Insiders have access to real-time information on their companies and often also have a wealth of experience and knowledge that can help them evaluate their firms’ prospects. If they are buying company stock, it’s generally worth taking a closer look.
In this report, we are going to highlight an interesting insider purchase at KKR & Co Inc (KKR:US). KKR is a global investment firm that offers alternative asset management, capital markets, and insurance solutions. Operating in 21 cities worldwide, it employs over 800,000 people. It is listed on the New York Stock Exchange and currently has a market capitalization of $33.9 billion.
KKR & Co: Insider Buying
Our data shows that on February 17, board member Matthew Cohler bought 8,305 KKR shares at a price of $59.41 per share. This trade cost the insider approximately $493,000 and increased his holding to 59,444 shares.
Mr. Cohler – who joined the KKR board in late 2021 – is an experienced investor. Previously, he was General Partner at the venture capital firm Benchmark, where for over a decade he led early-stage investments in internet and software startup businesses. Currently, he serves on the board of trustees at Environmental Defense Fund, and on the investment committee at the Chan Zuckerberg Initiative and at the Yale Investments Office. This experience means he is likely to have a good understanding of KKR’s intrinsic value.
Strong Q4 Results
KKR recently posted a strong set of Q4 results.
For the period, fee related earnings amounted to $606 million, up 45% year over year. Meanwhile, after-tax distributable earnings came to $1.4 billion ($1.59/adj. share), up 158% year over year. At the end of the period, the group had assets under management of $471 billion, up 87% year over year.
On the back of these results, KKR announced that it would be raising its regular annualized dividend from $0.58 to $0.62 per share.
“The fourth quarter closed out an exceptional year for KKR. We had record quarterly and annual figures across a number of metrics, including fee related earnings per share and after-tax distributable earnings per share. Significant fundraising and the addition of Global Atlantic drove an 87% increase in our AUM to $471 billion. We enter 2022 with significant momentum and continued conviction in our long-term growth prospects,” commented Joseph Y. Bae and Scott C. Nuttall, Co-Chief Executive Officers.
In light of these results, and the comments from management, we see the insider buying here as a bullish indicator.