Apollo Commercial Real Estate Finance (NYSE:ARI) Hits New 12-Month Low - Here's What Happened

Key Points

• Apollo Commercial Real Estate Finance shares hit a new 52-week low of $6.62, down 1.9%, significantly below their 50-day and 200-day moving averages.
• Analyst sentiment remains cautious, with recent downgrades and a consensus “Hold” rating. The average price target is $11.33, while the company’s latest quarterly results missed estimates for both earnings and revenue.
• The company reported a sharp dividend increase to $3.75 per share, but its payout ratio reached 123.46%, raising questions about dividend sustainability as analysts forecast a full-year loss.

Apollo Commercial Real Estate Finance (NYSE:ARI - Get Free Report) reached a new 52-week low on Wednesday . The company traded as low as $6.62 and last traded at $6.6150, with a volume of 890083 shares. The stock had previously closed at $6.73.

Wall Street Analyst Weigh In

Several equities research analysts recently weighed in on the company. Weiss Ratings downgraded Apollo Commercial Real Estate Finance from a "hold (c)" rating to a "hold (c-)" rating in a report on Thursday, July 16th. Zacks Research upgraded shares of Apollo Commercial Real Estate Finance from a "strong sell" rating to a "hold" rating in a research report on Monday, April 20th. BTIG Research cut shares of Apollo Commercial Real Estate Finance from a "buy" rating to a "neutral" rating in a research report on Thursday, June 25th. Wall Street Zen lowered Apollo Commercial Real Estate Finance from a "hold" rating to a "sell" rating in a research report on Saturday, May 2nd. Finally, Bank of America initiated coverage on Apollo Commercial Real Estate Finance in a research report on Tuesday, May 5th. They set a "neutral" rating and a $11.50 target price on the stock. Two equities research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus price target of $11.33.

Apollo Commercial Real Estate Finance Stock Down 1.9%

The stock has a market cap of $863.67 million, a price-to-earnings ratio of 8.16 and a beta of 1.35. The firm's fifty day moving average price is $10.03 and its two-hundred day moving average price is $10.41. The company has a debt-to-equity ratio of 0.68, a current ratio of 81.81 and a quick ratio of 81.80.

Apollo Commercial Real Estate Finance (NYSE:ARI - Get Free Report) last issued its earnings results on Wednesday, April 29th. The real estate investment trust reported $0.22 EPS for the quarter, missing the consensus estimate of $0.29 by ($0.07). Apollo Commercial Real Estate Finance had a net margin of 48.01% and a return on equity of 7.87%. The firm had revenue of $58.63 million during the quarter, compared to analyst estimates of $77.85 million. Sell-side analysts forecast that Apollo Commercial Real Estate Finance will post -0.18 earnings per share for the current fiscal year.

Apollo Commercial Real Estate Finance Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, July 15th. Stockholders of record on Tuesday, June 30th were issued a dividend of $3.75 per share. This is an increase from Apollo Commercial Real Estate Finance's previous quarterly dividend of $0.25. This represents a $15.00 annualized dividend and a dividend yield of 227.1%. Apollo Commercial Real Estate Finance's payout ratio is currently 123.46%.

Insiders Place Their Bets

In related news, Director Carmencita N.M. Whonder sold 4,574 shares of the firm's stock in a transaction dated Wednesday, May 13th. The shares were sold at an average price of $10.93, for a total value of $49,993.82. Following the transaction, the director owned 24,799 shares of the company's stock, valued at approximately $271,053.07. This trade represents a 15.57% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders own 0.52% of the company's stock.

Hedge Funds Weigh In On Apollo Commercial Real Estate Finance

Several large investors have recently bought and sold shares of the stock. Empyrean Capital Partners LP bought a new stake in shares of Apollo Commercial Real Estate Finance in the 1st quarter worth $9,332,000. No Street GP LP lifted its position in shares of Apollo Commercial Real Estate Finance by 33.3% during the third quarter. No Street GP LP now owns 3,000,000 shares of the real estate investment trust's stock valued at $30,390,000 after purchasing an additional 750,000 shares in the last quarter. Waterfall Asset Management LLC purchased a new position in Apollo Commercial Real Estate Finance during the fourth quarter worth about $5,557,000. First Trust Advisors LP grew its holdings in shares of Apollo Commercial Real Estate Finance by 710.3% in the fourth quarter. First Trust Advisors LP now owns 636,383 shares of the real estate investment trust's stock valued at $6,160,000 after acquiring an additional 557,850 shares in the last quarter. Finally, Millennium Management LLC grew its stake in Apollo Commercial Real Estate Finance by 2,573.9% in the 4th quarter. Millennium Management LLC now owns 504,054 shares of the real estate investment trust's stock valued at $4,879,000 after purchasing an additional 485,203 shares during the period. 54.43% of the stock is currently owned by institutional investors.

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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