If you want to know that KKR Real Estate Finance Trust Inc. (NYSE:KREF), you need to look at the makeup of its stock registry. Large companies usually have institutions as shareholders, and we usually own shares in smaller companies. Companies that have been privatized have less insider ownership.
KKR Real Estate Finance Trust is not huge, but it is not particularly small either. It has a market capitalization of US$1.4b, which means it would typically be the few institutions one would expect to see on the stock registry. In the chart below, we can see that the institutions on the Share Registry deserve attention. Let us know more about KKR Real Estate Finance Trust in depth about each type of owner.
Check out our latest analysis for KKR Real Estate Finance Trust
dissolution of ownership
What does institutional ownership tell us about KKR Real Estate Finance Trust?
Many institutions measure their performance against an index that approximates the local market. So they usually focus more on companies that are included in the major indices.
As you can see, institutional investors hold a substantial stake in KKR Real Estate Finance Trust. This may indicate that the company has some degree of credibility in the investment community. However, it is best to be wary of relying on the validation that comes with institutional investors. Sometimes they get it wrong too. If two large institutional investors try to sell a stock at the same time, it is not unusual to see a large drop in the share price. So it is worth checking the past earnings trajectory of KKR Real Estate Finance Trust, (below). Of course, keep in mind that there are other factors to consider as well.
earnings and revenue growth
Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. KKR Real Estate Finance Trust is not owned by the hedge fund. KKR & Co. Inc. is currently the largest shareholder of the company, with 21% of its shares outstanding. The second and third largest shareholders, meanwhile, hold 11% and 5.7%, respectively, of the outstanding shares.
Upon further inspection, we found that more than half of the company’s shares are owned by the top 7 shareholders, suggesting that the interests of the larger shareholders are balanced by smaller ones to an extent.
While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understanding of a stock’s expected performance. There are plenty of analysts covering the stock, so it might be worth seeing what they’re forecasting.
Insider ownership of KKR Real Estate Finance Trust
The definition of a company insider can be subjective and varies between jurisdictions. Our data reflects individual insiders, at least one holding board members. The company answers to the management board and the latter must represent the interests of the shareholders. In particular, sometimes top-level managers are themselves on board.
I generally consider insider ownership to be a good thing. However, on some occasions it becomes more difficult for other shareholders to hold the board accountable for decisions.
We can see that KKR Real Estate Finance Trust Inc holds insiders’ shares. It’s a large company, so it’s good to see this level of alignment. Insiders hold US$16m worth of shares (at current prices). It is good to see this level of investment by insiders. You can check here to see if those insiders have been shopping lately.
general public ownership
With 24% ownership, the general public, which includes mostly individual investors, has some degree of influence over KKR Real Estate Finance Trust. While this group may not necessarily call the shots, it can certainly have a real impact on the way the company is run.
private equity ownership
With a stake of 21%, the private equity firm may influence the KKR Real Estate Finance Trust board. Sometimes we see private equities stick around for a longer period of time, but generally they have a shorter investment horizon and – as the name suggests – don’t invest much in public companies. After some time they may look to sell and redeploy the capital elsewhere.
It is always appropriate to think of the different groups holding shares in a company. But to understand KKR Real Estate Finance Trust better, we need to consider several other factors. For example, we have identified 4 warning signs for KKR Real Estate Finance Trust (2 should not be ignored) which you should be aware of.
At the end future is most important, you can access it free Report on analyst forecasts for the company.
Note: The figures in this article are calculated using data for the last twelve months, which refers to the 12-month period ending on the last date of the financial statement dated month. This may not be in line with the figures in the Annual Report for the whole year.
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