Keefe, Bruyette & Woods Issues Pessimistic Forecast for Ares Commercial Real Estate (NYSE:ACRE) Stock Price

Key Points

• Keefe, Bruyette & Woods has downgraded the price target for Ares Commercial Real Estate (NYSE: ACRE) from $4.80 to $4.25, maintaining a "market perform" rating.
• Despite the downgrade, UBS Group raised its target price for ACRE from $3.75 to $5.00, highlighting mixed analyst sentiments surrounding the stock.
• The stock is currently trading at $4.18 with a consensus target price of $5.31 and an institutional ownership of 41.34%.

Ares Commercial Real Estate (NYSE:ACRE - Free Report) had its price target lowered by Keefe, Bruyette & Woods from $4.80 to $4.25 in a research note issued to investors on Wednesday,Benzinga reports. The brokerage currently has a market perform rating on the real estate investment trust's stock.

ACRE has been the topic of several other reports. JMP Securities reissued a "market perform" rating on shares of Ares Commercial Real Estate in a report on Monday, April 21st. UBS Group increased their price target on shares of Ares Commercial Real Estate from $3.75 to $5.00 and gave the stock a "neutral" rating in a research report on Wednesday, May 21st. One analyst has rated the stock with a sell rating and five have given a hold rating to the company. According to MarketBeat.com, Ares Commercial Real Estate currently has an average rating of "Hold" and an average target price of $5.31.

Ares Commercial Real Estate Stock Performance

Shares of NYSE ACRE traded down $0.01 during mid-day trading on Wednesday, reaching $4.45. The company had a trading volume of 96,467 shares, compared to its average volume of 564,310. The firm has a market cap of $244.50 million, a price-to-earnings ratio of -13.07, a PEG ratio of 1.67 and a beta of 1.33. The business's 50-day simple moving average is $4.71 and its 200 day simple moving average is $4.71. Ares Commercial Real Estate has a one year low of $3.35 and a one year high of $7.83.

Ares Commercial Real Estate Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, October 15th. Shareholders of record on Tuesday, September 30th will be given a $0.15 dividend. This represents a $0.60 dividend on an annualized basis and a yield of 13.5%. The ex-dividend date is Tuesday, September 30th. Ares Commercial Real Estate's payout ratio is currently -176.47%.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the business. Wells Fargo & Company MN boosted its stake in shares of Ares Commercial Real Estate by 3.9% in the 4th quarter. Wells Fargo & Company MN now owns 50,424 shares of the real estate investment trust's stock valued at $297,000 after purchasing an additional 1,905 shares in the last quarter. Price T Rowe Associates Inc. MD increased its position in Ares Commercial Real Estate by 4.3% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 73,116 shares of the real estate investment trust's stock worth $431,000 after purchasing an additional 2,982 shares in the last quarter. MetLife Investment Management LLC lifted its stake in Ares Commercial Real Estate by 13.0% in the 4th quarter. MetLife Investment Management LLC now owns 27,859 shares of the real estate investment trust's stock valued at $164,000 after purchasing an additional 3,215 shares during the last quarter. Victory Capital Management Inc. boosted its position in Ares Commercial Real Estate by 2.7% in the first quarter. Victory Capital Management Inc. now owns 124,250 shares of the real estate investment trust's stock valued at $575,000 after buying an additional 3,250 shares in the last quarter. Finally, CWM LLC boosted its position in Ares Commercial Real Estate by 94.3% in the second quarter. CWM LLC now owns 6,997 shares of the real estate investment trust's stock valued at $33,000 after buying an additional 3,396 shares in the last quarter. Institutional investors and hedge funds own 41.34% of the company's stock.

Ares Commercial Real Estate Company Profile

Ares Commercial Real Estate Corporation, a specialty finance company, originates and invests in commercial real estate (CRE) loans and related investments in the United States. It provides a range of financing solutions for the owners, operators, and sponsors of CRE properties. The company originates senior mortgage loans, subordinate debt and preferred equity products, mezzanine loans, and other CRE investments, including commercial mortgage-backed securities.