KKR (NYSE: KKR) Plunges 2.23% on DOJ Antitrust Probe, Hits 2025 Low

Shares of KKR (NYSE: KKR) fell 2.23% on Monday, marking a third consecutive day of declines with a cumulative drop of 7.32% over the period. The stock touched its lowest level since June 2025 during intraday trading, with a 2.71% decline observed. The selloff reflects growing concerns over regulatory challenges and operational risks facing the private equity giant.

The U.S. Department of Justice (DOJ) has escalated pressure on KKR with a $650 million enforcement action, accusing the firm of systemic violations of the Hart-Scott-Rodino Antitrust Act. The lawsuit highlights alleged failures to submit required merger filings in 10 transactions from 2021–2022, including unreported acquisitions totaling over $7.3 billion. Internal communications suggest employees altered or deleted competitive analyses to minimize disclosure obligations. The case raises significant financial and reputational risks, with potential penalties and operational scrutiny threatening to undermine investor confidence.

Despite these challenges, KKR has pursued high-growth opportunities to diversify its portfolio. Recent investments include a $807 million stake in Singtel’s data center business and a $750 million commitment to UK battery storage firm Zenobē. These moves align with global trends in digital infrastructure and decarbonization, positioning KKR to capitalize on long-term value creation. The firm has also expanded holdings in India’s Reliance Retail and U.S. insurance provider USI, signaling a strategic pivot toward resilient sectors amid macroeconomic uncertainty.

Market sentiment remains mixed, with increased short interest in late September indicating bearish expectations. However, institutional investors have maintained or increased holdings, and analysts at Barclays have raised KKR’s price target to $82.00, reflecting optimism about its strategic initiatives. The firm’s 1.06% dividend yield and strong balance sheet provide some support for income-focused investors. Legal defenses, including constitutional challenges to the DOJ’s penalties and internal compliance reforms, may mitigate long-term risks, though regulatory outcomes remain uncertain.