Arbor Realty Trust (NYSE:ABR) Sets New 52-Week Low - What's Next?

Key Points

• Arbor Realty Trust fell to a new 52-week low, trading as low as $4.97 amid heavy volume, after previously closing at $5.27.
• Analyst sentiment remains weak, with multiple firms cutting price targets or issuing sell ratings; the consensus rating is “Reduce” and the average target price is $7.38.
• The company recently cut its dividend to $0.17 per share quarterly, though the yield remains high at 13.6%; its latest earnings also missed EPS expectations, even as revenue topped estimates.

Arbor Realty Trust (NYSE:ABR - Get Free Report)'s share price reached a new 52-week low during mid-day trading on Monday . The stock traded as low as $4.97 and last traded at $4.99, with a volume of 5222319 shares. The stock had previously closed at $5.27.

Wall Street Analysts Forecast Growth

A number of research analysts recently weighed in on the stock. Citizens Jmp lowered their target price on shares of Arbor Realty Trust from $9.50 to $8.50 and set a "market outperform" rating on the stock in a research note on Thursday, May 14th. Keefe, Bruyette & Woods decreased their target price on Arbor Realty Trust from $7.50 to $6.50 and set an "underperform" rating on the stock in a research note on Tuesday, May 12th. Zacks Research raised Arbor Realty Trust from a "strong sell" rating to a "hold" rating in a report on Monday, May 4th. Wall Street Zen downgraded Arbor Realty Trust from a "hold" rating to a "sell" rating in a research note on Saturday, March 28th. Finally, Weiss Ratings reaffirmed a "sell (d+)" rating on shares of Arbor Realty Trust in a report on Friday, May 22nd. One investment analyst has rated the stock with a Buy rating, one has given a Hold rating and four have issued a Sell rating to the company's stock. According to MarketBeat.com, Arbor Realty Trust has an average rating of "Reduce" and a consensus price target of $7.38.

Arbor Realty Trust Price Performance

The firm has a market cap of $959.88 million, a P/E ratio of 12.79 and a beta of 1.15. The company has a debt-to-equity ratio of 2.71, a current ratio of 428.41 and a quick ratio of 428.41. The stock's 50-day simple moving average is $5.95 and its two-hundred day simple moving average is $7.16.

Arbor Realty Trust (NYSE:ABR - Get Free Report) last released its earnings results on Friday, May 8th. The real estate investment trust reported $0.07 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.16 by ($0.09). The firm had revenue of $119.67 million during 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%. Equities research 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 announced a quarterly dividend, which was paid on Friday, June 5th. Shareholders of record on Friday, May 22nd were given a dividend of $0.17 per share. This represents a $0.68 annualized dividend and a dividend yield of 13.6%. The ex-dividend date was Friday, May 22nd. Arbor Realty Trust's payout ratio is 174.36%.

Insider Activity at Arbor Realty Trust

In other Arbor Realty Trust news, insider David Erwin Friedman purchased 8,840 shares of Arbor Realty Trust stock in a transaction dated Monday, May 11th. The shares were purchased at an average cost of $6.84 per share, for a total transaction of $60,465.60. Following the completion of the acquisition, the insider owned 68,478 shares in the company, valued at $468,389.52. This represents a 14.82% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available at this hyperlink. Corporate insiders own 4.20% of the company's stock.

Institutional Trading of Arbor Realty Trust

A number of hedge funds and other institutional investors have recently bought and sold shares of ABR. Smartleaf Asset Management LLC boosted its stake in shares of 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 valued at $29,000 after purchasing an additional 1,175 shares during the period. Geneos Wealth Management Inc. lifted its holdings in Arbor Realty Trust by 33.4% during the 2nd quarter. Geneos Wealth Management Inc. now owns 5,092 shares of the real estate investment trust's stock valued at $54,000 after buying an additional 1,276 shares in the last quarter. Oregon Public Employees Retirement Fund boosted its position in Arbor Realty Trust by 3.2% in the 4th quarter. Oregon Public Employees Retirement Fund now owns 44,752 shares of the real estate investment trust's stock valued at $347,000 after buying an additional 1,400 shares during the period. NFSG Corp boosted its position in Arbor Realty Trust by 10.0% in the 1st quarter. NFSG Corp now owns 17,025 shares of the real estate investment trust's stock valued at $131,000 after buying an additional 1,553 shares during the period. Finally, MML Investors Services LLC grew its stake in Arbor Realty Trust by 2.9% in the 2nd quarter. MML Investors Services LLC now owns 62,115 shares of the real estate investment trust's stock worth $665,000 after acquiring an additional 1,749 shares in the last quarter. Hedge funds and other institutional investors own 57.25% of the company's stock.

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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