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

Key Points

• Ares Commercial Real Estate has a consensus “Reduce” rating from seven analysts, with two sells, four holds and one buy. The average 12-month price target is $5.25, compared with the stock’s recent price of $4.45.
• ACRE reported quarterly EPS of $0.12, exceeding the $0.04 consensus estimate, while revenue of $14.36 million also surpassed expectations.
• The company declared a quarterly dividend of $0.15 per share, equivalent to $0.60 annually and a 13.5% yield; institutional investors own 41.34% of the stock.

Ares Commercial Real Estate Corporation (NYSE:ACRE - Get Free Report) has received a consensus rating of "Reduce" from the seven brokerages that are currently covering the stock, MarketBeat.com reports. Two research analysts have rated the stock with a sell rating, four have assigned a hold rating and one has given a buy rating to the company. The average 1-year price objective among brokers that have issued a report on the stock in the last year is $5.25.

ACRE has been the topic of several recent analyst reports. UBS Group began coverage on shares of Ares Commercial Real Estate in a research note on Tuesday, June 2nd. They issued a "neutral" rating and a $5.50 target price on the stock. JPMorgan Chase & Co. decreased their price target on shares of Ares Commercial Real Estate from $5.50 to $5.00 and set a "neutral" rating on the stock in a report on Friday, July 17th. Wall Street Zen upgraded Ares Commercial Real Estate from a "sell" rating to a "hold" rating in a research report on Saturday, August 15th. Keefe, Bruyette & Woods dropped their price objective on Ares Commercial Real Estate from $6.00 to $5.50 and set an "outperform" rating for the company in a research note on Wednesday, May 13th. Finally, Zacks Research raised Ares Commercial Real Estate from a "strong sell" rating to a "hold" rating in a research note on Friday, July 10th.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Cura Wealth Advisors LLC purchased a new position in Ares Commercial Real Estate in the 2nd quarter worth approximately $4,060,000. North Ground Capital purchased a new stake in shares of Ares Commercial Real Estate during the 2nd quarter valued at $5,544,000. Alpine Global Management LLC raised its position in shares of Ares Commercial Real Estate by 27.8% during the 4th quarter. Alpine Global Management LLC now owns 759,110 shares of the real estate investment trust's stock valued at $3,629,000 after buying an additional 165,193 shares in the last quarter. GSA Capital Partners LLP bought a new stake in shares of Ares Commercial Real Estate during the 2nd quarter worth $176,000. Finally, Sei Investments Co. lifted its holdings in shares of Ares Commercial Real Estate by 88.8% during the 1st quarter. Sei Investments Co. now owns 84,596 shares of the real estate investment trust's stock worth $406,000 after acquiring an additional 39,800 shares during the last quarter. 41.34% of the stock is currently owned by institutional investors.

Ares Commercial Real Estate Stock Down 2.6%

ACRE stock opened at $4.45 on Wednesday. The stock has a 50-day simple moving average of $4.57 and a two-hundred day simple moving average of $4.83. Ares Commercial Real Estate has a twelve month low of $4.14 and a twelve month high of $5.89. The firm has a market capitalization of $246.89 million, a PE ratio of -55.62 and a beta of 1.16.

Ares Commercial Real Estate (NYSE:ACRE - Get Free Report) last announced its quarterly earnings results on Tuesday, August 4th. The real estate investment trust reported $0.12 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.04 by $0.08. The firm had revenue of $14.36 million for the quarter, compared to the consensus estimate of $10.96 million. Ares Commercial Real Estate had a negative net margin of 8.04% and a positive return on equity of 4.08%. On average, equities research analysts anticipate that Ares Commercial Real Estate will post 0.39 EPS for the current fiscal year.

Ares Commercial Real Estate Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, October 15th. Stockholders of record on Wednesday, 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 13.5%. The ex-dividend date is Wednesday, September 30th. Ares Commercial Real Estate's dividend payout ratio (DPR) is -750.00%.

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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