Insider Buying: KKR Real Estate Finance Trust (NYSE:KREF) CEO Acquires 60,000 Shares of Stock

Key Points

• KKR Real Estate Finance Trust CEO Matthew Salem purchased 60,000 shares on April 24 at an average price of $6.04 ($362,400), increasing his direct stake to 703,075 shares (a 9.33% boost).
• The company missed on results, reporting EPS of -$0.06 versus $0.11 expected and revenue of $20.89M versus $28.76M, and declared a quarterly dividend of $0.10 (annualized $0.40) representing a 6.8% yield despite negative payout metrics.
• Shares traded around $5.88 (below the 50- and 200-day averages) with a market cap near $378M, and analysts hold mixed views with an average target price of $8.80.

KKR Real Estate Finance Trust (NYSE:KREF - Get Free Report) CEO Matthew Salem acquired 60,000 shares of KKR Real Estate Finance Trust stock in a transaction dated Friday, April 24th. The shares were acquired at an average cost of $6.04 per share, with a total value of $362,400.00. Following the completion of the acquisition, the chief executive officer directly owned 703,075 shares in the company, valued at $4,246,573. This trade represents a 9.33% increase in their position. The purchase was disclosed in a document filed with the SEC, which is accessible through this link.

KKR Real Estate Finance Trust Price Performance

Shares of NYSE:KREF traded down $0.14 during midday trading on Monday, reaching $5.88. 2,959,790 shares of the company's stock were exchanged, compared to its average volume of 1,399,394. The company's 50 day simple moving average is $6.62 and its two-hundred day simple moving average is $7.68. The firm has a market capitalization of $377.76 million, a PE ratio of -3.16 and a beta of 0.91. 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 debt-to-equity ratio of 3.90, a quick ratio of 407.64 and a current ratio of 407.64.

KKR Real Estate Finance Trust (NYSE:KREF - Get Free Report) last released its quarterly earnings data on Wednesday, April 22nd. The company reported ($0.06) EPS for the quarter, missing analysts' consensus estimates 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 business had revenue of $20.89 million for the quarter, compared to the consensus estimate of $28.76 million. Equities research analysts expect that KKR Real Estate Finance Trust will post 0.11 earnings per share for the current fiscal year.

KKR Real Estate Finance Trust Cuts Dividend

The company 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. This represents a $0.40 annualized dividend and a yield of 6.8%. The ex-dividend date of this dividend is Tuesday, June 30th. KKR Real Estate Finance Trust's dividend payout ratio (DPR) is currently -53.76%.

Institutional Investors Weigh In On KKR Real Estate Finance Trust

Several institutional investors have recently modified their holdings of KREF. Hantz Financial Services Inc. grew its position in shares of KKR Real Estate Finance Trust by 210.5% during the 4th quarter. Hantz Financial Services Inc. now owns 3,099 shares of the company's stock worth $25,000 after buying an additional 2,101 shares during the period. PNC Financial Services Group Inc. grew its position in shares of KKR Real Estate Finance Trust by 178.3% during the 4th quarter. PNC Financial Services Group Inc. now owns 3,537 shares of the company's stock worth $29,000 after buying an additional 2,266 shares during the period. Geneos Wealth Management Inc. grew its position in shares of KKR Real Estate Finance Trust by 100.0% during the 2nd quarter. Geneos Wealth Management Inc. now owns 3,450 shares of the company's stock worth $30,000 after buying an additional 1,725 shares during the period. EverSource Wealth Advisors LLC grew its position in shares of KKR Real Estate Finance Trust by 742.0% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 4,151 shares of the company's stock worth $36,000 after buying an additional 3,658 shares during the period. Finally, Cloud Capital Management LLC acquired a new stake in shares of KKR Real Estate Finance Trust during the 3rd quarter worth approximately $48,000. Institutional investors and hedge funds own 70.23% of the company's stock.

Analyst Upgrades and Downgrades

Several equities analysts recently issued reports on the stock. Wall Street Zen downgraded shares of KKR Real Estate Finance Trust from a "hold" rating to a "sell" rating in a report on Saturday, April 18th. Citigroup cut shares of KKR Real Estate Finance Trust from a "neutral" rating to a "market perform" rating in a research report on Monday. JPMorgan Chase & Co. lowered their price objective on shares of KKR Real Estate Finance Trust from $8.00 to $6.50 and set a "neutral" rating for the company in a research report on Thursday, April 16th. Wells Fargo & Company lowered their price objective on shares of KKR Real Estate Finance Trust from $10.00 to $9.00 and set an "overweight" rating for the company in a research report on Thursday, February 5th. Finally, Weiss Ratings restated a "sell (d)" rating on shares of KKR Real Estate Finance Trust in a research report on Tuesday, April 21st. One investment analyst has rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock currently has an average rating of "Hold" and an average target price of $8.80.

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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