Arbor Realty Trust (NYSE:ABR) Receives Consensus Recommendation of "Reduce" from Brokerages

Key Points

• Arbor Realty Trust has a consensus “Reduce” rating: Four of six analysts recommend selling, one recommends holding and one recommends buying. The average 12-month price target is $6.50.
• ABR shares fell 3.1% to $4.92, near their 52-week low of $4.86. The stock’s 50-day and 200-day moving averages were $5.23 and $6.79, respectively.
• The company reported quarterly EPS of $0.07, below the $0.16 analyst consensus, while revenue exceeded expectations. Arbor declared a $0.17 quarterly dividend, implying a 13.8% yield, but its 174.36% payout ratio raises sustainability concerns.

Arbor Realty Trust (NYSE:ABR - Get Free Report) has received an average recommendation of "Reduce" from the six brokerages that are presently covering the stock, MarketBeat reports. Four research analysts have rated the stock with a sell rating, one has given a hold rating and one has issued a buy rating on the company. The average 1-year price objective among brokers that have covered the stock in the last year is $6.50.

Several research analysts have weighed in on ABR shares. JPMorgan Chase & Co. upgraded shares of Arbor Realty Trust from an "underweight" rating to a "neutral" rating and lowered their price objective for the stock from $7.00 to $5.50 in a report on Friday, July 17th. Zacks Research lowered shares of Arbor Realty Trust from a "hold" rating to a "strong sell" rating in a research report on Thursday, July 16th. Piper Sandler decreased their target price on Arbor Realty Trust from $8.00 to $5.50 and set an "underweight" rating for the company in a research report on Thursday, July 2nd. Citizens Jmp lowered 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 research report on Thursday, May 14th. Finally, Weiss Ratings reissued a "sell (d+)" rating on shares of Arbor Realty Trust in a report on Friday, May 22nd.

Arbor Realty Trust Trading Down 3.1%

NYSE ABR traded down $0.15 during trading hours on Thursday, reaching $4.92. The company's stock had a trading volume of 469,905 shares, compared to its average volume of 4,033,532. The stock has a market cap of $947.38 million, a P/E ratio of 12.65 and a beta of 1.15. The firm has a fifty day simple moving average of $5.23 and a 200-day simple moving average of $6.79. The company has a debt-to-equity ratio of 2.71, a current ratio of 428.41 and a quick ratio of 428.41. Arbor Realty Trust has a 52 week low of $4.86 and a 52 week high of $12.57.

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). Arbor Realty Trust had a return on equity of 8.49% and a net margin of 12.73%.The company had revenue of $119.67 million for the quarter, compared to the consensus estimate of $109.86 million. Equities analysts forecast that Arbor Realty Trust will post 0.25 earnings per share for the current fiscal year.

Arbor Realty Trust Cuts Dividend

The firm also recently disclosed 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 dividend on an annualized basis and a dividend yield of 13.8%. The ex-dividend date was Friday, May 22nd. Arbor Realty Trust's payout ratio is presently 174.36%.

Insider Transactions at Arbor Realty Trust

In other news, insider David Erwin Friedman bought 8,840 shares of the firm's stock in a transaction that occurred on Monday, May 11th. The shares were bought at an average cost of $6.84 per share, with a total value of $60,465.60. Following the completion of the purchase, the insider directly owned 68,478 shares in the company, valued at $468,389.52. This represents a 14.82% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is available at this link. 4.20% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Arbor Realty Trust

Several institutional investors and hedge funds have recently modified their holdings of ABR. Royal Bank of Canada grew its stake in Arbor Realty Trust by 3.5% in the first quarter. Royal Bank of Canada now owns 132,181 shares of the real estate investment trust's stock worth $1,553,000 after purchasing an additional 4,470 shares during the period. Jones Financial Companies Lllp boosted its position 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 last quarter. United Services Automobile Association purchased a new position in shares of Arbor Realty Trust during the first quarter valued at approximately $145,000. Focus Partners Wealth purchased a new position in shares of Arbor Realty Trust in the 1st quarter worth $161,000. Finally, Russell Investments Group Ltd. grew its stake in shares of Arbor Realty Trust by 61.0% during the 2nd quarter. Russell Investments Group Ltd. now owns 4,705 shares of the real estate investment trust's stock valued at $50,000 after purchasing an additional 1,782 shares during the period. 57.25% of the stock is owned by hedge funds and other institutional investors.

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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