KKR Real Estate Finance Trust (NYSE:KREF) Shares Gap Down - Should You Sell?

Key Points

• KKR Real Estate Finance Trust (NYSE:KREF) shares opened lower at $8.43, down from a previous close of $8.63, and are currently trading around $8.52 with a trading volume of 130,416 shares.
• Wall Street analysts have varying opinions on KREF, with JPMorgan lowering its price target to $9.00 while Zacks upgraded it from "strong sell" to "hold," resulting in an average rating of "hold" and a consensus price target of $11.31.
• The company recently announced a quarterly dividend of $0.25 per share, reflecting an annual dividend yield of 11.7%, although its dividend payout ratio is negative at -151.52%.

KKR Real Estate Finance Trust (NYSE:KREF - Get Free Report) shares gapped down before the market opened on Monday . The stock had previously closed at $8.63, but opened at $8.43. KKR Real Estate Finance Trust shares last traded at $8.52, with a volume of 130,416 shares changing hands.

Wall Street Analysts Forecast Growth

A number of brokerages have recently weighed in on KREF. JPMorgan Chase & Co. reissued a "neutral" rating and set a $9.00 price objective (down from $9.50) on shares of KKR Real Estate Finance Trust in a report on Monday. Zacks Research raised shares of KKR Real Estate Finance Trust from a "strong sell" rating to a "hold" rating in a report on Monday, September 29th. Weiss Ratings reiterated a "sell (d)" rating on shares of KKR Real Estate Finance Trust in a research report on Wednesday, October 8th. Finally, Wall Street Zen upgraded shares of KKR Real Estate Finance Trust from a "sell" rating to a "hold" rating in a research report on Friday, September 5th. Two research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, KKR Real Estate Finance Trust currently has an average rating of "Hold" and a consensus price target of $11.31.

KKR Real Estate Finance Trust Stock Performance

The stock's fifty day simple moving average is $9.26 and its 200-day simple moving average is $9.17. The company has a market capitalization of $561.89 million, a price-to-earnings ratio of -12.96 and a beta of 0.89. The company has a current ratio of 440.20, a quick ratio of 440.20 and a debt-to-equity ratio of 3.81.

KKR Real Estate Finance Trust (NYSE:KREF - Get Free Report) last announced its quarterly earnings data on Tuesday, July 22nd. The company reported ($0.53) earnings per share for the quarter, missing analysts' consensus estimates of ($0.16) by ($0.37). KKR Real Estate Finance Trust had a negative net margin of 4.43% and a positive return on equity of 1.61%. The firm had revenue of $35.75 million during the quarter, compared to analyst estimates of $32.55 million. Analysts predict that KKR Real Estate Finance Trust will post 1.05 EPS for the current year.

KKR Real Estate Finance Trust Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, October 15th. Stockholders of record on Tuesday, September 30th were given a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis and a dividend yield of 11.7%. The ex-dividend date was Tuesday, September 30th. KKR Real Estate Finance Trust's dividend payout ratio (DPR) is presently -151.52%.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the business. CWM LLC increased its stake in shares of KKR Real Estate Finance Trust by 79.8% during the 3rd quarter. CWM LLC now owns 20,575 shares of the company's stock worth $185,000 after purchasing an additional 9,129 shares in the last quarter. Geneos Wealth Management Inc. increased its stake in shares of KKR Real Estate Finance Trust by 100.0% during the 2nd quarter. Geneos Wealth Management Inc. now owns 3,450 shares of the company's stock worth $30,000 after purchasing an additional 1,725 shares in the last quarter. Public Sector Pension Investment Board increased its stake in shares of KKR Real Estate Finance Trust by 6.1% during the 2nd quarter. Public Sector Pension Investment Board now owns 194,133 shares of the company's stock worth $1,703,000 after purchasing an additional 11,110 shares in the last quarter. Tower Research Capital LLC TRC increased its stake in shares of KKR Real Estate Finance Trust by 64.1% during the 2nd quarter. Tower Research Capital LLC TRC now owns 5,732 shares of the company's stock worth $50,000 after purchasing an additional 2,238 shares in the last quarter. Finally, Sophron Capital Management L.P. grew its stake in KKR Real Estate Finance Trust by 57.1% in the 2nd quarter. Sophron Capital Management L.P. now owns 57,138 shares of the company's stock worth $501,000 after acquiring an additional 20,759 shares during the period. 70.23% of the stock is owned by hedge funds and other institutional investors.

About KKR Real Estate Finance Trust

KKR Real Estate Finance Trust Inc, a mortgage real estate investment trust, focuses primarily on originating and acquiring transitional senior loans secured by commercial real estate (CRE) assets. It engages in the origination and purchase of credit investments related to CRE, including leveraged and unleveraged commercial real estate loans.

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