JPMorgan Chase & Co. Cuts KKR Real Estate Finance Trust (NYSE:KREF) Price Target to $7.50

Key Points

• JPMorgan Chase & Co. lowered its price target on KKR Real Estate Finance Trust (NYSE: KREF) from $8.00 to $7.50 and kept an underweight rating on the stock.
• The broader analyst view remains cautious: KREF now has an average rating of "Reduce" and an average price target of $8.80, with more analysts rating it Hold or Sell than Buy.
• KKR Real Estate Finance Trust recently reported quarterly EPS of ($0.58), slightly worse than estimates, though revenue came in above expectations at $29.34 million.

KKR Real Estate Finance Trust (NYSE:KREF - Get Free Report) had its price target dropped by investment analysts at JPMorgan Chase & Co. from $8.00 to $7.50 in a research report issued to clients and investors on Friday,Benzinga reports. The firm currently has an "underweight" rating on the stock. JPMorgan Chase & Co.'s target price suggests a potential upside of 1.28% from the stock's current price.

Several other research firms have also recently weighed in on KREF. Keefe, Bruyette & Woods raised their price objective on shares of KKR Real Estate Finance Trust from $6.50 to $7.00 and gave the company a "market perform" rating in a research report on Thursday. Zacks Research upgraded shares of KKR Real Estate Finance Trust from a "strong sell" rating to a "hold" rating in a research report on Friday, July 10th. Weiss Ratings reissued a "sell (d)" rating on shares of KKR Real Estate Finance Trust in a research note on Friday, July 17th. Citizens Jmp lowered shares of KKR Real Estate Finance Trust from an "outperform" rating to a "market perform" rating in a report on Monday, April 27th. Finally, Wall Street Zen cut shares of KKR Real Estate Finance Trust from a "sell" rating to a "strong sell" rating in a research report on Sunday, July 12th. One investment analyst has rated the stock with a Buy rating, five have issued a Hold rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat, KKR Real Estate Finance Trust presently has an average rating of "Reduce" and an average price target of $8.80.

KKR Real Estate Finance Trust Price Performance

Shares of KREF stock traded up $0.27 during trading hours on Friday, hitting $7.41. 965,734 shares of the company's stock were exchanged, compared to its average volume of 1,301,553. The stock's 50-day moving average is $6.99 and its 200-day moving average is $7.00. The company has a debt-to-equity ratio of 4.36, a current ratio of 407.64 and a quick ratio of 407.64. The stock has a market cap of $433.77 million, a price-to-earnings ratio of -2.25 and a beta of 0.82. KKR Real Estate Finance Trust has a 52 week low of $5.25 and a 52 week high of $9.98.

KKR Real Estate Finance Trust (NYSE:KREF - Get Free Report) last announced its earnings results on Tuesday, July 21st. The company reported ($0.58) earnings per share for the quarter, missing analysts' consensus estimates of ($0.56) by ($0.02). KKR Real Estate Finance Trust had a negative net margin of 47.33% and a negative return on equity of 1.53%. The business had revenue of $29.34 million during the quarter, compared to analyst estimates of $24.97 million. As a group, research analysts forecast that KKR Real Estate Finance Trust will post -1.39 EPS for the current year.

Institutional Investors Weigh In On KKR Real Estate Finance Trust

A number of institutional investors have recently made changes to their positions in KREF. Millennium Management LLC lifted its stake in KKR Real Estate Finance Trust by 25.9% in the first quarter. Millennium Management LLC now owns 353,216 shares of the company's stock valued at $3,815,000 after buying an additional 72,566 shares during the period. Caxton Associates LLP acquired a new position in shares of KKR Real Estate Finance Trust during the 1st quarter worth about $288,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its stake in shares of KKR Real Estate Finance Trust by 317.2% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 204,589 shares of the company's stock valued at $2,210,000 after acquiring an additional 155,553 shares during the last quarter. Jane Street Group LLC increased its stake in shares of KKR Real Estate Finance Trust by 72.1% in the 1st quarter. Jane Street Group LLC now owns 172,162 shares of the company's stock valued at $1,859,000 after acquiring an additional 72,140 shares during the last quarter. Finally, Acadian Asset Management LLC bought a new stake in shares of KKR Real Estate Finance Trust in the 1st quarter valued at about $66,000. 70.23% of the stock is owned by institutional investors and hedge funds.

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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