Apollo Commercial Real Estate Finance (NYSE:ARI) Stock Crosses Above 200 Day Moving Average - Here's Why

Key Points

• ARI shares crossed above their 200-day moving average on Friday, trading as high as $11.06 versus a 200-day average of $10.44. The stock last changed hands at $10.97 on volume of more than 1.1 million shares.
• Analyst sentiment is mixed but mostly cautious, with the stock carrying an average "Hold" rating and an average target price of $11.13. Recent notes included a Bank of America "neutral" rating and a Keefe, Bruyette & Woods "outperform" rating, while others remained at Hold or Sell.
• Recent fundamentals show a quarterly earnings miss, as Apollo Commercial Real Estate Finance reported EPS of $0.22 versus $0.29 expected and revenue below estimates. The company also paid a $0.25 quarterly dividend, implying a 9.1% annualized yield.

Apollo Commercial Real Estate Finance (NYSE:ARI - Get Free Report)'s stock price passed above its 200-day moving average during trading on Friday . The stock has a 200-day moving average of $10.44 and traded as high as $11.06. Apollo Commercial Real Estate Finance shares last traded at $10.9650, with a volume of 1,114,083 shares trading hands.

Wall Street Analyst Weigh In

ARI has been the subject of several recent research reports. Bank of America initiated coverage on shares of Apollo Commercial Real Estate Finance in a research report on Tuesday, May 5th. They issued a "neutral" rating and a $11.50 price target for the company. 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. Weiss Ratings restated a "hold (c)" rating on shares of Apollo Commercial Real Estate Finance in a research report on Friday, May 22nd. Keefe, Bruyette & Woods upped their price target on shares of Apollo Commercial Real Estate Finance from $10.75 to $11.50 and gave the company an "outperform" rating in a research report on Thursday, February 12th. Finally, Wall Street Zen cut shares of Apollo Commercial Real Estate Finance from a "hold" rating to a "sell" rating in a research report on Saturday, May 2nd. Two investment analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of "Hold" and an average target price of $11.13.

Apollo Commercial Real Estate Finance Stock Performance

The company has a current ratio of 81.81, a quick ratio of 81.80 and a debt-to-equity ratio of 0.68. The company's 50-day simple moving average is $10.84 and its 200-day simple moving average is $10.44. The stock has a market capitalization of $1.46 billion, a price-to-earnings ratio of 13.54 and a beta of 1.37.

Apollo Commercial Real Estate Finance (NYSE:ARI - Get Free Report) last announced its quarterly earnings results on Wednesday, April 29th. The real estate investment trust reported $0.22 earnings per share (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 business had revenue of $58.63 million during the quarter, compared to analyst estimates of $77.85 million. On average, analysts expect that Apollo Commercial Real Estate Finance will post 0.88 EPS for the current year.

Apollo Commercial Real Estate Finance Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, April 15th. Stockholders of record on Tuesday, March 31st were given a dividend of $0.25 per share. The ex-dividend date was Tuesday, March 31st. This represents a $1.00 annualized dividend and a dividend yield of 9.1%. Apollo Commercial Real Estate Finance's dividend payout ratio is 123.46%.

Insider Buying and Selling at Apollo Commercial Real Estate Finance

In other news, Director Carmencita N.M. Whonder sold 4,574 shares of the stock in a transaction on Wednesday, May 13th. The shares were sold at an average price of $10.93, for a total transaction of $49,993.82. Following the completion of the sale, the director directly owned 24,799 shares in the company, valued at $271,053.07. This represents a 15.57% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. 0.68% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Apollo Commercial Real Estate Finance

Large investors have recently modified their holdings of the company. Wealth Enhancement Advisory Services LLC increased its position in shares of Apollo Commercial Real Estate Finance by 251.8% during the third quarter. Wealth Enhancement Advisory Services LLC now owns 171,808 shares of the real estate investment trust's stock worth $1,718,000 after buying an additional 122,970 shares during the period. JPMorgan Chase & Co. increased its position in shares of Apollo Commercial Real Estate Finance by 111.8% during the third quarter. JPMorgan Chase & Co. now owns 689,903 shares of the real estate investment trust's stock worth $6,989,000 after buying an additional 364,098 shares during the period. Allianz Asset Management GmbH increased its position in shares of Apollo Commercial Real Estate Finance by 117.5% during the third quarter. Allianz Asset Management GmbH now owns 304,979 shares of the real estate investment trust's stock worth $3,089,000 after buying an additional 164,740 shares during the period. Principal Financial Group Inc. increased its position in shares of Apollo Commercial Real Estate Finance by 21.9% during the third quarter. Principal Financial Group Inc. now owns 774,154 shares of the real estate investment trust's stock worth $7,842,000 after buying an additional 139,336 shares during the period. Finally, Carmel Capital Partners LLC increased its position in shares of Apollo Commercial Real Estate Finance by 40.0% during the fourth quarter. Carmel Capital Partners LLC now owns 314,501 shares of the real estate investment trust's stock worth $3,044,000 after buying an additional 89,887 shares during the period. 54.43% of the stock is currently owned by institutional investors and hedge funds.

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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