Ares Commercial Real Estate Corporation (NYSE:ACRE) Given Average Rating of "Reduce" by Brokerages

Key Points

• Ares Commercial Real Estate Corporation (NYSE:ACRE) has received an average rating of "Reduce" from six brokerage firms, with one sell rating and five hold ratings.
• The company announced a quarterly dividend of $0.15 per share, which yields an annualized rate of 12.5%, despite a payout ratio of -176.47%.
• Recent price targets from analysts show a downward trend, with estimates now ranging from $4.25 to $4.50 following various ratings adjustments.

Ares Commercial Real Estate Corporation (NYSE:ACRE - Get Free Report) has earned a consensus recommendation of "Reduce" from the six ratings firms that are covering the company, MarketBeat reports. One investment analyst has rated the stock with a sell rating and five have issued a hold rating on the company. The average 1 year price target among brokerages that have updated their coverage on the stock in the last year is $5.3125.

A number of research firms recently weighed in on ACRE. Keefe, Bruyette & Woods decreased their target price on Ares Commercial Real Estate from $4.80 to $4.25 and set a "market perform" rating on the stock in a research report on Wednesday, August 6th. Wall Street Zen lowered Ares Commercial Real Estate from a "hold" rating to a "strong sell" rating in a report on Saturday, August 9th. UBS Group lowered their price objective on Ares Commercial Real Estate from $5.00 to $4.50 and set a "neutral" rating on the stock in a research report on Wednesday, August 6th. Finally, Zacks Research raised Ares Commercial Real Estate to a "hold" rating in a research report on Monday, August 11th.

Ares Commercial Real Estate Price Performance

NYSE ACRE opened at $4.79 on Wednesday. The company's fifty day moving average is $4.61 and its two-hundred day moving average is $4.56. Ares Commercial Real Estate has a 52-week low of $3.35 and a 52-week high of $7.83. The firm has a market capitalization of $263.50 million, a price-to-earnings ratio of -14.09 and a beta of 1.32.

Ares Commercial Real Estate Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, October 15th. Stockholders of record on Tuesday, September 30th will be given a dividend of $0.15 per share. This represents a $0.60 annualized dividend and a dividend yield of 12.5%. The ex-dividend date is Tuesday, September 30th. Ares Commercial Real Estate's payout ratio is -176.47%.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Arlington Trust Co LLC bought a new stake in shares of Ares Commercial Real Estate in the 1st quarter valued at approximately $28,000. CWM LLC boosted its stake in Ares Commercial Real Estate by 94.3% in the 2nd quarter. CWM LLC now owns 6,997 shares of the real estate investment trust's stock valued at $33,000 after buying an additional 3,396 shares in the last quarter. Strs Ohio acquired a new stake in Ares Commercial Real Estate in the 1st quarter valued at $47,000. McIlrath & Eck LLC bought a new stake in Ares Commercial Real Estate in the fourth quarter valued at $54,000. Finally, State of Wyoming acquired a new position in Ares Commercial Real Estate during the second quarter worth $59,000. Institutional investors own 41.34% of the company's stock.

Ares Commercial Real Estate Company Profile

Ares Commercial Real Estate Corporation, a specialty finance company, originates and invests in commercial real estate (CRE) loans and related investments in the United States. It provides a range of financing solutions for the owners, operators, and sponsors of CRE properties. The company originates senior mortgage loans, subordinate debt and preferred equity products, mezzanine loans, and other CRE investments, including commercial mortgage-backed securities.

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