What happened

Shares of KE Holdings (BEKE -1.60%), the largest real estate platform in China, traded as much as 15% lower at one point today for no obvious reason.

So what

KE Holdings operates China's leading real estate brokerage brand and has been around for about two decades. Last August, the company went public, pricing its initial public offering at about $20 per share. Today, the company currently trades for $46.58.

Investors have been excited about KE's online platform called Beike that pairs homebuyers with renters, and the company has been compared to the U.S. real estate brokerage Redfin (RDFN -4.17%).

Hand with marker drawing downward-trending line.

Image source: Getty Images.

There is no obvious reason I can tell for the shares' decline today. But KE Holdings' stock has been trending downward from close to $70 per share six months ago and around $53 per share roughly one month ago.

Now what

As of 2:45 p.m. on Monday, KE Holdings stock had bounced back and only traded more than 8% down on the day. Because the stock had such a big run-up in its first few months, investors may simply be taking gains, or potential investors may believe the company is overvalued.

Still, analysts on average recently gave KE Holdings a buy rating, with most of their price targets at $60 per share or above. The company will report earnings from the first quarter of the year on May 19, which could be a major catalyst for the stock.