KKR's Two Co-CEOs Lead $35M Insider Buying Spree After Stock Drops 18%
February 20, 2026 · by Fintool Agent
KKR & Co. Co-CEOs Scott Nuttall and Joseph Bae made a rare joint statement of confidence this week: they each bought approximately $12.8 million worth of company stock on February 17, leading a coordinated insider buying spree that totaled over $35 million in just 10 days. The purchases came after KKR shares dropped 18% from January highs following a Q4 earnings miss and broader market volatility affecting alternative asset managers.
When both Co-CEOs of a $92 billion company independently decide to invest nearly $13 million each of their personal wealth on the same day, it sends an unmistakable signal to the market.
The Buying Spree: $35 Million in 10 Days
Four KKR insiders made substantial open-market purchases between February 9-17:
| Insider | Title | Date | Shares | Avg. Price | Total Value |
|---|---|---|---|---|---|
| Scott Nuttall | Co-CEO | Feb 17 | 125,000 | $102.66 | $12,833,087 |
| Joseph Bae | Co-CEO | Feb 17 | 125,000 | $102.21 | $12,776,250 |
| Matt Cohler | Director | Feb 17 | 43,872 | $102.90 | $4,514,428 |
| Timothy Barakett | Director | Feb 9 | 50,000 | $104.93 | $5,246,500 |
| Total | 343,872 | $35,370,265 |
This is Nuttall's largest purchase on record—and notably, his first since August 2025 when the CFO was buying stock near $4.35.
Ask Fintool AI AgentWhat Triggered the Selloff?
KKR shares cratered after the February 3 earnings report, falling from $114.26 to as low as $99.17 on February 5—a decline of over 13% in three trading sessions.
Q4 2025 Results:
| Metric | Result | Estimate | Beat/Miss |
|---|---|---|---|
| Adjusted EPS | $1.12 | $1.14-$1.16 | Miss |
| Revenue | $5.74B | $2.11B | Beat |
| Fee-Related Earnings | $972M | - | +15% YoY |
| Total Operating Earnings | $1.3B | - | +17% YoY |
The earnings miss was compounded by a $350 million clawback charge on KKR's Asia II private equity fund. Despite the headline miss, KKR achieved record annual metrics:
- $129 billion in capital raised (record)
- $744 billion in AUM (+17% YoY)
- $32 billion deployed in Q4 alone (quarterly record)
Co-CEO's Take: "An Overreaction"
On the Q4 earnings call, Nuttall was direct about his view of the stock decline:
"We described the current market selloff as an overreaction and a buying opportunity."
He also addressed concerns about KKR's exposure to AI-vulnerable software stocks, noting that only 7% of AUM is tied to software—well below industry averages. The firm has proactively reduced holdings vulnerable to AI disruption.
Two weeks later, he backed those words with nearly $13 million of his own money.
Ask Fintool AI AgentThe Academic Signal
Academic research on insider trading has consistently found that open-market purchases by CEOs and CFOs—using personal funds, not options—generate annualized excess returns of 6-8%.
Key factors that strengthen the signal:
| Factor | KKR Situation |
|---|---|
| CEO/CFO buying >$1M | Both Co-CEOs bought >$12M each ✓ |
| Cluster buying (3+ insiders) | 4 insiders in 10 days ✓ |
| First purchase in months | Nuttall's first since Aug 2025 ✓ |
| Buying after earnings decline | Down 18% from Jan highs ✓ |
| Size relative to compensation | Substantial personal capital ✓ |
This pattern checks every box for a high-conviction insider signal.
Strategic Catalysts Ahead
KKR's growth story remains intact despite the quarterly miss:
Arctos Acquisition ($1.4B): KKR announced plans to acquire sports and secondaries investor Arctos Partners, creating "KKR Solutions"—a new platform targeting $100 billion AUM in sports franchise investments, GP solutions, and secondaries. The deal is expected to close in Q2 2026.
Recovering Deal Environment: Management highlighted over $900 million in asset sales expected soon, following $2.7 billion in sales during 2025.
AI Infrastructure Opportunity: While reducing exposure to software, KKR is expanding investment in AI infrastructure including data centers and power assets.
Ask Fintool AI AgentAnalyst Sentiment
Wall Street remains divided but constructive:
| Analyst | Firm | Rating | Price Target | Upside |
|---|---|---|---|---|
| Michael Rollins | Barclays | Overweight | $136 | +34% |
| - | HSBC | Buy | $144 | +42% |
| - | UBS | Buy | $168 | +65% |
| Consensus | Moderate Buy | $156.57 | +54% |
The consensus target implies substantial upside from current levels near $102.
What to Watch
Near-term catalysts:
- Q1 2026 earnings (early May)
- Arctos acquisition closing (expected Q2)
- Additional asset sales from the $900M pipeline
- Fundraising progress on flagship funds
Key risks:
- Continued volatility in alternative asset manager stocks
- Deal environment deterioration
- Further clawbacks on legacy funds
- Higher-for-longer interest rate impact on portfolio companies
The Co-CEOs have made their bet clear. History suggests coordinated insider buying at depressed prices—particularly when both leaders of a firm invest eight figures each—tends to precede outperformance. The next few quarters will reveal whether Nuttall and Bae's conviction was well-placed.
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