Ares Commercial Real Estate (NYSE:ACRE) Share Price Crosses Above Two Hundred Day Moving Average - Time to Sell?

Key Points

• Acre crossed above its 200‑day moving average, trading as high as $5.11 and last at $5.0950 versus a 200‑day MA of $4.93 on volume of 288,420 shares.
• The company announced a quarterly dividend of $0.15 (annualized $0.60), implying a 11.8% yield with an ex-dividend date of March 31 and payment on April 15.
• Analyst and insider signals are mixed: the consensus rating is "Reduce" with an average target of $5.33, while insiders sold 35,585 shares recently and institutional ownership stands at about 41.3%.

Ares Commercial Real Estate Corporation (NYSE:ACRE - Get Free Report) crossed above its 200-day moving average during trading on Monday . The stock has a 200-day moving average of $4.93 and traded as high as $5.11. Ares Commercial Real Estate shares last traded at $5.0950, with a volume of 288,420 shares.

Analyst Ratings Changes

ACRE has been the subject of a number of research analyst reports. Zacks Research lowered Ares Commercial Real Estate from a "strong-buy" rating to a "hold" rating in a report on Wednesday, February 4th. Keefe, Bruyette & Woods lifted their price target on Ares Commercial Real Estate from $5.50 to $6.00 and gave the company an "outperform" rating in a report on Wednesday, February 11th. Weiss Ratings reissued a "sell (d+)" rating on shares of Ares Commercial Real Estate in a research report on Monday, December 29th. Finally, Wells Fargo & Company increased their price objective on Ares Commercial Real Estate from $4.00 to $5.00 and gave the stock an "underweight" rating in a research note on Thursday, February 12th. One research analyst has rated the stock with a Buy rating, three have issued a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat.com, Ares Commercial Real Estate presently has an average rating of "Reduce" and an average target price of $5.33.

Ares Commercial Real Estate Stock Performance

The business's 50 day simple moving average is $5.03 and its 200-day simple moving average is $4.93. The company has a market cap of $282.11 million, a price-to-earnings ratio of -254.75 and a beta of 1.20.

Ares Commercial Real Estate Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, April 15th. Shareholders of record on Tuesday, March 31st will be paid a $0.15 dividend. The ex-dividend date is Tuesday, March 31st. This represents a $0.60 dividend on an annualized basis and a yield of 11.8%. Ares Commercial Real Estate's payout ratio is -3,000.00%.

Insiders Place Their Bets

In other news, VP Anton Feingold sold 7,606 shares of the firm's stock in a transaction dated Wednesday, January 14th. The stock was sold at an average price of $4.93, for a total transaction of $37,497.58. Following the completion of the sale, the vice president directly owned 92,754 shares of the company's stock, valued at $457,277.22. This trade represents a 7.58% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Bryan Patrick Donohoe sold 21,761 shares of Ares Commercial Real Estate stock in a transaction dated Wednesday, January 14th. The shares were sold at an average price of $4.93, for a total value of $107,281.73. Following the sale, the chief executive officer owned 250,197 shares of the company's stock, valued at approximately $1,233,471.21. This represents a 8.00% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 35,585 shares of company stock valued at $175,434 in the last three months. Insiders own 2.30% of the company's stock.

Institutional Trading of Ares Commercial Real Estate

A number of institutional investors have recently added to or reduced their stakes in ACRE. Russell Investments Group Ltd. increased 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 last quarter. Triumph Capital Management acquired a new stake in shares of Ares Commercial Real Estate in the 3rd quarter valued at $38,000. BNP Paribas Financial Markets boosted its holdings 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 in the last quarter. Strs Ohio bought a new stake in Ares Commercial Real Estate in the first quarter worth $47,000. Finally, 180 Wealth Advisors LLC acquired a new position in Ares Commercial Real Estate during the fourth quarter worth $49,000. 41.34% of the stock is currently owned by institutional investors and hedge funds.

Ares Commercial Real Estate Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.