KKR Real Estate Finance Trust (NYSE:KREF) Lowered to “Neutral” Rating by BTIG Research

KKR Real Estate Finance Trust (NYSE:KREF) was downgraded by equities research analysts at BTIG Research from a “buy” rating to a “neutral” rating in a note issued to investors on Thursday, Marketbeat Ratings reports.

Other research analysts have also issued reports about the stock. Keefe, Bruyette & Woods dropped their price target on shares of KKR Real Estate Finance Trust from $8.75 to $8.25 and set a “market perform” rating on the stock in a research report on Thursday, January 8th. JPMorgan Chase & Co. restated a “neutral” rating and issued a $9.00 price objective (down previously from $9.50) on shares of KKR Real Estate Finance Trust in a research note on Monday, October 20th. Weiss Ratings reissued a “sell (d)” rating on shares of KKR Real Estate Finance Trust in a report on Thursday, January 22nd. Zacks Research lowered shares of KKR Real Estate Finance Trust from a “hold” rating to a “strong sell” rating in a research report on Tuesday. Finally, Wells Fargo & Company cut their price target on KKR Real Estate Finance Trust from $11.00 to $10.00 and set an “overweight” rating for the company in a research note on Friday, October 24th. Two analysts have rated the stock with a Buy rating, three have issued a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat, KKR Real Estate Finance Trust has an average rating of “Hold” and an average target price of $10.45.

KKR Real Estate Finance Trust Trading Down 3.6%

Shares of KREF stock opened at $7.89 on Thursday. KKR Real Estate Finance Trust has a twelve month low of $7.55 and a twelve month high of $11.53. The stock’s fifty day simple moving average is $8.33 and its 200 day simple moving average is $8.74. The company has a quick ratio of 423.43, a current ratio of 423.43 and a debt-to-equity ratio of 3.63. The firm has a market capitalization of $516.39 million, a P/E ratio of -7.51 and a beta of 0.88.

KKR Real Estate Finance Trust (NYSE:KREF) last announced its quarterly earnings results on Tuesday, February 3rd. The company reported $0.22 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.14 by $0.08. The firm had revenue of $32.72 million during the quarter, compared to analysts’ expectations of $26.06 million. KKR Real Estate Finance Trust had a negative net margin of 10.80% and a negative return on equity of 1.11%. As a group, sell-side analysts predict that KKR Real Estate Finance Trust will post 1.05 EPS for the current fiscal year.

Insider Activity at KKR Real Estate Finance Trust

In other news, Director Christen E.J. Lee purchased 10,000 shares of the firm’s stock in a transaction dated Friday, November 7th. The shares were purchased at an average price of $7.80 per share, with a total value of $78,000.00. Following the completion of the acquisition, the director owned 229,133 shares in the company, valued at $1,787,237.40. This trade represents a 4.56% increase in their position. The acquisition was disclosed in a filing with the SEC, which is available through this hyperlink. Also, Director Ralph F. Rosenberg sold 125,289 shares of the firm’s stock in a transaction that occurred on Wednesday, December 3rd. The shares were sold at an average price of $8.25, for a total transaction of $1,033,634.25. The disclosure for this sale is available in the SEC filing. Corporate insiders own 1.90% of the company’s stock.

Institutional Investors Weigh In On KKR Real Estate Finance Trust

Institutional investors have recently bought and sold shares of the stock. Geneos Wealth Management Inc. increased 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 grew its stake in shares of 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 worth $36,000 after purchasing an additional 3,658 shares during the last quarter. Allworth Financial LP increased its holdings in KKR Real Estate Finance Trust by 3,904.6% during the 2nd quarter. Allworth Financial LP now owns 4,365 shares of the company’s stock valued at $38,000 after purchasing an additional 4,256 shares during the period. Cloud Capital Management LLC bought a new position in KKR Real Estate Finance Trust during the 3rd quarter valued at approximately $48,000. Finally, Tower Research Capital LLC TRC increased its position in 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 valued at $50,000 after purchasing an additional 2,238 shares during the period. 70.23% of the stock is currently owned by hedge funds and other institutional investors.

More KKR Real Estate Finance Trust News

Here are the key news stories impacting KKR Real Estate Finance Trust this week:

• Positive Sentiment: Earnings and revenue beat — KREF reported Q4 EPS of $0.22 versus consensus ~ $0.13–$0.14 and revenue of $32.7M (above estimates), showing operating upside for the quarter. Business Wire: Q4 Results
• Positive Sentiment: Analyst support — BTIG reaffirmed a Buy rating, which can provide a floor for investor sentiment while management executes on dispositions and deleveraging. BTIG Reaffirms Buy
• Neutral Sentiment: Full context available — Management hosted an earnings call and posted a transcript/slide deck that outline strategy, portfolio actions and timing; these materials are important for assessing how aggressive the resolutions and repayments will be. Earnings Call Transcript
• Negative Sentiment: Large repayment and asset-resolution program — Management outlined a targeted $1.5B of repayments and said it will pursue “aggressive” asset resolutions; that implies possible realized losses, continued portfolio runoff and lower near-term distributable earnings. MSN: Repayment & Asset Resolutions
• Negative Sentiment: Dividend uncertainty and balance-sheet metrics — Management is “evaluating” dividend strategy, which raised investor concern about cuts or pauses; the REIT also shows high leverage and negative recent profitability metrics, factors that increase sensitivity to asset-sale
  outcomes. Yahoo: Call Highlights

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.