KKR Real Estate Finance Trust (NYSE:KREF) Downgraded to Underweight Rating by JPMorgan Chase & Co.

Key Points

• JPMorgan Chase & Co. downgraded KKR Real Estate Finance Trust from neutral to underweight and kept a $6.00 price target, implying about 21% downside from the prior close.
• Other analysts have also turned cautious on KREF, with several recent downgrades and price-target cuts. MarketBeat data shows a consensus rating of “Reduce” and an average price target of $8.30.
• The company recently reported weaker-than-expected results, posting EPS of -$0.06 versus the $0.11 estimate and revenue of $20.89 million versus expectations of $28.76 million.

KKR Real Estate Finance Trust (NYSE:KREF - Get Free Report) was downgraded by JPMorgan Chase & Co. from a "neutral" rating to an "underweight" rating in a report issued on Friday, MarketBeat reports. They presently have a $6.00 price objective on the stock. JPMorgan Chase & Co.'s target price points to a potential downside of 21.08% from the company's previous close.

A number of other research firms also recently issued reports on KREF. Citigroup downgraded shares of KKR Real Estate Finance Trust from a "neutral" rating to a "market perform" rating in a report on Monday, April 27th. Keefe, Bruyette & Woods decreased their price target on shares of KKR Real Estate Finance Trust from $7.00 to $6.00 and set a "market perform" rating on the stock in a report on Friday, April 24th. Wall Street Zen downgraded KKR Real Estate Finance Trust from a "sell" rating to a "strong sell" rating in a report on Sunday, July 12th. Weiss Ratings reaffirmed a "sell (d)" rating on shares of KKR Real Estate Finance Trust in a research report on Tuesday, April 21st. Finally, Wells Fargo & Company lowered their price target on KKR Real Estate Finance Trust from $9.00 to $7.00 and set an "overweight" rating for the company in a research report on Tuesday, April 28th. One analyst has rated the stock with a Buy rating, five have assigned a Hold rating and two have issued a Sell rating to the company's stock. Based on data from MarketBeat, the company presently has a consensus rating of "Reduce" and a consensus price target of $8.30.

KKR Real Estate Finance Trust Stock Performance

NYSE KREF opened at $7.60 on Friday. The business's 50-day moving average price is $6.90 and its 200 day moving average price is $7.03. The company has a current ratio of 407.64, a quick ratio of 407.64 and a debt-to-equity ratio of 3.90. KKR Real Estate Finance Trust has a twelve month low of $5.25 and a twelve month high of $9.98. The company has a market capitalization of $488.87 million, a PE ratio of -4.09 and a beta of 0.82.

KKR Real Estate Finance Trust (NYSE:KREF - Get Free Report) last posted its quarterly earnings results on Wednesday, April 22nd. The company reported ($0.06) EPS for the quarter, missing the consensus estimate of $0.11 by ($0.17). The business had revenue of $20.89 million during the quarter, compared to analysts' expectations of $28.76 million. KKR Real Estate Finance Trust had a negative net margin of 23.55% and a negative return on equity of 0.78%. On average, research analysts predict that KKR Real Estate Finance Trust will post -1.63 earnings per share for the current year.

Insider Activity

In related news, CEO Matthew A. Salem bought 60,000 shares of the stock in a transaction dated Friday, April 24th. The stock was acquired at an average price of $6.04 per share, for a total transaction of $362,400.00. Following the completion of the purchase, the chief executive officer owned 703,075 shares in the company, valued at $4,246,573. This represents a 9.33% increase in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, COO W Patrick Mattson bought 40,000 shares of the stock in a transaction dated Friday, April 24th. The stock was bought at an average price of $6.03 per share, with a total value of $241,200.00. Following the purchase, the chief operating officer owned 500,287 shares of the company's stock, valued at approximately $3,016,730.61. This represents a 8.69% increase in their position. The disclosure for this purchase is available in the SEC filing. Company insiders own 2.12% of the company's stock.

Hedge Funds Weigh In On KKR Real Estate Finance Trust

Several hedge funds and other institutional investors have recently bought and sold shares of KREF. Conversant Capital LLC acquired a new stake in KKR Real Estate Finance Trust in the first quarter valued at approximately $9,000,000. Nomura Holdings Inc. purchased a new position in shares of KKR Real Estate Finance Trust in the third quarter valued at $5,212,000. Balyasny Asset Management L.P. boosted its stake in shares of KKR Real Estate Finance Trust by 368.5% in the second quarter. Balyasny Asset Management L.P. now owns 536,084 shares of the company's stock valued at $4,701,000 after purchasing an additional 421,657 shares during the period. Invesco Ltd. boosted its stake in shares of KKR Real Estate Finance Trust by 92.2% in the second quarter. Invesco Ltd. now owns 841,503 shares of the company's stock valued at $7,380,000 after purchasing an additional 403,660 shares during the period. Finally, Compass Rose Asset Management LP acquired a new stake in KKR Real Estate Finance Trust during the 4th quarter valued at $2,754,000. 70.23% of the stock is owned by institutional investors and hedge funds.

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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