KE (NYSE:BEKE) Stock Sees Heavy Call Option Buying

Key Points

• Unusually heavy call-option activity: Investors bought 3,841 BEKE call options, 61% above the average volume, while the stock rose 1.9% to $16.91.
• Analysts remain broadly bullish: KE has a consensus “Buy” rating and an average price target of $23.64, supported by recent upgrades and an earnings beat.
• Insiders sold significant holdings: CEO Yongdong Peng and director Yigang Shan collectively sold nearly 19.4 million shares, while institutional ownership stands at 39.34%.

KE Holdings Inc. Sponsored ADR (NYSE:BEKE - Get Free Report) was the recipient of unusually large options trading on Wednesday. Stock investors acquired 3,841 call options on the stock. This represents an increase of 61% compared to the average volume of 2,389 call options.

Analysts Set New Price Targets

BEKE has been the topic of several recent analyst reports. Wall Street Zen raised shares of KE from a "hold" rating to a "buy" rating in a research note on Saturday, August 29th. Morgan Stanley reaffirmed an "overweight" rating on shares of KE in a research note on Friday, August 21st. Weiss Ratings reissued a "hold (c)" rating on shares of KE in a research note on Monday, September 21st. Zacks Research raised KE from a "hold" rating to a "strong-buy" rating in a research report on Wednesday, August 26th. Finally, CLSA started coverage on KE in a report on Wednesday, August 19th. They issued an "outperform" rating and a $23.80 target price for the company. One equities research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating and one has issued a Hold rating to the stock. According to MarketBeat, the company presently has a consensus rating of "Buy" and an average price target of $23.64.

KE Stock Up 1.9%

NYSE:BEKE traded up $0.32 during midday trading on Wednesday, reaching $16.91. 4,427,402 shares of the stock traded hands, compared to its average volume of 4,581,614. The stock has a market capitalization of $18.93 billion, a PE ratio of 27.73, a price-to-earnings-growth ratio of 0.55 and a beta of -0.26. KE has a 12-month low of $13.81 and a 12-month high of $19.88. The company has a debt-to-equity ratio of 0.01, a quick ratio of 3.30 and a current ratio of 3.30. The business has a 50-day moving average of $17.00 and a two-hundred day moving average of $16.51.

KE (NYSE:BEKE - Get Free Report) last released its quarterly earnings results on Friday, August 21st. The company reported $0.42 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.31 by $0.11. The business had revenue of $3.61 billion for the quarter, compared to analyst estimates of $3.59 billion. KE had a net margin of 5.38% and a return on equity of 7.62%. On average, equities analysts forecast that KE will post 1.03 earnings per share for the current fiscal year.

Insider Activity at KE

In other KE news, CEO Yongdong Peng sold 16,033,983 shares of the company's stock in a transaction on Friday, September 25th. The stock was sold at an average price of $5.27, for a total value of $84,499,090.41. Following the transaction, the chief executive officer owned 62,824,251 shares of the company's stock, valued at $331,083,802.77. This represents a 20.33% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, Director Yigang Shan sold 3,326,670 shares of the stock in a transaction on Monday, September 21st. The stock was sold at an average price of $5.44, for a total value of $18,097,084.80. Following the completion of the sale, the director owned 53,868,189 shares in the company, valued at approximately $293,042,948.16. The trade was a 5.82% decrease in their position. The disclosure for this sale is available in the SEC filing. Corporate insiders own 6.80% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in BEKE. Tidal Investments LLC acquired a new position in KE during the 2nd quarter valued at about $261,000. Baird Financial Group Inc. grew its stake in shares of KE by 5.8% during the second quarter. Baird Financial Group Inc. now owns 5,942,507 shares of the company's stock worth $86,345,000 after acquiring an additional 324,707 shares during the last quarter. Carrhae Capital LLP purchased a new stake in shares of KE during the second quarter worth about $10,138,000. Nykredit A S acquired a new position in shares of KE during the second quarter valued at about $456,000. Finally, Wellington Management Group LLP increased its holdings in shares of KE by 16.0% during the second quarter. Wellington Management Group LLP now owns 8,915,061 shares of the company's stock valued at $129,536,000 after acquiring an additional 1,231,445 shares in the last quarter. 39.34% of the stock is currently owned by hedge funds and other institutional investors.

About KE

KE Holdings Inc NYSE: BEKE is a technology-driven platform serving China's housing and property-services markets. The company operates the Beike platform, which connects consumers with housing agents, brokers, landlords, developers and other service providers.

Its business includes existing-home and new-home transactions, property rentals, and related services. KE Holdings also provides home renovation and furnishing services, as well as technology and data tools designed to support real estate agents, brokerage stores and property developers.

The company traces its roots to Lianjia, a Chinese real estate brokerage founded in 2001, and launched the Beike platform in 2018.

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