Apollo Commercial Real Estate Finance (NYSE:ARI) Reaches New 12-Month Low - Should You Sell?

Key Points

• ARI plunged 63.9%, reaching a new 52-week low of $2.30 before last trading at $2.33, compared with its prior close of $6.45.
• Analyst sentiment is mixed but averages a “Hold” rating; the consensus price target is $11.33, while ratings range from Buy to Sell.
• The REIT reported a quarterly loss of $2.62 per share on $44.38 million in revenue, and institutional investors own 54.43% of its stock.

Apollo Commercial Real Estate Finance (NYSE:ARI - Get Free Report)'s stock price reached a new 52-week low during trading on Friday. The stock traded as low as $2.30 and last traded at $2.33, with a volume of 9,956,466 shares traded. The stock had previously closed at $6.45.

Analyst Ratings Changes

A number of analysts have recently weighed in on ARI shares. Weiss Ratings lowered Apollo Commercial Real Estate Finance from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Thursday, October 8th. Wall Street Zen upgraded Apollo Commercial Real Estate Finance from a "sell" rating to a "hold" rating in a report on Sunday, October 25th. Finally, Zacks Research raised Apollo Commercial Real Estate Finance from a "strong sell" rating to a "hold" rating in a research note on Tuesday, September 15th. Two research analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Hold" and an average price target of $11.33.

Apollo Commercial Real Estate Finance Trading Down 63.9%

The stock's fifty day moving average price is $6.42 and its two-hundred day moving average price is $9.11. The firm has a market capitalization of $299.50 million, a price-to-earnings ratio of 7.68 and a beta of 1.40.

Apollo Commercial Real Estate Finance (NYSE:ARI - Get Free Report) last issued its earnings results on Tuesday, August 11th. The real estate investment trust reported ($2.62) 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 for the quarter. Analysts anticipate that Apollo Commercial Real Estate Finance will post -0.18 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Apollo Commercial Real Estate Finance

Several hedge funds and other institutional investors have recently made changes to their positions in ARI. Bessemer Group Inc. increased its stake 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 valued at $34,000 after purchasing an additional 2,589 shares during the last quarter. Integrated Wealth Concepts LLC purchased a new stake in shares of Apollo Commercial Real Estate Finance during the 2nd quarter worth approximately $36,000. Public Employees Retirement System of Ohio purchased a new stake in shares of Apollo Commercial Real Estate Finance during the 2nd quarter worth approximately $47,000. Parallel Advisors LLC boosted its holdings 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 valued at $49,000 after buying an additional 1,777 shares in the last quarter. Finally, Markowski Investments acquired a new position in shares of Apollo Commercial Real Estate Finance in the 2nd quarter valued at $55,000. Institutional investors and hedge funds own 54.43% of the company's stock.

About Apollo Commercial Real Estate Finance

Apollo Commercial Real Estate Finance, Inc NYSE: ARI is a real estate investment trust focused on originating, acquiring, investing in and managing commercial real estate debt and related investments. The company primarily seeks income from commercial real estate loans and other credit investments rather than directly owning and operating properties.

Its investment activities may include senior mortgage loans, subordinate and mezzanine financing, commercial mortgage-backed securities and other commercial real estate-related debt investments.

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