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

Key Points

• Ares Commercial Real Estate Corporation (NYSE:ACRE) has received an average rating of "Reduce" from brokerages, with one sell rating and five hold ratings from analysts.
• UBS Group lowered its price target for ACRE shares from $5.00 to $4.50, while Zacks Research upgraded it to a "hold" rating.
• The company announced a quarterly dividend of $0.15 per share, yielding 12.9%, with record investors expected to receive it on October 15th.

Shares of Ares Commercial Real Estate Corporation (NYSE:ACRE - Get Free Report) have received a consensus rating of "Reduce" from the six brokerages that are presently covering the stock, Marketbeat reports. One investment analyst has rated the stock with a sell recommendation and five have issued a hold recommendation on the company. The average 12 month target price among brokerages that have covered the stock in the last year is $5.3125.

Several brokerages have recently issued reports on ACRE. Wall Street Zen lowered Ares Commercial Real Estate from a "hold" rating to a "strong sell" rating in a research report on Saturday, August 9th. Keefe, Bruyette & Woods reduced their target price on shares of 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. Zacks Research raised shares of Ares Commercial Real Estate to a "hold" rating in a research note on Monday, August 11th. Finally, UBS Group dropped their target price on shares of Ares Commercial Real Estate from $5.00 to $4.50 and set a "neutral" rating on the stock in a research note on Wednesday, August 6th.

Ares Commercial Real Estate Stock Up 0.5%

Shares of NYSE ACRE traded up $0.03 during trading hours on Friday, reaching $4.63. 121,705 shares of the stock traded hands, compared to its average volume of 553,697. The company has a market capitalization of $254.40 million, a P/E ratio of -13.66 and a beta of 1.33. The company's 50-day simple moving average is $4.62 and its two-hundred day simple moving average is $4.59. Ares Commercial Real Estate has a 52-week low of $3.35 and a 52-week high of $7.83.

Ares Commercial Real Estate Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 15th. Investors of record on Tuesday, September 30th will be given a dividend of $0.15 per share. The ex-dividend date of this dividend is Tuesday, September 30th. This represents a $0.60 annualized dividend and a dividend yield of 13.0%. Ares Commercial Real Estate's dividend payout ratio (DPR) is -176.47%.

Institutional Investors Weigh In On Ares Commercial Real Estate

Large investors have recently added to or reduced their stakes in the stock. Wells Fargo & Company MN raised its holdings in Ares Commercial Real Estate by 3.9% in the 4th quarter. Wells Fargo & Company MN now owns 50,424 shares of the real estate investment trust's stock worth $297,000 after purchasing an additional 1,905 shares during the period. Price T Rowe Associates Inc. MD grew its stake in shares of Ares Commercial Real Estate by 4.3% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 73,116 shares of the real estate investment trust's stock valued at $431,000 after acquiring an additional 2,982 shares during the period. MetLife Investment Management LLC increased its holdings in Ares Commercial Real Estate by 13.0% in the 4th quarter. MetLife Investment Management LLC now owns 27,859 shares of the real estate investment trust's stock worth $164,000 after acquiring an additional 3,215 shares in the last quarter. Victory Capital Management Inc. raised its stake in Ares Commercial Real Estate by 2.7% during the 1st quarter. Victory Capital Management Inc. now owns 124,250 shares of the real estate investment trust's stock worth $575,000 after acquiring an additional 3,250 shares during the period. Finally, CWM LLC lifted its holdings in Ares Commercial Real Estate by 94.3% during the second quarter. CWM LLC now owns 6,997 shares of the real estate investment trust's stock valued at $33,000 after purchasing an additional 3,396 shares in the last quarter. Institutional investors own 41.34% of the company's stock.

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.