher the ROI percentage, the higher the profit exceeds the costs, thus analysts consider such investments as an overall gain. A negative ROI, however, means that the cost is higher than the profits, a scenario analysts consider as a net loss.

Let us now take a look at KKR & Co. Inc. (KKR)’s trading volatility. Its 7-day volatility is around 1.70%, while it has a monthly volatility of 1.61%. KKR has an ATR (Average True Range) of 0.48 and a beta factor of 1.71. The volatility of a stock is an indication of the stock’s drop or gain in case the wider market drops or surges. A beta score higher than 1 means that a stock is highly volatile while below 1 means that the volatility of a stock is low.

The price of KKR lifted by $0.24 during the normal trading session on Wednesday to trade at $29.53. The KKR & Co. Inc. (KKR) stock has a trading volume of 2.55 million shares, which is low, compared to its average daily volume of 2.71M shares.