KKR Real Estate Finance Trust (NYSE:KREF) Lowered to "Strong Sell" Rating by Wall Street Zen

Key Points

• Wall Street Zen downgraded KKR Real Estate Finance Trust (NYSE:KREF) from a "sell" to a "strong sell," while other firms have cut targets/ratings; the consensus analyst rating remains a Hold with a $8.40 price target.
• KKR missed recent quarterly expectations, reporting EPS of ($0.06) vs. $0.11 expected and revenue of $20.89M vs. $28.76M, with a negative net margin (~−23.6%) and weak return on equity.
• Contrasting the downgrades, insiders increased positions: CEO Matthew Salem bought 60,000 shares and COO W. Patrick Mattson bought 40,000 shares at roughly $6.03–$6.04, boosting their stakes by about 9% and 8.7% respectively.

KKR Real Estate Finance Trust (NYSE:KREF - Get Free Report) was downgraded by Wall Street Zen from a "sell" rating to a "strong sell" rating in a report released on Saturday.

A number of other research firms have also recently issued reports on KREF. Wells Fargo & Company lowered their target price on KKR Real Estate Finance Trust from $9.00 to $7.00 and set an "overweight" rating for the company in a report on Tuesday. Weiss Ratings reiterated a "sell (d)" rating on shares of KKR Real Estate Finance Trust in a report on Tuesday, April 21st. BTIG Research cut KKR Real Estate Finance Trust from a "buy" rating to a "neutral" rating in a report on Thursday, February 5th. Keefe, Bruyette & Woods lowered their target price on KKR Real Estate Finance Trust from $7.00 to $6.00 and set a "market perform" rating for the company in a report on Friday, April 24th. Finally, Citizens Jmp downgraded shares of KKR Real Estate Finance Trust from an "outperform" rating to a "market perform" rating in a research note on Monday, April 27th. One analyst has rated the stock with a Buy rating, six have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the stock has an average rating of "Hold" and a consensus price target of $8.40.

KKR Real Estate Finance Trust Price Performance

KREF stock opened at $6.33 on Friday. The stock has a 50-day moving average price of $6.56 and a two-hundred day moving average price of $7.63. The stock has a market cap of $407.21 million, a PE ratio of -3.40 and a beta of 0.82. 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 1 year low of $5.25 and a 1 year high of $9.98.

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

Insider Activity

In other news, COO W Patrick Mattson bought 40,000 shares of the business's stock in a transaction that occurred on Friday, April 24th. The stock was acquired at an average cost of $6.03 per share, for a total transaction 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 trade represents a 8.69% increase in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Also, CEO Matthew A. Salem bought 60,000 shares of the business's stock in a transaction that occurred on Friday, April 24th. The stock was purchased at an average price of $6.04 per share, with a total value of $362,400.00. Following the completion of the purchase, the chief executive officer directly owned 703,075 shares in the company, valued at $4,246,573. The trade was a 9.33% 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.

Institutional Investors Weigh In On KKR Real Estate Finance Trust

Several hedge funds have recently bought and sold shares of KREF. Hantz Financial Services Inc. lifted its stake in KKR Real Estate Finance Trust by 210.5% in the 4th quarter. Hantz Financial Services Inc. now owns 3,099 shares of the company's stock valued at $25,000 after purchasing an additional 2,101 shares during the last quarter. PNC Financial Services Group Inc. raised its holdings in KKR Real Estate Finance Trust by 178.3% in the 4th quarter. PNC Financial Services Group Inc. now owns 3,537 shares of the company's stock valued at $29,000 after acquiring an additional 2,266 shares during the period. Geneos Wealth Management Inc. raised its holdings in KKR Real Estate Finance Trust by 100.0% in the 2nd quarter. Geneos Wealth Management Inc. now owns 3,450 shares of the company's stock valued at $30,000 after acquiring an additional 1,725 shares during the period. EverSource Wealth Advisors LLC raised its holdings in KKR Real Estate Finance Trust by 742.0% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 4,151 shares of the company's stock valued at $36,000 after acquiring an additional 3,658 shares during the period. Finally, Fifth Third Bancorp raised its holdings in KKR Real Estate Finance Trust by 5,654.7% in the 1st quarter. Fifth Third Bancorp now owns 6,100 shares of the company's stock valued at $37,000 after acquiring an additional 5,994 shares during the period. 70.23% of the stock is currently 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.