KKR Real Estate Finance Trust Inc.'s (NYSE:KREF)) market cap declines to US$1.3b but insiders who sold US$608k stock were able to hedge their losses

By
Simply Wall St
Published
January 24, 2022
NYSE:KREF
Source: Shutterstock

By selling US$608k worth of KKR Real Estate Finance Trust Inc. (NYSE:KREF) stock at an average sell price of US$21.38 over the last year, insiders seemed to have made the most of their holdings. The company’s market cap plunged by US$53m after price dropped by 3.9% last week but insiders were able to limit their loss to an extent.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for KKR Real Estate Finance Trust

KKR Real Estate Finance Trust Insider Transactions Over The Last Year

The Non Independent Vice Chairman of the Board, Christen E. Lee, made the biggest insider sale in the last 12 months. That single transaction was for US$608k worth of shares at a price of US$21.65 each. So we know that an insider sold shares at around the present share price of US$21.32. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive). Christen E. Lee was the only individual insider to sell shares in the last twelve months.

The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
NYSE:KREF Insider Trading Volume January 24th 2022

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insider Ownership of KKR Real Estate Finance Trust

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Insiders own 1.2% of KKR Real Estate Finance Trust shares, worth about US$16m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The KKR Real Estate Finance Trust Insider Transactions Indicate?

It doesn't really mean much that no insider has traded KKR Real Estate Finance Trust shares in the last quarter. Our analysis of KKR Real Estate Finance Trust insider transactions leaves us cautious. But it's good to see that insiders own shares in the company. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To help with this, we've discovered 4 warning signs (2 don't sit too well with us!) that you ought to be aware of before buying any shares in KKR Real Estate Finance Trust.

Of course KKR Real Estate Finance Trust may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.

Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.

Make Confident Investment Decisions

Simply Wall St's Editorial Team provides unbiased, factual reporting on global stocks using in-depth fundamental analysis.
Find out more about our editorial guidelines and team.