Arbor Realty Trust (NYSE:ABR) Shares Down 6% After Earnings Miss

Key Points

• Arbor Realty Trust shares fell 6% after the company reported quarterly EPS of $0.07, well below the consensus estimate of $0.16. The stock traded as low as $6.70 during the session.
• The company’s revenue came in above expectations at $119.67 million versus the $109.86 million forecast, even as profitability remained mixed with a 12.73% net margin and 8.49% return on equity.
• Arbor Realty Trust also cut its quarterly dividend to $0.17 per share, implying a 9.9% annualized yield. Analysts currently have a consensus rating of “Reduce” with an average price target of $9.00.

Arbor Realty Trust (NYSE:ABR - Get Free Report)'s share price traded down 6% during mid-day trading on Monday after the company announced weaker than expected quarterly earnings. The stock traded as low as $6.70 and last traded at $6.7750. 2,152,154 shares traded hands during trading, a decline of 43% from the average session volume of 3,772,484 shares. The stock had previously closed at $7.21.

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 company had revenue of $119.67 million during the quarter, compared to analyst estimates of $109.86 million. Arbor Realty Trust had a net margin of 12.73% and a return on equity of 8.49%.

Arbor Realty Trust Cuts Dividend

The business also recently declared a quarterly dividend, which will be paid on Friday, June 5th. Investors of record on Friday, May 22nd will be given a $0.17 dividend. This represents a $0.68 annualized dividend and a yield of 9.9%. The ex-dividend date is Friday, May 22nd. Arbor Realty Trust's payout ratio is 307.69%.

Wall Street Analyst Weigh In

Several equities analysts recently issued reports on the company. Keefe, Bruyette & Woods boosted their price target on Arbor Realty Trust from $7.50 to $8.00 and gave the company an "underperform" rating in a research report on Wednesday, March 4th. Wall Street Zen cut Arbor Realty Trust from a "hold" rating to a "sell" rating in a research report on Saturday, March 28th. Weiss Ratings cut Arbor Realty Trust from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Tuesday, February 24th. Zacks Research upgraded Arbor Realty Trust from a "strong sell" rating to a "hold" rating in a research report on Monday, May 4th. Finally, Citizens Jmp dropped their target price on Arbor Realty Trust from $12.00 to $11.00 and set a "market outperform" rating on the stock in a research report on Thursday, April 2nd. One research analyst has rated the stock with a Buy rating, one has issued a Hold rating and four have given a Sell rating to the company's stock. According to data from MarketBeat, the company presently has a consensus rating of "Reduce" and an average target price of $9.00.

Institutional Investors Weigh In On Arbor Realty Trust

Several institutional investors have recently modified their holdings of ABR. Bessemer Group Inc. purchased a new stake in shares of Arbor Realty Trust during the 1st quarter worth approximately $29,000. Smartleaf Asset Management LLC boosted its stake in shares of Arbor Realty Trust by 73.5% during the 2nd quarter. Smartleaf Asset Management LLC now owns 2,774 shares of the real estate investment trust's stock worth $29,000 after acquiring an additional 1,175 shares in the last quarter. Bayforest Capital Ltd purchased a new stake in shares of Arbor Realty Trust during the 4th quarter worth approximately $39,000. Rothschild Investment LLC boosted its stake in shares of Arbor Realty Trust by 1,264.6% during the 3rd quarter. Rothschild Investment LLC now owns 3,275 shares of the real estate investment trust's stock worth $40,000 after acquiring an additional 3,035 shares in the last quarter. Finally, Garton & Associates Financial Advisors LLC purchased a new stake in shares of Arbor Realty Trust during the 4th quarter worth approximately $42,000. Hedge funds and other institutional investors own 57.25% of the company's stock.

Arbor Realty Trust Price Performance

The company has a current ratio of 428.41, a quick ratio of 394.59 and a debt-to-equity ratio of 2.71. The company has a 50 day moving average price of $7.84 and a 200 day moving average price of $8.34. The firm has a market cap of $1.32 billion, a PE ratio of 17.63 and a beta of 1.24.

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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