Compass Rose Asset Management LP Takes Position in KKR Real Estate Finance Trust $KREF

Key Points

• Compass Rose Asset Management initiated a new position in KKR Real Estate Finance Trust, buying 335,000 shares valued at about $2.75 million in the fourth quarter. The stake represents 0.2% of its portfolio and makes KREF its 19th largest holding.
• Insiders bought shares after the stock’s recent weakness: COO W. Patrick Mattson purchased 40,000 shares and CEO Matthew A. Salem bought 60,000 shares, both at around $6.03–$6.04 per share.
• Analysts and fundamentals remain pressured, with several firms cutting ratings or price targets and the consensus rating now at “Reduce.” The company also reported a quarterly loss and cut its dividend to $0.10 per share, though the stock was up 4.1% and traded around $7.05.

Compass Rose Asset Management LP bought a new stake in KKR Real Estate Finance Trust (NYSE:KREF - Free Report) in the 4th quarter, according to its most recent 13F filing with the SEC. The firm bought 335,000 shares of the company's stock, valued at approximately $2,754,000. KKR Real Estate Finance Trust accounts for 0.2% of Compass Rose Asset Management LP's holdings, making the stock its 19th largest holding. Compass Rose Asset Management LP owned 0.52% of KKR Real Estate Finance Trust at the end of the most recent reporting period.

Several other large investors also recently made changes to their positions in the company. Geneos Wealth Management Inc. grew its stake in shares of KKR Real Estate Finance Trust by 100.0% in the 2nd quarter. Geneos Wealth Management Inc. now owns 3,450 shares of the company's stock valued at $30,000 after buying an additional 1,725 shares during the period. Cura Wealth Advisors LLC raised its position in shares of KKR Real Estate Finance Trust by 2.0% during the fourth quarter. Cura Wealth Advisors LLC now owns 100,672 shares of the company's stock worth $828,000 after purchasing an additional 1,976 shares during the period. Hantz Financial Services Inc. raised its position in shares of KKR Real Estate Finance Trust by 210.5% during the fourth quarter. Hantz Financial Services Inc. now owns 3,099 shares of the company's stock worth $25,000 after purchasing an additional 2,101 shares during the period. Tower Research Capital LLC TRC raised its position in shares of KKR Real Estate Finance Trust by 64.1% during the second quarter. Tower Research Capital LLC TRC now owns 5,732 shares of the company's stock worth $50,000 after purchasing an additional 2,238 shares during the period. Finally, PNC Financial Services Group Inc. raised its position in shares of KKR Real Estate Finance Trust by 178.3% during the fourth quarter. PNC Financial Services Group Inc. now owns 3,537 shares of the company's stock worth $29,000 after purchasing an additional 2,266 shares during the period. 70.23% of the stock is currently owned by institutional investors and hedge funds.

Insider Buying and Selling at KKR Real Estate Finance Trust

In related news, COO W Patrick Mattson purchased 40,000 shares of the firm's stock in a transaction that occurred on Friday, April 24th. The stock was acquired at an average price of $6.03 per share, for a total transaction of $241,200.00. Following the completion of the acquisition, the chief operating officer owned 500,287 shares of the company's stock, valued at $3,016,730.61. This represents a 8.69% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Matthew A. Salem purchased 60,000 shares of the firm's stock in a transaction that occurred on Friday, April 24th. The shares were bought at an average price of $6.04 per share, with a total value of $362,400.00. Following the acquisition, the chief executive officer directly owned 703,075 shares of the company's stock, valued at $4,246,573. This represents a 9.33% increase in their position. The disclosure for this purchase is available in the SEC filing. Corporate insiders own 2.12% of the company's stock.

Analyst Ratings Changes

A number of brokerages have recently weighed in on KREF. Citizens Jmp lowered KKR Real Estate Finance Trust from an "outperform" rating to a "market perform" rating in a research report on Monday, April 27th. Citigroup lowered KKR Real Estate Finance Trust from a "neutral" rating to a "market perform" rating in a research report on Monday, April 27th. BTIG Research lowered KKR Real Estate Finance Trust from a "buy" rating to a "neutral" rating in a research report on Thursday, February 5th. Keefe, Bruyette & Woods lowered their target price on KKR Real Estate Finance Trust from $7.00 to $6.00 and set a "market perform" rating on the stock in a research report on Friday, April 24th. Finally, Wells Fargo & Company lowered their target price on KKR Real Estate Finance Trust from $9.00 to $7.00 and set an "overweight" rating on the stock in a research report on Tuesday, April 28th. One analyst has rated the stock with a Buy rating, five have assigned a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Reduce" and an average price target of $8.40.

KKR Real Estate Finance Trust Trading Up 4.1%

Shares of KKR Real Estate Finance Trust stock opened at $7.05 on Friday. The stock has a fifty day simple moving average of $6.43 and a 200 day simple moving average of $7.32. KKR Real Estate Finance Trust has a 12-month low of $5.25 and a 12-month high of $9.98. The company has a market capitalization of $452.99 million, a P/E ratio of -3.79 and a beta of 0.84. The company has a current ratio of 407.64, a quick ratio of 407.64 and a debt-to-equity ratio of 3.90.

KKR Real Estate Finance Trust (NYSE:KREF - Get Free Report) last announced its quarterly earnings results on Wednesday, April 22nd. The company reported ($0.06) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.11 by ($0.17). KKR Real Estate Finance Trust had a negative return on equity of 0.78% and a negative net margin of 23.55%.The company had revenue of $20.89 million for the quarter, compared to the consensus estimate of $28.76 million. On average, sell-side analysts anticipate that KKR Real Estate Finance Trust will post -1.63 earnings per share for the current fiscal year.

KKR Real Estate Finance Trust Cuts Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, July 15th. Investors of record on Tuesday, June 30th will be issued a dividend of $0.10 per share. The ex-dividend date is Tuesday, June 30th. This represents a $0.40 annualized dividend and a yield of 5.7%. KKR Real Estate Finance Trust's dividend payout ratio is -21.51%.

KKR Real Estate Finance Trust Company Profile

KKR Real Estate Finance Trust, Inc NYSE: KREF is a mortgage real estate investment trust sponsored by KKR & Co Inc The company focuses on originating, acquiring, financing and managing a diversified portfolio of commercial real estate debt and real estate-related assets across the United States and select European markets.

The trust's investment strategy is centered on lending to high-quality office, industrial, retail, multifamily and hotel properties. Its portfolio primarily consists of senior mortgage loans, mezzanine loans, floating-rate debt securities and preferred equity positions.

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