Ares Commercial Real Estate Corporation (NYSE:ACRE) Receives $5.31 Consensus Price Target from 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.

Shares of Ares Commercial Real Estate Corporation (NYSE:ACRE - Get Free Report) have earned a consensus recommendation of "Hold" from the five analysts that are presently covering the firm, MarketBeat reports. Five analysts have rated the stock with a hold rating. The average 1 year target price among brokerages that have updated their coverage on the stock in the last year is $4.75.

Several brokerages have commented on ACRE. Zacks Research upgraded Ares Commercial Real Estate to a "hold" rating in a research note on Monday, August 11th. Keefe, Bruyette & Woods dropped their price target on Ares Commercial Real Estate from $4.80 to $4.25 and set a "market perform" rating for the company in a research report on Wednesday, August 6th. Wall Street Zen downgraded Ares Commercial Real Estate from a "hold" rating to a "strong sell" rating in a research report on Saturday, August 9th. Finally, UBS Group dropped their price target on Ares Commercial Real Estate from $5.00 to $4.50 and set a "neutral" rating for the company in a research report on Wednesday, August 6th.

Ares Commercial Real Estate Stock Down 0.2%

ACRE traded down $0.01 during trading hours on Wednesday, hitting $4.82. The stock had a trading volume of 716,936 shares, compared to its average volume of 389,606. The company's fifty day simple moving average is $4.61 and its 200 day simple moving average is $4.56. Ares Commercial Real Estate has a 1 year low of $3.35 and a 1 year high of $7.63. The stock has a market cap of $265.15 million, a PE ratio of -14.18 and a beta of 1.32.

Ares Commercial Real Estate Dividend Announcement

The firm also recently declared 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 dividend on an annualized basis and a dividend yield of 12.4%. The ex-dividend date is Tuesday, September 30th. Ares Commercial Real Estate's dividend payout ratio (DPR) is -176.47%.

Hedge Funds Weigh In On Ares Commercial Real Estate

A number of large investors have recently modified their holdings of ACRE. Marshall Wace LLP purchased a new position in shares of Ares Commercial Real Estate during the 2nd quarter valued at about $2,685,000. Millennium Management LLC raised its holdings in shares of Ares Commercial Real Estate by 505.7% during the 4th quarter. Millennium Management LLC now owns 316,969 shares of the real estate investment trust's stock valued at $1,867,000 after buying an additional 264,641 shares in the last quarter. Cura Wealth Advisors LLC raised its holdings in shares of Ares Commercial Real Estate by 32.1% during the 1st quarter. Cura Wealth Advisors LLC now owns 963,485 shares of the real estate investment trust's stock valued at $4,461,000 after buying an additional 234,258 shares in the last quarter. Delphi Financial Group Inc. purchased a new position in shares of Ares Commercial Real Estate during the 1st quarter valued at about $995,000. Finally, Northern Trust Corp raised its holdings in shares of Ares Commercial Real Estate by 32.3% during the 4th quarter. Northern Trust Corp now owns 605,491 shares of the real estate investment trust's stock valued at $3,566,000 after buying an additional 147,990 shares in the last quarter. 41.34% of the stock is owned by hedge funds and other institutional investors.

About Ares Commercial Real Estate

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.