KKR Real Estate Finance Trust (NYSE:KREF) Stock Price Expected to Rise, Keefe, Bruyette & Woods Analyst Says

Key Points

• Keefe, Bruyette & Woods raised its price target on KKR Real Estate Finance Trust from $6.50 to $7.00, while keeping a “market perform” rating on the stock.
• Other analysts have been increasingly cautious on KREF, with several recent downgrades and a current consensus rating of “Reduce” and an average price target of $8.50.
• The company recently reported a quarterly EPS miss of $0.58 versus $0.56 expected, though revenue came in above estimates at $29.34 million; meanwhile, both the COO and CEO bought shares earlier in the year.

KKR Real Estate Finance Trust (NYSE:KREF - Get Free Report) had its price objective boosted by equities research analysts at Keefe, Bruyette & Woods from $6.50 to $7.00 in a note issued to investors on Thursday,Benzinga reports. The firm currently has a "market perform" rating on the stock. Keefe, Bruyette & Woods' target price indicates a potential downside of 5.74% from the company's previous close.

KREF has been the topic of a number of other research reports. 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. JPMorgan Chase & Co. downgraded KKR Real Estate Finance Trust from a "neutral" rating to an "underweight" rating and set a $6.00 target price for the company. in a research report on Friday, July 17th. Wells Fargo & Company lowered their price target on KKR Real Estate Finance Trust from $9.00 to $7.00 and set an "overweight" rating on the stock in a research report on Tuesday, April 28th. Wall Street Zen cut KKR Real Estate Finance Trust from a "sell" rating to a "strong sell" rating in a research report on Sunday, July 12th. Finally, Citigroup downgraded KKR Real Estate Finance Trust from a "neutral" rating to a "market perform" rating in a research note on Monday, April 27th. One analyst has rated the stock with a Buy rating, five have issued a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of "Reduce" and an average price target of $8.50.

KKR Real Estate Finance Trust Stock Performance

Shares of KREF opened at $7.43 on Thursday. The firm has a 50-day moving average price of $6.98 and a 200 day moving average price of $7.01. The firm has a market capitalization of $477.49 million, a PE ratio of -2.26 and a beta of 0.82. 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 52-week low of $5.25 and a 52-week high of $9.98.

KKR Real Estate Finance Trust (NYSE:KREF - Get Free Report) last released its earnings results on Tuesday, July 21st. The company reported ($0.58) EPS for the quarter, missing the consensus estimate of ($0.56) by ($0.02). KKR Real Estate Finance Trust had a negative net margin of 47.33% and a negative return on equity of 1.46%. The company had revenue of $29.34 million for the quarter, compared to analyst estimates of $24.97 million. On average, sell-side analysts anticipate that KKR Real Estate Finance Trust will post -1.39 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, COO W Patrick Mattson bought 40,000 shares of the firm's stock in a transaction that occurred on Friday, April 24th. The shares were acquired at an average cost of $6.03 per share, for a total transaction of $241,200.00. Following the acquisition, the chief operating officer directly owned 500,287 shares of the company's stock, valued at $3,016,730.61. The trade was a 8.69% increase in their position. The transaction was disclosed in a document filed with the SEC, which is available through this link. Also, CEO Matthew A. Salem bought 60,000 shares of the business's stock in a transaction dated Friday, April 24th. The shares were bought at an average cost of $6.04 per share, for a total transaction of $362,400.00. Following the completion of the transaction, the chief executive officer directly owned 703,075 shares of the company's stock, valued at $4,246,573. This trade represents a 9.33% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Insiders own 2.12% of the company's stock.

Institutional Trading of KKR Real Estate Finance Trust

A number of hedge funds have recently bought and sold shares of KREF. Hantz Financial Services Inc. increased its position in shares of 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 worth $25,000 after acquiring an additional 2,101 shares in the last quarter. PNC Financial Services Group Inc. lifted its position in shares of 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 in the last quarter. Geneos Wealth Management Inc. boosted its stake 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 worth $30,000 after purchasing an additional 1,725 shares during the period. EverSource Wealth Advisors LLC boosted its stake 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 worth $36,000 after purchasing an additional 3,658 shares during the period. Finally, Fifth Third Bancorp grew its position in KKR Real Estate Finance Trust by 5,654.7% during the 1st quarter. Fifth Third Bancorp now owns 6,100 shares of the company's stock worth $37,000 after purchasing an additional 5,994 shares in the last quarter. 70.23% of the stock is owned by hedge funds and other institutional investors.

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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