Apollo Commercial Real Estate Finance (NYSE:ARI) Issues Earnings Results, Misses Expectations By $2.73 EPS

Key Points

• Apollo Commercial Real Estate Finance reported a significant EPS miss, posting a quarterly loss of $2.62 per share versus the $0.11 consensus estimate. Revenue of $44.38 million exceeded expectations of $34.70 million.
• Shares fell 1.3% to $6.67, near the company’s 52-week low of $6.43. Analysts’ average rating is “Hold,” with an average price target of $11.33, while several firms recently downgraded the stock.
• The company declared a sharply increased quarterly dividend of $3.75, implying a 224.9% yield and a payout ratio above 123%. Institutional investors own 54.43% of ARI, while a director recently sold shares.

Apollo Commercial Real Estate Finance (NYSE:ARI - Get Free Report) released its quarterly earnings results on Monday. The real estate investment trust reported ($2.62) earnings per share for the quarter, missing the consensus estimate of $0.11 by ($2.73), FiscalAI reports. The company had revenue of $44.38 million during the quarter, compared to the consensus estimate of $34.70 million. Apollo Commercial Real Estate Finance had a net margin of 48.01% and a return on equity of 7.87%.

Apollo Commercial Real Estate Finance Stock Down 1.3%

Shares of Apollo Commercial Real Estate Finance stock traded down $0.09 during trading on Monday, hitting $6.67. The company's stock had a trading volume of 2,284,838 shares, compared to its average volume of 2,410,166. Apollo Commercial Real Estate Finance has a 52 week low of $6.43 and a 52 week high of $11.24. The company has a market capitalization of $872.17 million, a PE ratio of 8.23 and a beta of 1.36. The company has a fifty day simple moving average of $9.34 and a two-hundred day simple moving average of $10.22. The company has a debt-to-equity ratio of 0.68, a quick ratio of 81.80 and a current ratio of 81.81.

Apollo Commercial Real Estate Finance Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, July 15th. Investors of record on Tuesday, June 30th were paid a $3.75 dividend. This represents a $15.00 annualized dividend and a dividend yield of 224.9%. This is a positive change from Apollo Commercial Real Estate Finance's previous quarterly dividend of $0.25. Apollo Commercial Real Estate Finance's dividend payout ratio (DPR) is presently 123.46%.

Analysts Set New Price Targets

Several equities research analysts have recently commented on ARI shares. 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. Bank of America assumed coverage on shares of Apollo Commercial Real Estate Finance in a research report on Tuesday, May 5th. They set a "neutral" rating and a $11.50 price target on the stock. Zacks Research cut Apollo Commercial Real Estate Finance from a "hold" rating to a "strong sell" rating in a research report on Monday, August 3rd. Wall Street Zen downgraded Apollo Commercial Real Estate Finance from a "hold" rating to a "sell" rating in a report on Saturday, May 2nd. Finally, Weiss Ratings lowered Apollo Commercial Real Estate Finance from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Thursday, July 30th. Two equities research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat.com, Apollo Commercial Real Estate Finance presently has an average rating of "Hold" and an average price target of $11.33.

Insider Buying and Selling

In related news, Director Carmencita N.M. Whonder sold 4,574 shares of the business's stock in a transaction dated Wednesday, May 13th. The shares were sold at an average price of $10.93, for a total transaction of $49,993.82. Following the sale, the director owned 24,799 shares of the company's stock, valued at $271,053.07. The trade was a 15.57% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. 0.52% of the stock is owned by insiders.

Hedge Funds Weigh In On Apollo Commercial Real Estate Finance

Large investors have recently made changes to their positions in the business. Danske Bank A S purchased a new stake in shares of Apollo Commercial Real Estate Finance in the 3rd quarter worth approximately $50,000. Resources Management Corp CT ADV raised its stake in Apollo Commercial Real Estate Finance by 47,757.1% during the fourth quarter. Resources Management Corp CT ADV now owns 6,700 shares of the real estate investment trust's stock valued at $65,000 after buying an additional 6,686 shares during the last quarter. Smartleaf Asset Management LLC boosted its holdings in Apollo Commercial Real Estate Finance by 18.8% in the fourth quarter. Smartleaf Asset Management LLC now owns 7,462 shares of the real estate investment trust's stock worth $74,000 after acquiring an additional 1,183 shares in the last quarter. Steward Partners Investment Advisory LLC boosted its holdings in Apollo Commercial Real Estate Finance by 943.8% in the fourth quarter. Steward Partners Investment Advisory LLC now owns 10,438 shares of the real estate investment trust's stock worth $101,000 after acquiring an additional 9,438 shares in the last quarter. Finally, MML Investors Services LLC purchased a new stake in shares of Apollo Commercial Real Estate Finance in the fourth quarter worth $105,000. 54.43% of the stock is currently owned by hedge funds and other institutional investors.

Apollo Commercial Real Estate Finance Company Profile

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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