JPMorgan Chase & Co. Issues Pessimistic Forecast for Ares Commercial Real Estate (NYSE:ACRE) Stock Price

Key Points

• JPMorgan Chase cut its price target on Ares Commercial Real Estate from $6.00 to $5.50 and kept a "neutral" rating, implying roughly a 6.5% upside from the current share price.
• Analyst coverage is mixed—one Buy, four Hold and two Sell—with MarketBeat showing an average rating of "Reduce" and an average target price of $5.38.
• ACRE traded at $5.17 (down $0.11) with a market cap of $285.98M, a 12‑month range of $3.44–$5.89, and about 41.34% institutional ownership.

Ares Commercial Real Estate (NYSE:ACRE - Get Free Report) had its target price cut by research analysts at JPMorgan Chase & Co. from $6.00 to $5.50 in a research report issued to clients and investors on Thursday,Benzinga reports. The brokerage presently has a "neutral" rating on the real estate investment trust's stock. JPMorgan Chase & Co.'s target price would indicate a potential upside of 6.49% from the company's current price.

ACRE has been the topic of several other reports. Wells Fargo & Company upped their price objective on shares of 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. Weiss Ratings reaffirmed a "sell (d+)" rating on shares of Ares Commercial Real Estate in a research note on Monday, December 29th. Zacks Research cut shares of Ares Commercial Real Estate from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, February 4th. Finally, Keefe, Bruyette & Woods increased their price target on shares of Ares Commercial Real Estate from $5.50 to $6.00 and gave the company an "outperform" rating in a research note on Wednesday, February 11th. One equities research analyst has rated the stock with a Buy rating, four have assigned a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat, the company currently has an average rating of "Reduce" and an average target price of $5.38.

Ares Commercial Real Estate Stock Performance

Ares Commercial Real Estate stock traded down $0.11 during trading hours on Thursday, hitting $5.17. 188,942 shares of the stock were exchanged, compared to its average volume of 514,381. The stock has a market capitalization of $285.98 million, a P/E ratio of -258.25 and a beta of 1.20. Ares Commercial Real Estate has a 12 month low of $3.44 and a 12 month high of $5.89. The business's 50-day moving average is $5.02 and its two-hundred day moving average is $4.94.

Hedge Funds Weigh In On Ares Commercial Real Estate

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. LPL Financial LLC boosted its stake in Ares Commercial Real Estate by 8.9% in the fourth quarter. LPL Financial LLC now owns 27,950 shares of the real estate investment trust's stock valued at $134,000 after acquiring an additional 2,284 shares during the last quarter. Private Advisor Group LLC boosted its stake in Ares Commercial Real Estate by 9.0% in the third quarter. Private Advisor Group LLC now owns 41,019 shares of the real estate investment trust's stock valued at $185,000 after acquiring an additional 3,371 shares during the last quarter. HRT Financial LP boosted its stake in Ares Commercial Real Estate by 36.0% in the fourth quarter. HRT Financial LP now owns 16,790 shares of the real estate investment trust's stock valued at $80,000 after acquiring an additional 4,445 shares during the last quarter. Evoke Wealth LLC boosted its stake in Ares Commercial Real Estate by 2.2% in the fourth quarter. Evoke Wealth LLC now owns 232,262 shares of the real estate investment trust's stock valued at $1,145,000 after acquiring an additional 4,936 shares during the last quarter. Finally, Russell Investments Group Ltd. boosted its stake in Ares Commercial Real Estate by 456.0% in the third quarter. Russell Investments Group Ltd. now owns 6,033 shares of the real estate investment trust's stock valued at $27,000 after acquiring an additional 4,948 shares during the last quarter. 41.34% of the stock is owned by institutional investors.

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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