Apollo Commercial Real Estate Finance (NYSE:ARI) Receives Average Rating of "Hold" from Analysts

Key Points

• Seven analysts give ARI a consensus rating of “Hold” (1 sell, 3 hold, 3 buy) with an average 12‑month target price of $11.00.
• The company declared a quarterly dividend of $0.25 (annualized $1.00), equating to a 9.0% yield, but the payout ratio is high at 125%, signaling potential sustainability concerns.
• In the most recent quarter ARI reported EPS of $0.26 (in line with estimates) while revenue of $73.25M materially beat the $46.97M consensus, and analysts forecast full‑year EPS of 0.63.

Apollo Commercial Real Estate Finance (NYSE:ARI - Get Free Report) has received a consensus rating of "Hold" from the seven ratings firms that are currently covering the firm, Marketbeat.com reports. One investment analyst has rated the stock with a sell recommendation, three have given a hold recommendation and three have assigned a buy recommendation to the company. The average 12-month target price among brokerages that have updated their coverage on the stock in the last year is $11.00.

ARI has been the subject of several research reports. Wall Street Zen downgraded shares of Apollo Commercial Real Estate Finance from a "buy" rating to a "hold" rating in a research note on Saturday, January 3rd. Weiss Ratings reiterated a "hold (c-)" rating on shares of Apollo Commercial Real Estate Finance in a research note on Monday, December 29th. Keefe, Bruyette & Woods boosted their price objective on shares of 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. Finally, Zacks Research cut Apollo Commercial Real Estate Finance from a "hold" rating to a "strong sell" rating in a research note on Thursday, February 19th.

Apollo Commercial Real Estate Finance Price Performance

Apollo Commercial Real Estate Finance stock opened at $11.07 on Tuesday. Apollo Commercial Real Estate Finance has a 1 year low of $8.09 and a 1 year high of $11.20. The firm has a 50 day moving average price of $10.59 and a 200 day moving average price of $10.23. The company has a market cap of $1.54 billion, a price-to-earnings ratio of 13.83 and a beta of 1.46. 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 earnings results on Tuesday, February 10th. The real estate investment trust reported $0.26 earnings per share (EPS) for the quarter, meeting analysts' consensus estimates of $0.26. Apollo Commercial Real Estate Finance had a net margin of 46.66% and a return on equity of 7.94%. The firm had revenue of $73.25 million during the quarter, compared to the consensus estimate of $46.97 million. Sell-side analysts predict that Apollo Commercial Real Estate Finance will post 0.63 earnings per share for the current year.

Apollo Commercial Real Estate Finance Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, April 15th. Shareholders of record on Tuesday, March 31st will be paid a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis and a dividend yield of 9.0%. The ex-dividend date is Tuesday, March 31st. Apollo Commercial Real Estate Finance's payout ratio is currently 125.00%.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the stock. GAMMA Investing LLC lifted its stake in shares of Apollo Commercial Real Estate Finance by 60.4% during the fourth quarter. GAMMA Investing LLC now owns 2,832 shares of the real estate investment trust's stock worth $27,000 after purchasing an additional 1,066 shares in the last quarter. Farther Finance Advisors LLC lifted its stake in shares of Apollo Commercial Real Estate Finance by 1,047.8% during the third quarter. Farther Finance Advisors LLC now owns 3,145 shares of the real estate investment trust's stock worth $32,000 after purchasing an additional 2,871 shares in the last quarter. Danske Bank A S purchased a new position in shares of Apollo Commercial Real Estate Finance in the third quarter valued at $50,000. Resources Management Corp CT ADV boosted its stake in shares of Apollo Commercial Real Estate Finance by 47,757.1% in 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 purchasing an additional 6,686 shares during the period. Finally, Smartleaf Asset Management LLC boosted its stake in shares of 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 valued at $74,000 after purchasing an additional 1,183 shares during the period. 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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