KKR Real Estate Finance Trust (NYSE:KREF) Receives Average Recommendation of "Reduce" from Analysts

Key Points

• Analysts are cautious on KREF: The stock has an average rating of “Reduce” from eight brokerages, with two sell ratings, five holds, and one buy. The average 12-month price target is $8.40.
• Recent earnings were weaker than expected: KKR Real Estate Finance Trust reported EPS of -$0.06 versus estimates of $0.11, and revenue of $20.89 million versus expectations of $28.76 million. Analysts now expect the company to post -$1.09 EPS for the current fiscal year.
• The company cut its dividend: KREF declared a quarterly dividend of $0.10 per share, or $0.40 annualized, yielding about 6.2%. The payment is scheduled for July 15, with the ex-dividend date on June 30.

Shares of KKR Real Estate Finance Trust (NYSE:KREF - Get Free Report) have earned an average rating of "Reduce" from the eight brokerages that are currently covering the company, MarketBeat Ratings reports. Two research analysts have rated the stock with a sell rating, five have given a hold rating and one has given a buy rating to the company. The average 12 month target price among analysts that have issued a report on the stock in the last year is $8.40.

KREF has been the subject of a number of research reports. JPMorgan Chase & Co. decreased their price objective on KKR Real Estate Finance Trust from $8.00 to $6.50 and set a "neutral" rating for the company in a report on Thursday, April 16th. Wells Fargo & Company decreased their price objective 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, April 28th. Citigroup downgraded KKR Real Estate Finance Trust from a "neutral" rating to a "market perform" rating in a report on Monday, April 27th. Citizens Jmp downgraded KKR Real Estate Finance Trust from an "outperform" rating to a "market perform" rating in a report on Monday, April 27th. Finally, Zacks Research downgraded KKR Real Estate Finance Trust from a "hold" rating to a "strong sell" rating in a report on Monday.

Insider Buying and Selling

In related news, CEO Matthew A. Salem purchased 60,000 shares of the firm's stock in a transaction on Friday, April 24th. The stock was purchased at an average cost of $6.04 per share, for a total transaction 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. This trade represents a 9.33% increase in their ownership of the stock. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, COO W Patrick Mattson purchased 40,000 shares of the firm's stock in a transaction on 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 completion of 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 ownership of the stock. The disclosure for this purchase is available in the SEC filing. 2.12% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the stock. Hantz Financial Services Inc. grew its stake in KKR Real Estate Finance Trust by 210.5% in the fourth 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 in the last quarter. PNC Financial Services Group Inc. grew its stake in KKR Real Estate Finance Trust by 178.3% in the fourth quarter. PNC Financial Services Group Inc. now owns 3,537 shares of the company's stock valued at $29,000 after purchasing an additional 2,266 shares in the last quarter. Geneos Wealth Management Inc. grew its stake in KKR Real Estate Finance Trust by 100.0% in the second quarter. Geneos Wealth Management Inc. now owns 3,450 shares of the company's stock valued at $30,000 after purchasing an additional 1,725 shares in the last quarter. EverSource Wealth Advisors LLC grew its stake in KKR Real Estate Finance Trust by 742.0% in the second quarter. EverSource Wealth Advisors LLC now owns 4,151 shares of the company's stock valued at $36,000 after purchasing an additional 3,658 shares in the last quarter. Finally, Fifth Third Bancorp grew its stake in KKR Real Estate Finance Trust by 5,654.7% in the first quarter. Fifth Third Bancorp now owns 6,100 shares of the company's stock valued at $37,000 after purchasing an additional 5,994 shares in the last quarter. 70.23% of the stock is currently owned by institutional investors.

KKR Real Estate Finance Trust Stock Up 0.5%

NYSE:KREF opened at $6.44 on Thursday. 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 company has a market cap of $413.77 million, a PE ratio of -3.46 and a beta of 0.81. KKR Real Estate Finance Trust has a 52-week low of $5.25 and a 52-week high of $9.98. The stock has a 50-day simple moving average of $6.50 and a 200 day simple moving average of $7.51.

KKR Real Estate Finance Trust (NYSE:KREF - Get Free Report) last posted its quarterly earnings data 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%. On average, sell-side analysts expect that KKR Real Estate Finance Trust will post -1.09 EPS for the current fiscal year.

KKR Real Estate Finance Trust Cuts Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 15th. Investors of record on Tuesday, June 30th will be issued a dividend of $0.10 per share. The ex-dividend date is Tuesday, June 30th. This represents a $0.40 dividend on an annualized basis and a dividend yield of 6.2%. KKR Real Estate Finance Trust's dividend payout ratio (DPR) is presently -53.76%.

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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