Ares Commercial Real Estate Corporation (NYSE:ACRE) Stock Has Consensus Target Price of $5.00 According to Analysts

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 $5.00.
• ACRE shares opened at $3.17, near their 52-week low of $3.16, versus a 52-week high of $5.89. The stock’s 50-day and 200-day moving averages are $4.20 and $4.58, respectively.
• The company exceeded quarterly earnings expectations, reporting $0.12 EPS versus a $0.04 consensus estimate and $14.36 million in revenue. It also paid a quarterly dividend of $0.15 per share, representing an annualized yield of approximately 19%.

Ares Commercial Real Estate Corporation (NYSE:ACRE - Get Free Report) has earned a consensus rating of "Reduce" from the seven brokerages that are currently covering the company, Marketbeat reports. Two analysts have rated the stock with a sell rating, four have issued a hold rating and one has issued a buy rating on the company. The average twelve-month target price among brokers that have covered the stock in the last year is $5.00.

Several equities research analysts recently commented on the stock. Weiss Ratings cut shares of Ares Commercial Real Estate from a "sell (d+)" rating to a "sell (d)" rating in a research report on Wednesday, October 14th. Zacks Research raised shares of Ares Commercial Real Estate from a "strong sell" rating to a "hold" rating in a report on Friday, July 10th. Keefe, Bruyette & Woods lowered their target price on shares of Ares Commercial Real Estate from $5.50 to $4.50 and set an "outperform" rating on the stock in a report on Friday, October 9th. Citizens Jmp reiterated a "market perform" rating on shares of Ares Commercial Real Estate in a research note on Thursday, July 9th. Finally, Wall Street Zen upgraded Ares Commercial Real Estate from a "sell" rating to a "hold" rating in a research report on Saturday, August 15th.

Ares Commercial Real Estate Stock Performance

Shares of Ares Commercial Real Estate stock opened at $3.17 on Thursday. The stock has a market capitalization of $175.59 million, a price-to-earnings ratio of -39.56 and a beta of 1.19. Ares Commercial Real Estate has a 52 week low of $3.16 and a 52 week high of $5.89. The firm has a fifty day moving average of $4.20 and a two-hundred day moving average of $4.58.

Ares Commercial Real Estate (NYSE:ACRE - Get Free Report) last announced its quarterly earnings results on Monday, August 3rd. The real estate investment trust reported $0.12 EPS for the quarter, beating analysts' consensus estimates of $0.04 by $0.08. The company had revenue of $14.36 million during the quarter, compared to analysts' expectations of $10.96 million. Ares Commercial Real Estate had a positive return on equity of 4.08% and a negative net margin of 8.04%. As a group, research analysts forecast that Ares Commercial Real Estate will post 0.39 EPS for the current fiscal year.

Ares Commercial Real Estate Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Thursday, October 15th. Investors of record on Wednesday, September 30th were paid a dividend of $0.15 per share. This represents a $0.60 dividend on an annualized basis and a yield of 19.0%. The ex-dividend date of this dividend was Wednesday, September 30th. Ares Commercial Real Estate's dividend payout ratio (DPR) is currently -750.00%.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Highland Investment Advisors LLC bought a new position in shares of Ares Commercial Real Estate in the 2nd quarter worth $27,000. Optiver Holding B.V. grew its stake in Ares Commercial Real Estate by 603.3% in the 1st quarter. Optiver Holding B.V. now owns 6,513 shares of the real estate investment trust's stock valued at $31,000 after buying an additional 5,587 shares in the last quarter. Nisa Investment Advisors LLC purchased a new position in Ares Commercial Real Estate during the 3rd quarter valued at about $48,000. State of Wyoming bought a new position in Ares Commercial Real Estate in the 2nd quarter valued at $59,000. Finally, Attessa Capital LLC bought a new position in Ares Commercial Real Estate in the 2nd quarter worth about $76,000. Institutional investors own 41.34% of the company's stock.

About Ares Commercial Real Estate

Ares Commercial Real Estate Corporation NYSE: ACRE is a real estate investment trust focused on commercial real estate finance. The company originates and invests in loans and other credit-related investments secured by commercial properties, with an emphasis on providing financing to property owners and investors.

Its investment activities include senior mortgage loans, mezzanine loans, subordinated loans and other forms of commercial real estate debt. The company generally targets properties such as multifamily, office, industrial, retail, hospitality and other commercial assets, including both stabilized and transitional properties.

Ares Commercial Real Estate primarily serves borrowers and real estate sponsors in the United States.

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