JPMorgan Chase & Co. Lowers KKR Real Estate Finance Trust (NYSE:KREF) Price Target to $6.50

Key Points

• JPMorgan Chase cut its price target for KKR Real Estate Finance Trust from $8.00 to $6.50 and kept a "neutral" rating, implying roughly a 1.9% downside from the recent share price.
• Analysts' consensus is a "Hold" with an average price target of $9.00 (2 Buys, 4 Holds, 1 Sell), showing mixed views despite JPMorgan's reduction.
• Shares traded around $6.63 after KREF reported a beat on EPS ($0.22 vs. $0.14) and revenue, but the firm still shows a negative net margin (‑10.8%) and negative return on equity.

KKR Real Estate Finance Trust (NYSE:KREF - Get Free Report) had its target price lowered by stock analysts at JPMorgan Chase & Co. from $8.00 to $6.50 in a research report issued to clients and investors on Thursday,Benzinga reports. The brokerage currently has a "neutral" rating on the stock. JPMorgan Chase & Co.'s price target would suggest a potential downside of 1.89% from the stock's current price.

Other analysts also recently issued reports about the stock. Wells Fargo & Company reduced their target price on shares of KKR Real Estate Finance Trust from $10.00 to $9.00 and set an "overweight" rating on the stock in a research report on Thursday, February 5th. Citizens Jmp reduced their target price on shares of KKR Real Estate Finance Trust from $10.00 to $9.50 and set a "market outperform" rating on the stock in a research report on Monday, March 23rd. Keefe, Bruyette & Woods reduced their target price on shares of KKR Real Estate Finance Trust from $8.00 to $7.00 and set a "market perform" rating on the stock in a research report on Wednesday, April 8th. Weiss Ratings reaffirmed a "sell (d)" rating on shares of KKR Real Estate Finance Trust in a research report on Thursday, January 22nd. Finally, Zacks Research raised shares of KKR Real Estate Finance Trust from a "strong sell" rating to a "hold" rating in a research report on Friday, April 10th. Two equities research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average price target of $9.00.

KKR Real Estate Finance Trust Stock Down 1.1%

Shares of NYSE:KREF traded down $0.08 during midday trading on Thursday, reaching $6.63. The company's stock had a trading volume of 388,373 shares, compared to its average volume of 1,332,059. The firm has a 50 day moving average of $6.71 and a 200-day moving average of $7.80. The firm has a market capitalization of $425.86 million, a P/E ratio of -6.31 and a beta of 0.91. The company has a quick ratio of 407.64, a current ratio of 407.64 and a debt-to-equity ratio of 3.83. KKR Real Estate Finance Trust has a 12-month low of $5.87 and a 12-month high of $9.98.

KKR Real Estate Finance Trust (NYSE:KREF - Get Free Report) last released its earnings results on Tuesday, February 3rd. The company reported $0.22 earnings per share for the quarter, topping analysts' consensus estimates of $0.14 by $0.08. The firm had revenue of $32.72 million for the quarter, compared to the consensus estimate of $26.06 million. KKR Real Estate Finance Trust had a negative net margin of 10.80% and a negative return on equity of 1.13%. On average, research analysts anticipate that KKR Real Estate Finance Trust will post 1.05 earnings per share for the current year.

Hedge Funds Weigh In On KKR Real Estate Finance Trust

A number of hedge funds have recently bought and sold shares of KREF. Millennium Management LLC lifted its stake in KKR Real Estate Finance Trust by 25.9% during the 1st quarter. Millennium Management LLC now owns 353,216 shares of the company's stock valued at $3,815,000 after acquiring an additional 72,566 shares during the period. Caxton Associates LLP bought a new position in KKR Real Estate Finance Trust during the 1st quarter valued at about $288,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its stake in KKR Real Estate Finance Trust by 317.2% during 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 period. Jane Street Group LLC lifted its stake in KKR Real Estate Finance Trust by 72.1% during 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 period. Finally, Acadian Asset Management LLC bought a new position in KKR Real Estate Finance Trust during the 1st quarter valued at about $66,000. Institutional investors own 70.23% of the company's stock.

About KKR Real Estate Finance Trust

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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