KKR (NYSE:KKR) Launches Subordinated Notes Offering Due 2065 for Corporate Purposes

KKR (NYSE:KKR) recently initiated an offering of subordinated notes due 2065, which may have supported its stock price despite a reported Q1 net loss of $186 million, a decline from last year's net income. The company's efforts in broadening its investment offerings, such as launching new interval funds and maintaining shareholder returns through dividends and share buybacks, also aligned with broader market gains. While the S&P 500 has experienced a moderate rise, KKR's notable 21% price increase over the past month could reflect investor confidence in its ongoing corporate strategies and future growth potential.

Every company has risks, and we've spotted 1 risk for KKR you should know about.

AI is about to change healthcare. These 21 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early.

KKR's recent announcement of subordinated notes due 2065 could play an important role in bolstering investor confidence, potentially influencing its future revenue and earnings. The $186 million Q1 net loss is a key factor, but efforts like new interval funds and ongoing dividends and buybacks align with overall market gains. This strategy might help smooth earnings volatility and support the company’s growth narrative amid market uncertainties. In the longer term, the potential boost from the additional capital and a strong pipeline of monetizations may lead to enhanced revenue streams and improved profit margins.

Over the past five years, KKR achieved a total shareholder return of just above 390%, reflecting solid long-term growth despite recent earnings challenges. This stands out compared to the past one-year return where the company underperformed its industry, which gained 25.1%. As of today, the company's shares trade at US$113.65, making the consensus analyst price target of US$139.30 roughly 18.4% higher. Investors should consider this price movement against analyst expectations and the company's future earnings potential.

Evaluate KKR's prospects by accessing our earnings growth report.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com