Arbor Realty Trust (NYSE:ABR) Shares Gap Down on Disappointing Earnings

Key Points

• Shares dropped after an earnings miss: Arbor reported Q EPS of $0.07 vs. $0.16 expected, causing the stock to gap down from $8.17 to an open of $7.28 and trade around $7.16 on heavy volume.
• Very high dividend yield but likely unsustainable: The company paid a $0.30 quarterly dividend (annualized $1.20) for a 16.9% yield, yet the payout ratio is 218.18%, signaling dividend risk.
• Analyst sentiment is negative: MarketBeat shows a consensus rating of "Reduce" with a $9.00 price target and multiple recent downgrades (one Buy, one Hold, four Sell).

Shares of Arbor Realty Trust (NYSE:ABR - Get Free Report) gapped down prior to trading on Friday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $8.17, but opened at $7.28. Arbor Realty Trust shares last traded at $7.1550, with a volume of 2,740,338 shares.

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). Arbor Realty Trust had a return on equity of 10.10% and a net margin of 15.83%.The firm had revenue of $119.67 million for the quarter, compared to the consensus estimate of $109.86 million.

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Arbor Realty Trust Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Tuesday, March 24th. Shareholders of record on Tuesday, March 10th were paid a dividend of $0.30 per share. The ex-dividend date of this dividend was Tuesday, March 10th. This represents a $1.20 annualized dividend and a yield of 16.9%. Arbor Realty Trust's payout ratio is 218.18%.

Analyst Ratings Changes

Several equities research analysts have issued reports on ABR shares. Keefe, Bruyette & Woods lifted their price target on Arbor Realty Trust from $7.50 to $8.00 and gave the stock an "underperform" rating in a research note on Wednesday, March 4th. Weiss Ratings lowered Arbor Realty Trust from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Tuesday, February 24th. Wall Street Zen lowered Arbor Realty Trust from a "hold" rating to a "sell" rating in a research note on Saturday, March 28th. Citizens Jmp decreased their price objective on Arbor Realty Trust from $12.00 to $11.00 and set a "market outperform" rating on the stock in a report on Thursday, April 2nd. Finally, Zacks Research upgraded Arbor Realty Trust from a "strong sell" rating to a "hold" rating in a report on Monday. One 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. According to MarketBeat, the company presently has a consensus rating of "Reduce" and a consensus price target of $9.00.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. GraniteShares Advisors LLC purchased a new position in shares of Arbor Realty Trust during the fourth quarter valued at about $2,699,000. Azora Capital LP bought a new stake in Arbor Realty Trust during the 3rd quarter valued at approximately $7,897,000. Hudson Bay Capital Management LP bought a new stake in Arbor Realty Trust during the 3rd quarter valued at approximately $4,942,000. Lighthouse Investment Partners LLC grew its holdings in shares of Arbor Realty Trust by 184.2% during the 3rd quarter. Lighthouse Investment Partners LLC now owns 348,371 shares of the real estate investment trust's stock worth $4,254,000 after acquiring an additional 225,775 shares during the period. Finally, SG Americas Securities LLC raised its position in shares of Arbor Realty Trust by 165.0% in the 4th quarter. SG Americas Securities LLC now owns 117,042 shares of the real estate investment trust's stock worth $908,000 after acquiring an additional 72,873 shares in the last quarter. 57.25% of the stock is owned by hedge funds and other institutional investors.

Arbor Realty Trust Price Performance

The stock has a market cap of $1.37 billion, a P/E ratio of 12.95 and a beta of 1.24. The company has a debt-to-equity ratio of 2.41, a quick ratio of 394.59 and a current ratio of 394.59. The firm has a 50-day moving average price of $7.84 and a 200-day moving average price of $8.34.

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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