Company Insiders Are Buying The Dip
One area investors overlook is what company insiders are doing with their stock purchases.
Insiders include company management and members of the board of directors.
And they know more than anybody about what’s going on inside a business.
Every quarter, management gets on a call with analysts to answer questions.
Plus, CEOs are frequently on CNBC or Bloomberg TV talking about their companies or the markets.
But actions speak louder than words.
If company insiders are buying up lots of shares, then I’m going to pay attention.
KKR & Co. (ticker: KKR) has had a rough 2026 so far.
So far, the stock is down over 30% since the calendar flipped.
It’s currently trading under $90, which hasn’t happened since the tariff crash in April 2025.
However, despite the drop in the share price, company management is buying up shares.
On February 9th, Timothy Barakett, a member of KKR’s board of directors, bought $5 million worth of KKR stock.
And a week later, Scott Nuttall and Joseph Bae, co-CEOs of KKR, along with Matt Cohler, another member of KKR’s board of directors, combined to buy more than $30 million in KKR stock.
$35 million is a lot of money and gives me confidence company management sees KKR turning the corner.
Before we jump in, we need to know more about KKR and its recent struggles.
KKR is an asset manager with over $700 billion in assets.
The company’s goal is to manage over $1 trillion by 2030.
Over the past 15 years, KKR is averaging 18% growth each year in its assets under management.
So why is the stock price dropping so much?
The software industry is taking a big hit from concerns about AI.
And many asset managers, like KKR, have a big exposure to software.
KKR lends money to software companies, and in some instances, takes partial or complete ownership of the company.
If the software industry loses business to AI, it’s really going to hurt companies like KKR.
However, in KKR’s last earnings call, Scott Nuttall (remember him?) said only about 7% of KKR’s assets under management is tied to software.
KKR’s software exposure isn’t so bad.
And you could be buying up shares of KKR at an amazing price.
KKR’s current price-to-book is only 2.9x, which hasn’t been lower in over 2 years.
And its return on equity (ROE) of 9% is much higher than the industry average.
KKR management was buying up millions in stock.
But they were buying it when the price was over $100 a few weeks ago.
You can get in at prices under $90!
So give KKR a look… I’m not sure how much longer the price is going to stay down.
Coach Parker
Category: Stocks
