KKR Stock Scores Price-Target Hike After Buy Signal

KKR just sent up a buy signal, and Oppenheimer upped its forecast for the stock

Managing Editor
Jul 18, 2018 at 3:16 PM
facebook X logo linkedin

Shares of global investment firm KKR & Co Inc (NYSE:KKR) are moving higher this afternoon, after earlier receiving a price-target hike to $35 from $29 at Oppenheimer -- in uncharted territory. Separately, short seller Jim Chanos said today he thinks KKR might back out of its planned $10 billion deal for Envision Healthcare (EVHC).

KKR stock has been in a long-term uptrend, with pullbacks contained by its 200-day and 320-day moving averages. The shares notched an all-time intraday high of $27.56 last Monday, and were last seen 1.2% higher to trade at $27.25 -- set for a record closing high. In fact, KKR just flashed a low-volatility/high-stock price buy signal, according to data from Schaeffer's Senior Quantitative Analyst Rocky White.

Daily Chart of KKR With 200 and 320MA

Looking at options data, short-term traders are more call-skewed than usual, with KKR's Schaeffer's put/call open interest ratio (SOIR) of 0.24 ranking in the 5th annual percentile. This indicates that near-term call open interest outweighs put open interest by a wider-than-usual margin right now. The in-the-money July 25 call is home to peak call open interest in the front-month series, with nearly 12,000 contracts outstanding, and data from the major options exchanges points to significant buy-to-open activity.

Oppenheimer is far from the only analyst sporting an optimistic outlook toward KKR stock. Of the seven brokerage firms following the equity, five sport "strong buy" recommendations. What's more, KKR's average 12-month price target now stands at $30.54, up from $25.69 three months ago.
Looking ahead, it's worth noting that KKR is scheduled to report earnings next Thursday, July 26. The stock has averaged a fairly modest 2.4% single-day price move after its last eight earnings reports, but KKR's short-term options are currently pricing in a 4.2% swing.
With this event on the horizon, traders looking to join the equity's bullish bandwagon may want to consider call options dated no earlier than mid-August, where at-the-money implied volatility is currently more than 5 percentage points lower than next week's 7/27 expiration series. In fact, as we noted yesterday, KKR's monthly August options are pricing in some of the lowest volatility expectations of the past year, as based on its Schaeffer's Volatility Index (SVI) ranking.

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls



Rainmaker Ads CGI