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

Key Points

• Analyst consensus: Reduce — Six brokers rate ACRE an average of "Reduce" (2 sell, 3 hold, 1 buy) with a one‑year average price target of about $5.33.
• ACRE declared a quarterly dividend of $0.15 (annualized $0.60), implying a 12.6% yield; the ex‑dividend date is March 31 and the payment date is April 15.
• Insider selling occurred on Jan. 14 (VP Anton Feingold and CFO Jeffrey Gonzales), and insiders sold 35,585 shares (~$175,434) over the past 90 days, leaving insiders with about 1.8% ownership.

Shares of Ares Commercial Real Estate Corporation (NYSE:ACRE - Get Free Report) have been assigned an average recommendation of "Reduce" from the six ratings firms that are currently covering the stock, Marketbeat reports. Two equities research analysts have rated the stock with a sell recommendation, three have issued a hold recommendation and one has given a buy recommendation to the company. The average 1-year price target among brokers that have issued a report on the stock in the last year is $5.3333.

ACRE has been the subject of a number of recent research reports. Wells Fargo & Company raised their target price on shares of Ares Commercial Real Estate from $4.00 to $5.00 and gave the company an "underweight" rating in a report on Thursday, February 12th. Weiss Ratings reissued a "sell (d+)" rating on shares of Ares Commercial Real Estate in a research note on Monday, December 29th. Keefe, Bruyette & Woods boosted their target price on shares of Ares Commercial Real Estate from $5.50 to $6.00 and gave the stock an "outperform" rating in a report on Wednesday, February 11th. Finally, Zacks Research downgraded shares of Ares Commercial Real Estate from a "strong-buy" rating to a "hold" rating in a report on Wednesday, February 4th.

Insider Activity

In other news, VP Anton Feingold sold 7,606 shares of the business's stock in a transaction that occurred on Wednesday, January 14th. The stock was sold at an average price of $4.93, for a total transaction of $37,497.58. Following the transaction, the vice president owned 92,754 shares of the company's stock, valued at approximately $457,277.22. The trade was a 7.58% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CFO Jeffrey Michael Gonzales sold 6,218 shares of the stock in a transaction on Wednesday, January 14th. The shares were sold at an average price of $4.93, for a total value of $30,654.74. Following the sale, the chief financial officer owned 88,533 shares in the company, valued at $436,467.69. The trade was a 6.56% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 35,585 shares of company stock valued at $175,434. 1.80% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Ares Commercial Real Estate

Several institutional investors have recently made changes to their positions in ACRE. Russell Investments Group Ltd. boosted its stake in shares of Ares Commercial Real Estate by 456.0% during the 3rd quarter. Russell Investments Group Ltd. now owns 6,033 shares of the real estate investment trust's stock worth $27,000 after purchasing an additional 4,948 shares during the period. Triumph Capital Management purchased a new stake in Ares Commercial Real Estate in the 3rd quarter worth about $38,000. BNP Paribas Financial Markets lifted its stake in Ares Commercial Real Estate by 100.3% in the third quarter. BNP Paribas Financial Markets now owns 10,367 shares of the real estate investment trust's stock worth $47,000 after purchasing an additional 5,192 shares during the last quarter. Strs Ohio purchased a new position in shares of Ares Commercial Real Estate during the first quarter valued at approximately $47,000. Finally, 180 Wealth Advisors LLC purchased a new position in shares of Ares Commercial Real Estate during the fourth quarter valued at approximately $49,000. Institutional investors own 41.34% of the company's stock.

Ares Commercial Real Estate Price Performance

NYSE ACRE opened at $4.77 on Friday. Ares Commercial Real Estate has a 1-year low of $3.35 and a 1-year high of $5.89. The business has a 50 day simple moving average of $5.04 and a two-hundred day simple moving average of $4.93. The stock has a market capitalization of $263.84 million, a PE ratio of -238.25 and a beta of 1.20.

Ares Commercial Real Estate Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, April 15th. Stockholders of record on Tuesday, March 31st will be paid a $0.15 dividend. This represents a $0.60 annualized dividend and a dividend yield of 12.6%. The ex-dividend date of this dividend is Tuesday, March 31st. Ares Commercial Real Estate's dividend payout ratio (DPR) is presently -3,000.00%.

About Ares Commercial Real Estate

Ares Commercial Real Estate Corporation NYSE: ACRE is a publicly traded real estate investment trust (REIT) primarily focused on commercial real estate debt investments. Externally managed by an affiliate of Ares Management Corporation, ACRE seeks to generate attractive risk-adjusted returns through its diversified portfolio of CRE financing strategies. The company specializes in originating, acquiring, financing and managing first mortgages, mezzanine loans, preferred equity and other structured finance products.

Since its inception, Ares Commercial Real Estate has targeted a broad range of property types, including multifamily, office, industrial, retail and hospitality assets.

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