Stock Traders Buy High Volume of Arbor Realty Trust Put Options (NYSE:ABR)

Key Points

• Bearish options activity surged: Traders purchased 23,912 put options on Arbor Realty Trust, an 813% increase over the average daily volume of 2,618 contracts.
• Shares fell 7.1% to $2.87, near the company’s one-year low of $2.78. The stock remains under pressure, with analysts assigning an average “Reduce” rating and a $5.62 price target.
• Despite the weakness, director William Green increased his holdings by 12.63%, while institutional ownership stands at 57.25%. The company also maintains a quarterly dividend of $0.17, equal to a 23.7% annualized yield, though its payout ratio is exceptionally high at 971.43%.

Arbor Realty Trust (NYSE:ABR - Get Free Report) was the recipient of some unusual options trading activity on Friday. Traders acquired 23,912 put options on the company. This is an increase of 813% compared to the average daily volume of 2,618 put options.

Insiders Place Their Bets

In other Arbor Realty Trust news, Director William Green acquired 25,951 shares of the company's stock in a transaction on Monday, August 31st. The stock was acquired at an average cost of $5.07 per share, with a total value of $131,571.57. Following the purchase, the director directly owned 231,369 shares of the company's stock, valued at approximately $1,173,040.83. This represents a 12.63% increase in their position. The purchase was disclosed in a document filed with the SEC, which is available through this hyperlink. Corporate insiders own 4.20% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in ABR. BlackRock Inc. purchased a new position in Arbor Realty Trust during the second quarter valued at approximately $143,448,000. Bank of New York Mellon Corp purchased a new stake in Arbor Realty Trust during the second quarter worth $7,702,000. Miller Value Partners LLC bought a new stake in Arbor Realty Trust during the 2nd quarter valued at $3,312,000. Legal & General Group Plc purchased a new position in shares of Arbor Realty Trust in the 2nd quarter valued at $2,326,000. Finally, Odyssean LLC increased its holdings in shares of Arbor Realty Trust by 227.4% in the 2nd quarter. Odyssean LLC now owns 570,598 shares of the real estate investment trust's stock valued at $3,093,000 after acquiring an additional 396,292 shares during the period. Hedge funds and other institutional investors own 57.25% of the company's stock.

Arbor Realty Trust Trading Down 7.1%

Shares of NYSE:ABR traded down $0.22 during trading hours on Friday, hitting $2.87. 3,578,815 shares of the company's stock traded hands, compared to its average volume of 4,255,339. The firm has a market capitalization of $535.80 million, a P/E ratio of 41.03 and a beta of 1.22. The business has a fifty day moving average price of $4.70 and a 200-day moving average price of $5.66. Arbor Realty Trust has a 1 year low of $2.78 and a 1 year high of $12.18. The company has a debt-to-equity ratio of 2.33, a current ratio of 478.85 and a quick ratio of 478.85.

Arbor Realty Trust (NYSE:ABR - Get Free Report) last issued its quarterly earnings results on Friday, July 31st. The real estate investment trust reported $0.10 earnings per share for the quarter, topping the consensus estimate of $0.05 by $0.05. Arbor Realty Trust had a return on equity of 7.38% and a net margin of 6.24%.The firm had revenue of $117.83 million for the quarter, compared to the consensus estimate of $107.75 million. Equities analysts expect that Arbor Realty Trust will post 0.23 earnings per share for the current year.

Arbor Realty Trust Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, August 28th. Shareholders of record on Friday, August 14th were given a $0.17 dividend. This represents a $0.68 annualized dividend and a yield of 23.7%. The ex-dividend date of this dividend was Friday, August 14th. Arbor Realty Trust's payout ratio is 971.43%.

Analysts Set New Price Targets

A number of research analysts recently commented on the stock. Keefe, Bruyette & Woods lowered their price target on shares of Arbor Realty Trust from $5.50 to $5.00 and set an "underperform" rating for the company in a report on Monday, August 3rd. Piper Sandler restated an "underweight" rating and set a $3.50 price objective on shares of Arbor Realty Trust in a research report on Friday. Zacks Research raised Arbor Realty Trust from a "strong sell" rating to a "hold" rating in a research note on Monday, August 31st. Weiss Ratings downgraded Arbor Realty Trust from a "sell (d+)" rating to a "sell (d)" rating in a research report on Thursday, July 30th. Finally, JPMorgan Chase & Co. upgraded Arbor Realty Trust from an "underweight" rating to a "neutral" rating and decreased their price target for the company from $7.00 to $5.50 in a report on Friday, July 17th. Three investment analysts have rated the stock with a Hold rating and three have assigned a Sell rating to the company. According to MarketBeat, the stock currently has an average rating of "Reduce" and an average price target of $5.62.

Arbor Realty Trust Company Profile

Arbor Realty Trust, Inc is a real estate investment trust that provides financing for multifamily and other commercial real estate properties. The company originates, acquires, and invests in a range of structured finance products, including bridge loans, mezzanine loans, preferred equity investments, and other real estate-related debt investments.

Through its lending platforms and subsidiaries, Arbor Realty Trust also provides agency lending services for multifamily properties. These activities include originating and servicing loans through programs associated with Fannie Mae, Freddie Mac, and the U.S.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.