KKR Real Estate Finance Trust (NYSE:KREF) Shares Gap Down on Disappointing Earnings

KKR Real Estate Finance Trust (NYSE:KREF) shares gapped down prior to trading on Wednesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $9.05, but opened at $8.77. KKR Real Estate Finance Trust shares last traded at $8.88, with a volume of 184,401 shares changing hands.

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 1.58%. The business had revenue of $35.75 million during the quarter, compared to analyst estimates of $32.55 million.

KKR Real Estate Finance Trust Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, July 15th. Shareholders of record on Monday, June 30th were issued a $0.25 dividend. This represents a $1.00 dividend on an annualized basis and a yield of 11.04%. The ex-dividend date of this dividend was Monday, June 30th. KKR Real Estate Finance Trust’s payout ratio is 625.00%.

Wall Street Analyst Weigh In

KREF has been the subject of a number of analyst reports. JPMorgan Chase & Co. reduced their price objective on shares of KKR Real Estate Finance Trust from $11.50 to $9.50 and set an “overweight” rating for the company in a research note on Wednesday, April 16th. Keefe, Bruyette & Woods lowered shares of KKR Real Estate Finance Trust from an “outperform” rating to a “market perform” rating and set a $10.75 price target on the stock. in a report on Monday, April 7th. Finally, JMP Securities restated a “market outperform” rating and set a $12.00 price target on shares of KKR Real Estate Finance Trust in a report on Tuesday, May 20th. One research analyst has rated the stock with a hold rating and four have assigned a buy rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $11.95.

Hedge Funds Weigh In On KKR Real Estate Finance Trust

A number of large investors have recently made changes to their positions in the business. Wellington Management Group LLP purchased a new stake in shares of KKR Real Estate Finance Trust in the fourth quarter worth approximately $5,350,000. Price T Rowe Associates Inc. MD raised its position in KKR Real Estate Finance Trust by 2,400.3% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 477,633 shares of the company’s stock valued at $4,825,000 after acquiring an additional 458,530 shares in the last quarter. Balyasny Asset Management L.P. raised its position in KKR Real Estate Finance Trust by 116.5% during the fourth quarter. Balyasny Asset Management L.P. now owns 844,610 shares of the company’s stock valued at $8,531,000 after acquiring an additional 454,517 shares in the last quarter. Lighthouse Investment Partners LLC bought a new position in KKR Real Estate Finance Trust during the fourth quarter valued at approximately $2,477,000. Finally, Nuveen LLC bought a new position in KKR Real Estate Finance Trust during the first quarter valued at approximately $2,241,000. Institutional investors and hedge funds own 70.23% of the company’s stock.

KKR Real Estate Finance Trust Stock Performance

The stock has a market cap of $614.02 million, a P/E ratio of -13.72 and a beta of 0.91. The firm’s 50-day moving average is $9.10 and its two-hundred day moving average is $9.84. The company has a quick ratio of 413.32, a current ratio of 413.32 and a debt-to-equity ratio of 3.77.

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.