KKR Real Estate Finance Trust (NYSE:KREF) Raised to "Sell" at Wall Street Zen

Key Points

• Wall Street Zen raised KKR Real Estate Finance Trust from “strong sell” to “sell,” but the broader analyst view remains cautious with a consensus rating of “Reduce” and an average price target of $8.40.
• The company’s latest quarterly results were weak: KREF reported -$0.06 EPS, missing estimates, and revenue of $20.89 million versus expectations of $28.76 million.
• Despite the negative fundamentals, company insiders were buying shares, with CEO Matthew A. Salem and COO W. Patrick Mattson making sizable purchases in late April.

KKR Real Estate Finance Trust (NYSE:KREF - Get Free Report) was upgraded by research analysts at Wall Street Zen from a "strong sell" rating to a "sell" rating in a note issued to investors on Saturday.

Other analysts also recently issued research reports about the stock. Citizens Jmp downgraded shares of KKR Real Estate Finance Trust from an "outperform" rating to a "market perform" rating in a research report on Monday, April 27th. Keefe, Bruyette & Woods cut 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. Weiss Ratings reaffirmed a "sell (d)" rating on shares of KKR Real Estate Finance Trust in a report on Tuesday, April 21st. Zacks Research downgraded shares of KKR Real Estate Finance Trust from a "hold" rating to a "strong sell" rating in a research note on Monday, May 11th. Finally, Citigroup lowered shares of KKR Real Estate Finance Trust from a "neutral" rating to a "market perform" rating in a report on Monday, April 27th. One equities research analyst has rated the stock with a Buy rating, five have given a Hold rating and two have issued a Sell rating to the company's stock. Based on data from MarketBeat.com, KKR Real Estate Finance Trust currently has a consensus rating of "Reduce" and an average target price of $8.40.

KKR Real Estate Finance Trust Trading Up 0.2%

Shares of KREF opened at $7.08 on Friday. The company has a market capitalization of $454.92 million, a P/E ratio of -3.80 and a beta of 0.84. KKR Real Estate Finance Trust has a one year low of $5.25 and a one year high of $9.98. The company has a debt-to-equity ratio of 3.90, a quick ratio of 407.64 and a current ratio of 407.64. The stock has a 50-day moving average price of $6.62 and a 200 day moving average price of $7.23.

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

Insider Activity at KKR Real Estate Finance Trust

In other news, CEO Matthew A. Salem purchased 60,000 shares of the company's stock in a transaction that occurred on Friday, April 24th. The shares were acquired at an average cost of $6.04 per share, with a total value of $362,400.00. Following the transaction, the chief executive officer owned 703,075 shares in the company, valued at approximately $4,246,573. The trade was a 9.33% increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, COO W Patrick Mattson purchased 40,000 shares of the company's stock in a transaction that occurred on Friday, April 24th. The shares were purchased at an average cost of $6.03 per share, for a total transaction of $241,200.00. Following the completion of the transaction, the chief operating officer owned 500,287 shares in the company, valued at approximately $3,016,730.61. This represents a 8.69% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. 2.12% of the stock is currently owned by company insiders.

Institutional Trading of KKR Real Estate Finance Trust

Institutional investors have recently added to or reduced their stakes in the business. Millennium Management LLC grew 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 worth $3,815,000 after buying an additional 72,566 shares during the last quarter. Caxton Associates LLP acquired a new stake in KKR Real Estate Finance Trust in the first quarter worth $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% in the first 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 buying an additional 155,553 shares during the last quarter. Jane Street Group LLC lifted its stake in KKR Real Estate Finance Trust by 72.1% in the first quarter. Jane Street Group LLC now owns 172,162 shares of the company's stock valued at $1,859,000 after buying an additional 72,140 shares during the last quarter. Finally, Acadian Asset Management LLC acquired a new position in shares of KKR Real Estate Finance Trust during the first quarter valued at $66,000. Institutional investors own 70.23% of the company's stock.

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.

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