Kennedy-Wilson (NYSE:KW) Shares Down 5.2% - Should You Sell?

Key Points

• Kennedy-Wilson shares fell by 5.2%, trading as low as $7.94, with a notable drop in trading volume, down 65% from the daily average.
• Analysts have mixed views on Kennedy-Wilson, with Weiss Ratings giving a "sell" rating while Wall Street Zen upgraded it to a "buy," leading to an average rating of "Reduce" with a target price of $9.00.
• The company announced a quarterly dividend of $0.12 per share, representing an annualized yield of 6.1%, although it faces a negative payout ratio of -71.64%.

Kennedy-Wilson Holdings Inc. (NYSE:KW - Get Free Report) shares dropped 5.2% on Monday . The company traded as low as $7.97 and last traded at $7.94. Approximately 303,774 shares were traded during mid-day trading, a decline of 65% from the average daily volume of 864,746 shares. The stock had previously closed at $8.37.

Analyst Upgrades and Downgrades

Several analysts have recently weighed in on KW shares. Weiss Ratings restated a "sell (d+)" rating on shares of Kennedy-Wilson in a research report on Saturday, September 27th. Wall Street Zen upgraded Kennedy-Wilson from a "sell" rating to a "buy" rating in a report on Saturday, August 9th. One research analyst has rated the stock with a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock presently has an average rating of "Reduce" and an average target price of $9.00.

Kennedy-Wilson Stock Down 6.2%

The stock has a market capitalization of $1.08 billion, a P/E ratio of -11.72, a PEG ratio of 2.66 and a beta of 1.18. The stock has a 50 day moving average price of $8.28 and a 200-day moving average price of $7.43. The company has a debt-to-equity ratio of 5.73, a current ratio of 0.97 and a quick ratio of 0.97.

Kennedy-Wilson (NYSE:KW - Get Free Report) last issued its earnings results on Wednesday, August 6th. The financial services provider reported $0.17 earnings per share for the quarter, beating the consensus estimate of $0.07 by $0.10. The company had revenue of $135.70 million during the quarter, compared to analysts' expectations of $229.98 million. Kennedy-Wilson had a positive return on equity of 12.90% and a negative net margin of 9.11%. As a group, research analysts expect that Kennedy-Wilson Holdings Inc. will post 2.87 EPS for the current fiscal year.

Kennedy-Wilson Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, October 9th. Shareholders of record on Tuesday, September 30th will be given a dividend of $0.12 per share. The ex-dividend date of this dividend is Tuesday, September 30th. This represents a $0.48 annualized dividend and a yield of 6.1%. Kennedy-Wilson's dividend payout ratio is presently -71.64%.

Hedge Funds Weigh In On Kennedy-Wilson

Several hedge funds and other institutional investors have recently modified their holdings of KW. New York State Teachers Retirement System increased its holdings in Kennedy-Wilson by 12.3% during the 1st quarter. New York State Teachers Retirement System now owns 30,100 shares of the financial services provider's stock valued at $261,000 after purchasing an additional 3,300 shares during the period. GAMMA Investing LLC grew its position in shares of Kennedy-Wilson by 495.9% in the 1st quarter. GAMMA Investing LLC now owns 34,208 shares of the financial services provider's stock worth $297,000 after buying an additional 28,467 shares during the last quarter. Principal Financial Group Inc. increased its stake in shares of Kennedy-Wilson by 2.7% during the first quarter. Principal Financial Group Inc. now owns 588,232 shares of the financial services provider's stock valued at $5,106,000 after buying an additional 15,379 shares during the period. GSA Capital Partners LLP raised its holdings in shares of Kennedy-Wilson by 233.1% during the first quarter. GSA Capital Partners LLP now owns 141,261 shares of the financial services provider's stock valued at $1,226,000 after acquiring an additional 98,848 shares in the last quarter. Finally, Teacher Retirement System of Texas purchased a new stake in Kennedy-Wilson in the first quarter worth $139,000. 87.72% of the stock is owned by institutional investors.

Kennedy-Wilson Company Profile

Kennedy-Wilson Holdings, Inc, together with its subsidiaries, operates as a real estate investment company. The company owns, operates, and invests in real estate both on its own and through its investment management platform. It focuses on multifamily and office properties located in the Western United States, the United Kingdom, Ireland, Spain, Italy, and Japan.

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