Ares Commercial Real Estate (NYSE:ACRE) Price Target Cut to $4.50 by Analysts at Keefe, Bruyette & Woods

Key Points

• Keefe, Bruyette & Woods cut ACRE’s price target from $5.50 to $4.50 but maintained an “outperform” rating, implying roughly 25.5% upside from the $3.58 share price.
• Analyst sentiment remains cautious: ACRE has a consensus rating of “Reduce,” with one Buy, four Hold, and two Sell ratings, and an average price target of $5.00.
• Shares fell 2.0% to $3.58, near the stock’s one-year low, despite the company exceeding quarterly earnings and revenue estimates; institutional investors own 41.34% of the shares.

Ares Commercial Real Estate (NYSE:ACRE - Get Free Report) had its target price dropped by Keefe, Bruyette & Woods from $5.50 to $4.50 in a note issued to investors on Friday, Benzinga reports. The brokerage currently has an "outperform" rating on the real estate investment trust's stock. Keefe, Bruyette & Woods' target price would suggest a potential upside of 25.52% from the company's current price.

Other research analysts have also recently issued research reports about the stock. Wall Street Zen upgraded shares of Ares Commercial Real Estate from a "sell" rating to a "hold" rating in a report on Saturday, August 15th. JPMorgan Chase & Co. lowered their price target on shares of Ares Commercial Real Estate from $5.50 to $5.00 and set a "neutral" rating on the stock in a research note on Friday, July 17th. Weiss Ratings raised shares of Ares Commercial Real Estate from a "sell (d)" rating to a "sell (d+)" rating in a research report on Tuesday, September 29th. Zacks Research upgraded Ares Commercial Real Estate from a "strong sell" rating to a "hold" rating in a report on Friday, July 10th. Finally, Citizens Jmp reaffirmed a "market perform" rating on shares of Ares Commercial Real Estate in a research report on Thursday, July 9th. One research analyst has rated the stock with a Buy rating, four have issued a Hold rating and two have assigned a Sell rating to the company's stock. According to MarketBeat.com, Ares Commercial Real Estate has an average rating of "Reduce" and a consensus price target of $5.00.

Ares Commercial Real Estate Stock Down 2.0%

Shares of NYSE:ACRE traded down $0.07 during mid-day trading on Friday, reaching $3.58. 253,274 shares of the stock were exchanged, compared to its average volume of 472,126. The stock's 50 day simple moving average is $4.41 and its 200-day simple moving average is $4.67. Ares Commercial Real Estate has a one year low of $3.57 and a one year high of $5.89. The company has a market cap of $198.90 million, a P/E ratio of -44.81 and a beta of 1.19.

Ares Commercial Real Estate (NYSE:ACRE - Get Free Report) last released its quarterly earnings results on Monday, August 3rd. The real estate investment trust reported $0.12 earnings per share for the quarter, topping analysts' consensus estimates of $0.04 by $0.08. The firm had revenue of $14.36 million during the quarter, compared to the consensus estimate of $10.96 million. Ares Commercial Real Estate had a positive return on equity of 4.08% and a negative net margin of 8.04%. Analysts anticipate that Ares Commercial Real Estate will post 0.39 EPS for the current fiscal year.

Institutional Investors Weigh In On Ares Commercial Real Estate

Several hedge funds have recently bought and sold shares of ACRE. BlackRock Inc. acquired a new position in Ares Commercial Real Estate during the second quarter worth approximately $21,024,000. North Ground Capital bought a new position in shares of Ares Commercial Real Estate during the 2nd quarter worth approximately $5,544,000. Cura Wealth Advisors LLC bought a new position in shares of Ares Commercial Real Estate during the 2nd quarter worth approximately $4,060,000. Alpine Global Management LLC increased its holdings in shares of Ares Commercial Real Estate by 27.8% during the 4th quarter. Alpine Global Management LLC now owns 759,110 shares of the real estate investment trust's stock worth $3,629,000 after acquiring an additional 165,193 shares during the last quarter. Finally, Almitas Capital LLC bought a new stake in Ares Commercial Real Estate in the 2nd quarter valued at $814,000. 41.34% of the stock is currently owned by institutional investors and hedge funds.

Ares Commercial Real Estate Company Profile

Ares Commercial Real Estate Corporation NYSE: ACRE is a real estate investment trust focused on commercial real estate finance. The company originates and invests in loans and other credit-related investments secured by commercial properties, with an emphasis on providing financing to property owners and investors.

Its investment activities include senior mortgage loans, mezzanine loans, subordinated loans and other forms of commercial real estate debt. The company generally targets properties such as multifamily, office, industrial, retail, hospitality and other commercial assets, including both stabilized and transitional properties.

Ares Commercial Real Estate primarily serves borrowers and real estate sponsors in the United States.

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