We recently compiled a list of the 10 Stocks Bear the Brunt of Trade Threats. In this article, we are going to take a look at where KKR & Co. Inc. (NYSE:KKR) stands against the other stocks.

Wall Street’s main indices fell further on Tuesday as investors sold off positions to mitigate risks from the ongoing trade tensions among some of the world’s largest economies.

The Dow Jones fell the most during the trading session, losing 1.55 percent, while the S&P 500 declined 1.22 percent. The Nasdaq dropped by 0.35 percent.

Following the US imposition of a 25-percent tax on goods from Canada and Mexico on Tuesday, countries announced a promise to retaliate. Canada, as well as China, which received a 10 percent additional tax, immediately announced retaliation. Mexico is expected to follow suit.

The negative sentiment spilled over to 10 stocks, predominantly retailers, with the tariff threats seen to pose pressures on their profit margins. In this article, we have detailed the reasons behind their declines.

To come up with Tuesday’s worst performers, we considered only the stocks with $2 billion in market capitalization and $5 million in daily trading volume.

A modern looking financial adviser sitting in front of a trading monitor, gesturing to a group of investors.

KKR & Co. Inc. (NYSE:KKR)

KKR & Co. Inc. (NYSE:KKR) dropped its share prices by 9.19 percent on Tuesday to end at $120.78 apiece as investor sentiment turned cautious over the company’s planned $1.5-billion mandatory convertible preferred stock offering.

In a statement, KKR & Co. Inc. (NYSE:KKR) said it has commenced offering 30 million of its Series D Mandatory Convertible Preferred Stock with a par value of $0.01 per share.

The company said it intends to use the net proceeds for the acquisition of additional equity interests in core private equity portfolio companies reported in its Strategic Holdings segment and for other general corporate purposes.

In usual cases, the offering of mandatory convertible preferred stock can result in the dilution of existing shares as the conversion would increase the total number of outstanding shares, thereby disappointing investors.

Overall KKR ranks 2nd on our list of Tuesday's worst performers. While we acknowledge the potential of KKR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than KKR but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

 

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Disclosure: None. This article is originally published at Insider Monkey.