Investors Buy High Volume of Put Options on Apollo Commercial Real Estate Finance (NYSE:ARI)

Key Points

• Put-option activity surged: Traders bought 5,187 put options in Apollo Commercial Real Estate Finance, a 1,417% increase over the average daily volume of 342 contracts.
• ARI shares rose 1% to $6.92 but remain well below the 52-week high of $11.24. The company reported a quarterly loss of $2.62 per share, while analysts expect a full-year loss of $0.18 per share.
• Analyst sentiment is mixed, with two Buy, three Hold, and one Sell rating; the average consensus is Hold with an $11.33 price target. Institutional investors own 54.43% of the stock.

Apollo Commercial Real Estate Finance (NYSE:ARI - Get Free Report) saw unusually large options trading activity on Monday. Traders acquired 5,187 put options on the company. This represents an increase of 1,417% compared to the average daily volume of 342 put options.

Apollo Commercial Real Estate Finance Trading Up 1.0%

Apollo Commercial Real Estate Finance stock traded up $0.07 during trading hours on Monday, hitting $6.92. 815,575 shares of the stock traded hands, compared to its average volume of 2,481,830. Apollo Commercial Real Estate Finance has a one year low of $6.43 and a one year high of $11.24. The firm's 50-day moving average price is $8.14 and its two-hundred day moving average price is $9.84. The company has a market cap of $889.50 million, a PE ratio of 8.65 and a beta of 1.36.

Apollo Commercial Real Estate Finance (NYSE:ARI - Get Free Report) last announced its earnings results on Monday, August 10th. The real estate investment trust reported ($2.62) earnings per share (EPS) for the quarter. Apollo Commercial Real Estate Finance had a return on equity of 7.39% and a net margin of 55.49%.The firm had revenue of $44.38 million during the quarter. On average, sell-side analysts expect that Apollo Commercial Real Estate Finance will post -0.18 earnings per share for the current fiscal year.

Apollo Commercial Real Estate Finance Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, July 15th. Shareholders of record on Tuesday, June 30th were given a dividend of $3.75 per share. This represents a $15.00 annualized dividend and a yield of 216.8%. This is a positive change from Apollo Commercial Real Estate Finance's previous quarterly dividend of $0.25. Apollo Commercial Real Estate Finance's dividend payout ratio (DPR) is currently 125.00%.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of ARI. Bessemer Group Inc. grew its holdings in Apollo Commercial Real Estate Finance by 388.7% in the first quarter. Bessemer Group Inc. now owns 3,255 shares of the real estate investment trust's stock worth $34,000 after purchasing an additional 2,589 shares during the period. Public Employees Retirement System of Ohio purchased a new position in shares of Apollo Commercial Real Estate Finance during the second quarter valued at approximately $47,000. Farther Finance Advisors LLC lifted its holdings in shares of Apollo Commercial Real Estate Finance by 60.2% during the fourth quarter. Farther Finance Advisors LLC now owns 5,037 shares of the real estate investment trust's stock valued at $49,000 after purchasing an additional 1,892 shares during the last quarter. Parallel Advisors LLC boosted its position in shares of Apollo Commercial Real Estate Finance by 61.7% in the 1st quarter. Parallel Advisors LLC now owns 4,656 shares of the real estate investment trust's stock worth $49,000 after purchasing an additional 1,777 shares in the last quarter. Finally, Danske Bank A S bought a new stake in shares of Apollo Commercial Real Estate Finance in the 3rd quarter worth approximately $50,000. 54.43% of the stock is currently owned by institutional investors.

Analyst Upgrades and Downgrades

A number of brokerages recently issued reports on ARI. Bank of America initiated coverage on Apollo Commercial Real Estate Finance in a report on Tuesday, May 5th. They set a "neutral" rating and a $11.50 price target on the stock. Weiss Ratings upgraded Apollo Commercial Real Estate Finance from a "sell (d+)" rating to a "hold (c)" rating in a research report on Friday, August 14th. Zacks Research cut Apollo Commercial Real Estate Finance from a "hold" rating to a "strong sell" rating in a research note on Monday, August 3rd. BTIG Research downgraded Apollo Commercial Real Estate Finance from a "buy" rating to a "neutral" rating in a report on Thursday, June 25th. Finally, Wall Street Zen cut shares of Apollo Commercial Real Estate Finance from a "hold" rating to a "sell" rating in a report on Saturday. Two analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, Apollo Commercial Real Estate Finance presently has an average rating of "Hold" and an average target price of $11.33.

About Apollo Commercial Real Estate Finance

Apollo Commercial Real Estate Finance, Inc NYSE: ARI is a real estate finance company structured as a real estate investment trust (REIT). The company focuses on originating, acquiring and managing a diversified portfolio of commercial real estate debt and preferred equity investments. As an externally managed vehicle, ARI leverages the expertise and resources of an affiliate of Apollo Global Management, a leading global alternative investment manager.

ARI's investment strategy is centered on providing first mortgage loans, mezzanine debt financing, bridge loans and preferred equity across a broad range of property types, including office, retail, industrial and multifamily assets.

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