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

Key Points

• Wall Street Zen cut KKR Real Estate Finance Trust from "sell" to "strong sell", adding to a broadly cautious analyst view of the stock.
• Other firms have also turned more defensive, with multiple price-target cuts and downgrades; the overall consensus now sits at "Reduce" with an average target price of $8.40.
• The company recently missed earnings expectations, reporting a loss of $0.06 per share versus the expected profit, while revenue also came in below estimates.

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

Several other research firms have also weighed in on KREF. JPMorgan Chase & Co. lowered their target price on shares of KKR Real Estate Finance Trust from $8.00 to $6.50 and set a "neutral" rating for the company in a research note on Thursday, April 16th. Keefe, Bruyette & Woods reduced 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 research report on Friday, April 24th. Wells Fargo & Company decreased their price target on shares of KKR Real Estate Finance Trust from $9.00 to $7.00 and set an "overweight" rating for the company in a report on Tuesday, April 28th. Citigroup downgraded shares of KKR Real Estate Finance Trust from a "neutral" rating to a "market perform" rating in a research report on Monday, April 27th. Finally, Citizens Jmp lowered 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 research 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. According to data from MarketBeat, KKR Real Estate Finance Trust presently has an average rating of "Reduce" and an average target price of $8.40.

KKR Real Estate Finance Trust Stock Performance

Shares of KREF traded up $0.14 during mid-day trading on Friday, hitting $7.37. The stock had a trading volume of 711,096 shares, compared to its average volume of 910,611. The company has a market cap of $473.57 million, a PE ratio of -3.96 and a beta of 0.82. The company's fifty day simple moving average is $6.82 and its two-hundred day simple moving average is $7.07. The company has a quick ratio of 407.64, a current ratio of 407.64 and a debt-to-equity ratio of 3.90. KKR Real Estate Finance Trust has a fifty-two week low of $5.25 and a fifty-two week high of $9.98.

KKR Real Estate Finance Trust (NYSE:KREF - Get Free Report) last issued its quarterly earnings results 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). The firm had revenue of $20.89 million during the quarter, compared to the consensus estimate 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, equities analysts expect that KKR Real Estate Finance Trust will post -1.63 earnings per share for the current year.

Insider Buying and Selling at KKR Real Estate Finance Trust

In related news, COO W Patrick Mattson bought 40,000 shares of the business's stock in a transaction on Friday, April 24th. The shares were bought at an average cost of $6.03 per share, for a total transaction of $241,200.00. Following the completion of the purchase, the chief operating officer owned 500,287 shares of the company's stock, valued at $3,016,730.61. This represents a 8.69% increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Matthew A. Salem purchased 60,000 shares of KKR Real Estate Finance Trust stock in a transaction dated Friday, April 24th. The shares were purchased at an average cost of $6.04 per share, with a total value of $362,400.00. Following the acquisition, the chief executive officer owned 703,075 shares of the company's stock, valued at approximately $4,246,573. This trade represents a 9.33% increase in their position. The SEC filing for this purchase provides additional information. 2.12% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the company. Conversant Capital LLC bought a new position in KKR Real Estate Finance Trust in the 1st quarter worth about $9,000,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its holdings in shares of KKR Real Estate Finance Trust by 7.7% during the third quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 1,201,066 shares of the company's stock valued at $10,810,000 after buying an additional 85,411 shares during the last quarter. Invesco Ltd. boosted its position in shares of KKR Real Estate Finance Trust by 36.2% during the third quarter. Invesco Ltd. now owns 1,145,916 shares of the company's stock worth $10,313,000 after buying an additional 304,413 shares during the period. Charles Schwab Investment Management Inc. boosted its position in shares of KKR Real Estate Finance Trust by 10.7% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 1,002,949 shares of the company's stock worth $8,244,000 after buying an additional 96,947 shares during the period. Finally, Nomura Holdings Inc. bought a new position in KKR Real Estate Finance Trust in the 3rd quarter worth approximately $5,212,000. 70.23% of the stock is 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.