KKR Should I Buy
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KKR is not a strong buy for a beginner, long-term investor at this moment. While the company has positive insider buying activity and hedge fund interest, the technical indicators are mixed, and the financial performance shows declining net income and EPS. Additionally, the options data and recent news suggest bearish sentiment and potential risks in the private credit market. It is better to wait for clearer positive signals or improved financial performance before investing.
The MACD is positive and expanding, indicating bullish momentum. However, the RSI is neutral, and the moving averages are bearish (SMA_200 > SMA_20 > SMA_5). The stock is trading near its pivot level of 94.183, with resistance at 101.728 and support at 86.639. Overall, the technical indicators are mixed.
KKR's top executives purchased $8.8 million in shares during a market dip, signaling confidence in the company's long-term value. Hedge funds are significantly increasing their buying activity, up 604.51% over the last quarter.
Recent news highlights risks in the private credit market, including warnings from prominent investors and record redemption requests from competitors like Blackstone. Additionally, FS KKR Capital Corp.'s dividend cut has negatively impacted investor confidence. The financial performance shows declining net income and EPS, which may deter long-term investors.
In Q4 2025, revenue increased by 8.13% YoY to $5.1 billion. However, net income dropped by 0.59% YoY to $1.1 billion, and EPS fell to 0, down 100% YoY. Gross margin also dropped to 0, reflecting significant challenges in profitability.
Analyst sentiment is mixed. Barclays, RBC Capital, and Morgan Stanley maintain positive ratings with price targets ranging from $125 to $177, citing long-term potential and attractive entry points. However, several firms, including UBS, TD Cowen, and Evercore ISI, have lowered their price targets due to shifting macroeconomic dynamics and concerns about private credit exposure.
