Arbor Realty Trust (NYSE:ABR) Hits New 1-Year Low - Here's Why

Key Points

• Arbor Realty Trust shares fell 4.8% to a new 52-week low of $4.80, below both its 50-day and 200-day moving averages. The stock now has a “Reduce” consensus rating, with four analysts rating it Sell and a consensus price target of $6.50.
• The company’s latest quarterly earnings missed expectations, with earnings per share of $0.07 versus a projected $0.16, although revenue exceeded estimates at $119.67 million.
• Arbor pays a quarterly dividend of $0.17, equivalent to a 14.1% annualized yield, but its payout ratio is elevated at 174.36%, raising concerns about dividend sustainability.

Arbor Realty Trust (NYSE:ABR - Get Free Report)'s share price reached a new 52-week low during trading on Thursday . The company traded as low as $4.80 and last traded at $4.8160, with a volume of 1307792 shares traded. The stock had previously closed at $5.08.

Analyst Ratings Changes

ABR has been the topic of several research analyst reports. Piper Sandler dropped their price objective on Arbor Realty Trust from $8.00 to $5.50 and set an "underweight" rating on the stock in a research note on Thursday, July 2nd. Zacks Research downgraded Arbor Realty Trust from a "hold" rating to a "strong sell" rating in a research note on Thursday, July 16th. Weiss Ratings reissued a "sell (d+)" rating on shares of Arbor Realty Trust in a report on Friday, May 22nd. Citizens Jmp cut their price target on Arbor Realty Trust from $9.50 to $8.50 and set a "market outperform" rating for the company in a report on Thursday, May 14th. Finally, Keefe, Bruyette & Woods reduced their price objective on shares of 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. One equities research analyst has rated the stock with a Buy rating, one has issued a Hold rating and four have issued a Sell rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of "Reduce" and a consensus price target of $6.50.

Arbor Realty Trust Trading Down 4.8%

The business has a fifty day moving average price of $5.23 and a 200-day moving average price of $6.79. The company has a quick ratio of 428.41, a current ratio of 428.41 and a debt-to-equity ratio of 2.71. The company has a market cap of $930.07 million, a P/E ratio of 12.42 and a beta of 1.15.

Arbor Realty Trust (NYSE:ABR - Get Free Report) last announced its earnings results on Friday, May 8th. The real estate investment trust reported $0.07 earnings per share for the quarter, missing analysts' consensus estimates of $0.16 by ($0.09). The firm had revenue of $119.67 million for the quarter, compared to the consensus estimate of $109.86 million. Arbor Realty Trust had a return on equity of 8.49% and a net margin of 12.73%. On average, analysts forecast that Arbor Realty Trust will post 0.25 earnings per share for the current year.

Arbor Realty Trust Cuts Dividend

The company also recently announced a quarterly dividend, which was paid on Friday, June 5th. Stockholders of record on Friday, May 22nd were issued a dividend of $0.17 per share. The ex-dividend date of this dividend was Friday, May 22nd. This represents a $0.68 dividend on an annualized basis and a dividend yield of 14.1%. Arbor Realty Trust's dividend payout ratio (DPR) is currently 174.36%.

Insider Activity

In related news, insider David Erwin Friedman sold 7,685 shares of the company's stock in a transaction dated Monday, May 11th. The shares were sold at an average price of $6.87, for a total value of $52,795.95. Following the transaction, the insider directly owned 59,638 shares in the company, valued at approximately $409,713.06. This represents a 11.42% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Insiders own 4.20% of the company's stock.

Institutional Trading of Arbor Realty Trust

A number of institutional investors have recently bought and sold shares of the business. Bessemer Group Inc. bought a new position in shares of Arbor Realty Trust during the first quarter worth approximately $29,000. Smartleaf Asset Management LLC grew its position in Arbor Realty Trust by 73.5% during the second quarter. Smartleaf Asset Management LLC now owns 2,774 shares of the real estate investment trust's stock worth $29,000 after buying an additional 1,175 shares in the last quarter. Bayforest Capital Ltd acquired a new stake in Arbor Realty Trust during the fourth quarter worth approximately $39,000. Garton & Associates Financial Advisors LLC bought a new position in Arbor Realty Trust during the 4th quarter worth $42,000. Finally, Quantbot Technologies LP bought a new position in Arbor Realty Trust during the 2nd quarter worth $46,000. Institutional investors own 57.25% of the company's stock.

Arbor Realty Trust Company Profile

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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