Ares Commercial Real Estate Corporation (NYSE:ACRE) Receives Consensus Recommendation of "Reduce" from Analysts

Key Points

• Ares Commercial Real Estate Corporation (NYSE: ACRE) has been given a consensus rating of "Reduce" by five analysts, with one recommending a sell and four advising to hold.
• The average 12-month price target for ACRE is $5.58, with recent target adjustments ranging from $3.75 to $5.00 by various analysts.
• Ares Commercial Real Estate recently announced a quarterly dividend of $0.15 per share, representing an annual yield of 13.10%, despite a payout ratio of -240.00%.

Shares of Ares Commercial Real Estate Corporation (NYSE:ACRE - Get Free Report) have been assigned a consensus rating of "Reduce" from the five research firms that are presently covering the stock, MarketBeat.com reports. One research analyst has rated the stock with a sell recommendation and four have issued a hold recommendation on the company. The average 1 year target price among analysts that have issued a report on the stock in the last year is $5.58.

Several equities analysts recently issued reports on ACRE shares. Keefe, Bruyette & Woods boosted their price objective on Ares Commercial Real Estate from $4.50 to $4.80 and gave the company a "market perform" rating in a research report on Thursday, July 10th. UBS Group boosted their price objective on Ares Commercial Real Estate from $3.75 to $5.00 and gave the company a "neutral" rating in a research report on Wednesday, May 21st. Finally, JMP Securities reiterated a "market perform" rating on shares of Ares Commercial Real Estate in a research report on Monday, April 21st.

Institutional Investors Weigh In On Ares Commercial Real Estate

Several large investors have recently made changes to their positions in the stock. CWM LLC boosted its holdings in shares of 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 during the last quarter. Inspire Investing LLC raised its stake in Ares Commercial Real Estate by 10.8% in the 2nd quarter. Inspire Investing LLC now owns 82,402 shares of the real estate investment trust's stock valued at $393,000 after acquiring an additional 8,048 shares during the period. Abel Hall LLC bought a new stake in Ares Commercial Real Estate in the 2nd quarter valued at $148,000. Farther Finance Advisors LLC raised its stake in Ares Commercial Real Estate by 51.7% in the 2nd quarter. Farther Finance Advisors LLC now owns 24,424 shares of the real estate investment trust's stock valued at $117,000 after acquiring an additional 8,323 shares during the period. Finally, Voya Investment Management LLC raised its stake in Ares Commercial Real Estate by 21.8% in the 1st quarter. Voya Investment Management LLC now owns 24,105 shares of the real estate investment trust's stock valued at $112,000 after acquiring an additional 4,309 shares during the period. Institutional investors and hedge funds own 41.34% of the company's stock.

Ares Commercial Real Estate Price Performance

Shares of Ares Commercial Real Estate stock traded up $0.01 during trading on Tuesday, hitting $4.60. 273,091 shares of the company were exchanged, compared to its average volume of 352,752. The firm has a market capitalization of $253.27 million, a P/E ratio of -18.42, a price-to-earnings-growth ratio of 1.85 and a beta of 1.31. Ares Commercial Real Estate has a 1-year low of $3.35 and a 1-year high of $7.89. The firm's fifty day moving average price is $4.74 and its 200 day moving average price is $4.77.

Ares Commercial Real Estate Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, July 15th. Shareholders of record on Monday, June 30th were given a dividend of $0.15 per share. This represents a $0.60 dividend on an annualized basis and a yield of 13.03%. The ex-dividend date was Monday, June 30th. Ares Commercial Real Estate's dividend payout ratio (DPR) is currently -240.00%.

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.