Apollo Commercial Real Estate Finance (NYSE:ARI) Sets New 52-Week Low - What's Next?

Key Points

• Apollo Commercial Real Estate Finance (NYSE: ARI) hit a new 52-week low, trading as low as $6.71 amid heavy volume, well below its recent close and far under its 50-day and 200-day moving averages.
• Analyst sentiment has weakened, with multiple firms cutting ratings; the stock now carries a consensus “Hold” rating and a consensus price target of $11.33.
• The company missed quarterly earnings and revenue estimates, while its recently paid dividend was dramatically increased to $3.75 per share, implying an unusually high yield but also a payout ratio above 100%.

Apollo Commercial Real Estate Finance (NYSE:ARI - Get Free Report) shares hit a new 52-week low during mid-day trading on Thursday . The company traded as low as $6.71 and last traded at $6.6950, with a volume of 488347 shares traded. The stock had previously closed at $6.78.

Wall Street Analyst Weigh In

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

Apollo Commercial Real Estate Finance Stock Performance

The firm has a market capitalization of $874.13 million, a P/E ratio of 8.24 and a beta of 1.35. The stock has a 50-day moving average of $10.36 and a 200 day moving average of $10.50. 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 (NYSE:ARI - Get Free Report) last released its quarterly earnings results on Wednesday, April 29th. The real estate investment trust reported $0.22 earnings per share for the quarter, missing analysts' consensus estimates of $0.29 by ($0.07). The business had revenue of $58.63 million for the quarter, compared to analyst estimates of $77.85 million. Apollo Commercial Real Estate Finance had a net margin of 48.01% and a return on equity of 7.87%. On average, research analysts anticipate that Apollo Commercial Real Estate Finance will post -0.18 earnings per share for the current year.

Apollo Commercial Real Estate Finance Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, July 15th. Stockholders of record on Tuesday, June 30th were paid a $3.75 dividend. This is a positive change from Apollo Commercial Real Estate Finance's previous quarterly dividend of $0.25. This represents a $15.00 dividend on an annualized basis and a dividend yield of 224.4%. Apollo Commercial Real Estate Finance's dividend payout ratio (DPR) is 123.46%.

Insider Activity

In related news, Director Carmencita N.M. Whonder sold 4,574 shares of the company'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 transaction, the director owned 24,799 shares in the company, valued at $271,053.07. This represents a 15.57% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. 0.52% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Apollo Commercial Real Estate Finance

A number of institutional investors have recently modified their holdings of ARI. GAMMA Investing LLC grew 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 valued at $27,000 after purchasing an additional 1,066 shares during the last quarter. Bessemer Group Inc. raised its position in Apollo Commercial Real Estate Finance by 388.7% in the 1st quarter. Bessemer Group Inc. now owns 3,255 shares of the real estate investment trust's stock worth $34,000 after purchasing an additional 2,589 shares during the last quarter. Farther Finance Advisors LLC lifted its holdings in Apollo Commercial Real Estate Finance by 60.2% during the 4th quarter. Farther Finance Advisors LLC now owns 5,037 shares of the real estate investment trust's stock worth $49,000 after buying an additional 1,892 shares in the last quarter. Parallel Advisors LLC lifted its holdings in Apollo Commercial Real Estate Finance by 61.7% during the 1st quarter. Parallel Advisors LLC now owns 4,656 shares of the real estate investment trust's stock worth $49,000 after buying an additional 1,777 shares in the last quarter. Finally, Danske Bank A S acquired a new position in Apollo Commercial Real Estate Finance during the 3rd quarter worth $50,000. 54.43% of the stock is 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.

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