Apollo Commercial Real Estate Finance (NYSE:ARI) Coverage Initiated by Analysts at Bank of America

Key Points

• Bank of America initiated coverage on Apollo Commercial Real Estate Finance with a "neutral" rating and an $11.50 price target, implying about a 4.6% upside from the current price.
• Recent quarterly results missed expectations: ARI reported $0.22 EPS vs. $0.29 expected and revenue of $58.6M vs. $77.9M, while the stock trades near $11 with a $1.46B market cap.
• The analyst consensus is a "Hold" with a $11.13 average target, and institutional investors own about 54.4% of the shares, with several funds modestly increasing their positions.

Analysts at Bank of America initiated coverage on shares of Apollo Commercial Real Estate Finance (NYSE:ARI - Get Free Report) in a research report issued to clients and investors on Tuesday. The brokerage set a "neutral" rating and a $11.50 price target on the real estate investment trust's stock. Bank of America's price target indicates a potential upside of 4.59% from the company's current price.

Several other equities analysts have also recently issued reports on the company. Zacks Research upgraded Apollo Commercial Real Estate Finance from a "strong sell" rating to a "hold" rating in a report on Monday, April 20th. Keefe, Bruyette & Woods raised their price target on Apollo Commercial Real Estate Finance from $10.75 to $11.50 and gave the company an "outperform" rating in a report on Thursday, February 12th. Finally, Wall Street Zen cut Apollo Commercial Real Estate Finance from a "hold" rating to a "sell" rating in a report on Saturday. Two investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of "Hold" and a consensus target price of $11.13.

Apollo Commercial Real Estate Finance Price Performance

Apollo Commercial Real Estate Finance stock opened at $11.00 on Tuesday. The business's 50-day simple moving average is $10.69 and its 200 day simple moving average is $10.32. The stock has a market cap of $1.46 billion, a price-to-earnings ratio of 13.57 and a beta of 1.37. Apollo Commercial Real Estate Finance has a 12-month low of $9.30 and a 12-month high of $11.24. The company has a quick ratio of 81.80, a current ratio of 81.81 and a debt-to-equity ratio of 0.68.

Apollo Commercial Real Estate Finance (NYSE:ARI - Get Free Report) last posted its quarterly earnings results on Tuesday, April 28th. The real estate investment trust reported $0.22 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.29 by ($0.07). The firm had revenue of $58.63 million during the quarter, compared to the consensus estimate of $77.85 million. Apollo Commercial Real Estate Finance had a net margin of 48.01% and a return on equity of 7.87%. As a group, research analysts anticipate that Apollo Commercial Real Estate Finance will post 0.88 earnings per share for the current year.

Institutional Investors Weigh In On Apollo Commercial Real Estate Finance

A number of hedge funds have recently modified their holdings of the business. Carmel Capital Partners LLC raised its position in shares of Apollo Commercial Real Estate Finance by 6.9% during the first quarter. Carmel Capital Partners LLC now owns 336,262 shares of the real estate investment trust's stock worth $3,551,000 after purchasing an additional 21,761 shares during the period. Kestra Advisory Services LLC raised its position in Apollo Commercial Real Estate Finance by 5.5% in the 1st quarter. Kestra Advisory Services LLC now owns 85,940 shares of the real estate investment trust's stock valued at $908,000 after buying an additional 4,514 shares during the last quarter. QRG Capital Management Inc. raised its position in Apollo Commercial Real Estate Finance by 13.8% in the 1st quarter. QRG Capital Management Inc. now owns 64,026 shares of the real estate investment trust's stock valued at $676,000 after buying an additional 7,742 shares during the last quarter. Pictet Asset Management Holding SA raised its position in Apollo Commercial Real Estate Finance by 36.7% in the 1st quarter. Pictet Asset Management Holding SA now owns 18,906 shares of the real estate investment trust's stock valued at $200,000 after buying an additional 5,071 shares during the last quarter. Finally, Louisiana State Employees Retirement System acquired a new stake in Apollo Commercial Real Estate Finance in the 1st quarter valued at approximately $615,000. Institutional investors and hedge funds own 54.43% of the company's stock.

About Apollo Commercial Real Estate Finance

Apollo Commercial Real Estate Finance, Inc NYSE: ARI is a real estate finance company structured as a real estate investment trust (REIT). The company focuses on originating, acquiring and managing a diversified portfolio of commercial real estate debt and preferred equity investments. As an externally managed vehicle, ARI leverages the expertise and resources of an affiliate of Apollo Global Management, a leading global alternative investment manager.

ARI's investment strategy is centered on providing first mortgage loans, mezzanine debt financing, bridge loans and preferred equity across a broad range of property types, including office, retail, industrial and multifamily assets.

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