Apollo Commercial Real Estate Finance (NYSE:ARI) Reaches New 12-Month High - Still a Buy?

Key Points

• 52-week high: ARI reached a new 52-week high of $11.24 (last at $11.2230) on heavy volume (~1.08M shares), trading above its 50- and 200-day moving averages (~$10.60/$10.24).
• High dividend but stretched payout: The company declared a $0.25 quarterly dividend (annualized $1.00) for an 8.9% yield, but the payout ratio is 125%, which may raise sustainability concerns.
• Mixed analyst view: Wall Street’s consensus is a "Hold" with an average target of $11.00 (3 Buy, 3 Hold, 1 Sell), though Keefe, Bruyette & Woods raised its target to $11.50 and rates ARI "Outperform."

Apollo Commercial Real Estate Finance (NYSE:ARI - Get Free Report)'s stock price reached a new 52-week high on Wednesday . The company traded as high as $11.24 and last traded at $11.2230, with a volume of 1075319 shares trading hands. The stock had previously closed at $11.07.

Analyst Upgrades and Downgrades

A number of equities analysts recently weighed in on ARI shares. Zacks Research lowered Apollo Commercial Real Estate Finance from a "hold" rating to a "strong sell" rating in a research report on Thursday, February 19th. Weiss Ratings reissued a "hold (c-)" rating on shares of Apollo Commercial Real Estate Finance in a research note on Monday, December 29th. Wall Street Zen downgraded Apollo Commercial Real Estate Finance from a "buy" rating to a "hold" rating in a research note on Saturday, January 3rd. Finally, Keefe, Bruyette & Woods increased their price objective on Apollo Commercial Real Estate Finance from $10.75 to $11.50 and gave the stock an "outperform" rating in a research note on Thursday, February 12th. Three investment analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the company currently has an average rating of "Hold" and an average target price of $11.00.

Apollo Commercial Real Estate Finance Stock Performance

The company has a market cap of $1.57 billion, a P/E ratio of 14.03 and a beta of 1.46. The firm has a 50 day moving average price of $10.60 and a 200-day moving average price of $10.24. The company has a debt-to-equity ratio of 0.66, a quick ratio of 96.78 and a current ratio of 96.78.

Apollo Commercial Real Estate Finance (NYSE:ARI - Get Free Report) last released its quarterly earnings results on Tuesday, February 10th. The real estate investment trust reported $0.26 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.26. Apollo Commercial Real Estate Finance had a return on equity of 7.94% and a net margin of 46.66%.The company had revenue of $73.25 million during the quarter, compared to the consensus estimate of $46.97 million. On average, research analysts predict that Apollo Commercial Real Estate Finance will post 0.63 EPS for the current year.

Apollo Commercial Real Estate Finance Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, April 15th. Investors of record on Tuesday, March 31st will be paid a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a yield of 8.9%. The ex-dividend date is Tuesday, March 31st. Apollo Commercial Real Estate Finance's payout ratio is currently 125.00%.

Hedge Funds Weigh In On Apollo Commercial Real Estate Finance

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Purpose Unlimited Inc. acquired a new stake in Apollo Commercial Real Estate Finance during the fourth quarter valued at approximately $2,393,000. Rockefeller Capital Management L.P. boosted its holdings in Apollo Commercial Real Estate Finance by 76.1% during the fourth quarter. Rockefeller Capital Management L.P. now owns 23,598 shares of the real estate investment trust's stock valued at $228,000 after purchasing an additional 10,197 shares in the last quarter. Alpine Global Management LLC acquired a new stake in Apollo Commercial Real Estate Finance during the fourth quarter valued at approximately $286,000. Invesco Ltd. boosted its holdings in Apollo Commercial Real Estate Finance by 13.6% during the fourth quarter. Invesco Ltd. now owns 1,244,477 shares of the real estate investment trust's stock valued at $12,047,000 after purchasing an additional 149,220 shares in the last quarter. Finally, Mercer Global Advisors Inc. ADV boosted its holdings in Apollo Commercial Real Estate Finance by 18.1% during the fourth quarter. Mercer Global Advisors Inc. ADV now owns 46,312 shares of the real estate investment trust's stock valued at $448,000 after purchasing an additional 7,091 shares in the last quarter. 54.43% of the stock is currently owned by 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.