KE Sees Unusually Large Options Volume (NYSE:BEKE)

Key Points

• Traders purchased 20,045 put options on KE on Wednesday, about a 464% increase versus the average daily put volume of 3,553, indicating unusually heavy bearish options activity.
• Several firms have downgraded KE (Goldman Sachs cut to "neutral" with a $19 target; Wall Street Zen to "sell"), yet MarketBeat's consensus remains a "Moderate Buy" with a $21.63 price target.
• KE announced an annual dividend of $0.276 payable April 24 (record April 8), which the report lists as an unusually high 167.0% yield with a payout ratio of 86.11%.

KE Holdings Inc. Sponsored ADR (NYSE:BEKE - Get Free Report) was the target of some unusual options trading activity on Wednesday. Stock traders acquired 20,045 put options on the company. This is an increase of approximately 464% compared to the average daily volume of 3,553 put options.

Analyst Ratings Changes

Several brokerages have recently weighed in on BEKE. The Goldman Sachs Group cut KE from a "buy" rating to a "neutral" rating and set a $19.00 price objective for the company. in a report on Monday, February 2nd. Barclays set a $23.00 price target on KE in a research report on Thursday, February 19th. Wall Street Zen downgraded KE from a "hold" rating to a "sell" rating in a report on Sunday. Finally, Weiss Ratings restated a "hold (c+)" rating on shares of KE in a report on Monday, December 22nd. Four analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company's stock. According to MarketBeat.com, KE currently has an average rating of "Moderate Buy" and a consensus price target of $21.63.

Institutional Investors Weigh In On KE

Hedge funds and other institutional investors have recently modified their holdings of the company. Wellington Management Group LLP grew its stake in shares of KE by 4.5% in the third quarter. Wellington Management Group LLP now owns 12,112,097 shares of the company's stock valued at $230,130,000 after acquiring an additional 521,313 shares in the last quarter. Norges Bank acquired a new stake in KE in the 4th quarter worth about $112,843,000. Legal & General Group Plc boosted its holdings in KE by 6.0% in the 2nd quarter. Legal & General Group Plc now owns 4,708,163 shares of the company's stock valued at $83,521,000 after purchasing an additional 265,429 shares during the period. Baird Financial Group Inc. boosted its holdings in KE by 29.5% in the 2nd quarter. Baird Financial Group Inc. now owns 3,437,864 shares of the company's stock valued at $60,988,000 after purchasing an additional 783,938 shares during the period. Finally, Bank of America Corp DE grew its position in shares of KE by 76.3% during the 3rd quarter. Bank of America Corp DE now owns 3,067,917 shares of the company's stock worth $58,290,000 after purchasing an additional 1,327,775 shares in the last quarter. Institutional investors and hedge funds own 39.34% of the company's stock.

KE Stock Performance

BEKE stock traded up $0.28 during mid-day trading on Wednesday, hitting $15.72. 1,915,559 shares of the company were exchanged, compared to its average volume of 4,899,905. KE has a 1-year low of $15.18 and a 1-year high of $22.25. The stock has a market capitalization of $17.76 billion, a PE ratio of 43.68, a price-to-earnings-growth ratio of 2.57 and a beta of -0.62. The business has a 50 day simple moving average of $17.39 and a 200-day simple moving average of $17.53. The company has a current ratio of 2.95, a quick ratio of 3.02 and a debt-to-equity ratio of 0.01.

KE Announces Dividend

The company also recently disclosed an annual dividend, which will be paid on Friday, April 24th. Shareholders of record on Wednesday, April 8th will be issued a $0.276 dividend. This represents a yield of 167.0%. The ex-dividend date of this dividend is Wednesday, April 8th. KE's dividend payout ratio is currently 86.11%.

About KE

KE Holdings Inc NYSE: BEKE is a technology-driven real estate services company that operates an integrated online and offline platform for housing transactions and related services in mainland China. The company provides consumer-facing property listing marketplaces alongside a broad network of offline brokerage offices and agents, aiming to facilitate sales, rentals and new-home transactions for individual and institutional clients.

The company’s offerings span property listings for new and resale homes, rental listings, brokerage representation and transaction facilitation.

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