Arbor Realty Trust (NYSE:ABR) Given Average Recommendation of "Reduce" by Analysts

Key Points

• Wall Street sentiment is bearish on Arbor Realty Trust, with six brokerages assigning an average rating of “Reduce.” Four analysts rate it a sell, and the average 1-year price target is $7.38.
• The company missed earnings estimates in its latest quarterly report, posting EPS of $0.07 versus expectations of $0.16, though revenue came in above forecasts at $119.67 million.
• Arbor Realty Trust also cut its dividend to $0.17 per quarter, equal to a 13% annualized yield, but with a very high payout ratio of 174.36% that may signal pressure on sustainability.

Shares of Arbor Realty Trust (NYSE:ABR - Get Free Report) have received an average rating of "Reduce" from the six brokerages that are covering the company, MarketBeat Ratings reports. Four analysts have rated the stock with a sell recommendation, one has issued a hold recommendation and one has assigned a buy recommendation to the company. The average 1-year target price among brokerages that have covered the stock in the last year is $7.3750.

A number of brokerages recently issued reports on ABR. Keefe, Bruyette & Woods lowered their price target on Arbor Realty Trust from $7.50 to $6.50 and set an "underperform" rating for the company in a research report on Tuesday, May 12th. Zacks Research raised shares of Arbor Realty Trust from a "strong sell" rating to a "hold" rating in a research note on Monday, May 4th. Piper Sandler dropped their price target on shares of Arbor Realty Trust from $8.00 to $5.50 and set an "underweight" rating for the company in a research note on Thursday. Citizens Jmp cut their price target on shares of Arbor Realty Trust from $9.50 to $8.50 and set a "market outperform" rating on the stock in a report on Thursday, May 14th. Finally, Weiss Ratings reissued a "sell (d+)" rating on shares of Arbor Realty Trust in a research report on Friday, May 22nd.

Insiders Place Their Bets

In other news, insider David Erwin Friedman sold 7,685 shares of the business's stock in a transaction on Monday, May 11th. The shares were sold at an average price of $6.87, for a total transaction of $52,795.95. Following the completion of the sale, the insider directly owned 59,638 shares of the company's stock, valued at approximately $409,713.06. The trade was a 11.42% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 4.20% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of ABR. Royal Bank of Canada raised its position in Arbor Realty Trust by 3.5% during the 1st quarter. Royal Bank of Canada now owns 132,181 shares of the real estate investment trust's stock valued at $1,553,000 after purchasing an additional 4,470 shares in the last quarter. Jones Financial Companies Lllp increased its stake in shares of Arbor Realty Trust by 25,163.2% during the first quarter. Jones Financial Companies Lllp now owns 4,800 shares of the real estate investment trust's stock valued at $56,000 after buying an additional 4,781 shares during the period. United Services Automobile Association bought a new stake in shares of Arbor Realty Trust in the first quarter valued at about $145,000. Focus Partners Wealth bought a new stake in shares of Arbor Realty Trust in the first quarter valued at about $161,000. Finally, Russell Investments Group Ltd. raised its holdings in shares of Arbor Realty Trust by 61.0% in the second quarter. Russell Investments Group Ltd. now owns 4,705 shares of the real estate investment trust's stock valued at $50,000 after acquiring an additional 1,782 shares in the last quarter. Institutional investors own 57.25% of the company's stock.

Arbor Realty Trust Trading Down 0.5%

NYSE ABR traded down $0.03 during trading hours on Friday, hitting $5.24. 5,481,493 shares of the company were exchanged, compared to its average volume of 3,893,192. The stock has a 50-day moving average price of $5.95 and a 200 day moving average price of $7.16. The company has a quick ratio of 428.41, a current ratio of 428.41 and a debt-to-equity ratio of 2.71. Arbor Realty Trust has a 52 week low of $4.99 and a 52 week high of $12.57. The stock has a market cap of $1.01 billion, a PE ratio of 13.44 and a beta of 1.15.

Arbor Realty Trust (NYSE:ABR - Get Free Report) last issued its quarterly earnings data on Friday, May 8th. The real estate investment trust reported $0.07 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.16 by ($0.09). The company had revenue of $119.67 million for the quarter, compared to analysts' expectations of $109.86 million. Arbor Realty Trust had a net margin of 12.73% and a return on equity of 8.49%. Analysts forecast that Arbor Realty Trust will post 0.38 earnings per share for the current fiscal year.

Arbor Realty Trust Cuts Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, June 5th. Stockholders of record on Friday, May 22nd were issued a $0.17 dividend. This represents a $0.68 annualized dividend and a dividend yield of 13.0%. The ex-dividend date was Friday, May 22nd. Arbor Realty Trust's dividend payout ratio is presently 174.36%.

About Arbor Realty Trust

Arbor Realty Trust, Inc NYSE: ABR is a real estate investment trust specializing in the origination, acquisition, financing, structuring and management of commercial real estate loans and securities. The company focuses primarily on multifamily and commercial mortgage lending, targeting properties such as apartment communities, senior housing and healthcare facilities. Through both agency and non-agency channels, Arbor Realty Trust seeks to deliver liquidity solutions to borrowers while generating stable, risk-adjusted returns for its shareholders.

Core business activities include originating first-mortgage loans secured by multifamily and mixed-use properties, as well as providing mezzanine financing and preferred equity investments.

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