Apollo Commercial Real Estate Finance (NYSE:ARI) Sets New 1-Year Low - Here's Why

Key Points

• Apollo Commercial Real Estate Finance shares hit a new 52-week low, falling to $6.25 and trading below both its 50-day average of $6.75 and 200-day average of $9.34.
• Analyst sentiment is mixed but centered on “Hold”: two analysts rate the stock Buy and four rate it Hold, with a consensus price target of $11.33.
• The company reported a quarterly loss of $2.62 per share and raised its dividend to $3.75 per share, though the resulting stated yield was an unusually high 239.5% and the payout ratio reached 125%.

Apollo Commercial Real Estate Finance (NYSE:ARI - Get Free Report)'s share price reached a new 52-week low during mid-day trading on Thursday . The company traded as low as $6.25 and last traded at $6.2640, with a volume of 3991390 shares trading hands. The stock had previously closed at $6.41.

Analysts Set New Price Targets

Several research firms recently issued reports on ARI. Weiss Ratings cut Apollo Commercial Real Estate Finance from a "hold (c)" rating to a "hold (c-)" rating in a report on Monday, August 31st. BTIG Research cut Apollo Commercial Real Estate Finance from a "buy" rating to a "neutral" rating in a research report on Thursday, June 25th. Wall Street Zen raised Apollo Commercial Real Estate Finance from a "sell" rating to a "hold" rating in a research note on Saturday, September 19th. Finally, Zacks Research upgraded Apollo Commercial Real Estate Finance from a "strong sell" rating to a "hold" rating in a report on Tuesday, September 15th. Two investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Hold" and an average target price of $11.33.

Apollo Commercial Real Estate Finance Stock Performance

The firm's 50 day moving average price is $6.75 and its two-hundred day moving average price is $9.34. The firm has a market cap of $805.17 million, a PE ratio of 7.83 and a beta of 1.36.

Apollo Commercial Real Estate Finance (NYSE:ARI - Get Free Report) last released its quarterly earnings results on Tuesday, August 11th. The real estate investment trust reported ($2.62) EPS for the quarter. The firm had revenue of $44.38 million for the quarter. Apollo Commercial Real Estate Finance had a net margin of 55.49% and a return on equity of 7.39%. On average, analysts forecast that Apollo Commercial Real Estate Finance will post -0.18 earnings per share for the current year.

Apollo Commercial Real Estate Finance Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, July 15th. Investors of record on Tuesday, June 30th were issued a $3.75 dividend. This is a positive change from Apollo Commercial Real Estate Finance's previous quarterly dividend of $0.25. This represents a $15.00 annualized dividend and a yield of 239.5%. Apollo Commercial Real Estate Finance's payout ratio is 125.00%.

Institutional Trading of Apollo Commercial Real Estate Finance

Several institutional investors have recently added to or reduced their stakes in ARI. BlackRock Inc. purchased a new stake in Apollo Commercial Real Estate Finance during the 2nd quarter worth about $127,411,000. Empyrean Capital Partners LP purchased a new stake in shares of Apollo Commercial Real Estate Finance during the first quarter worth approximately $9,332,000. Greenland Capital Management LP purchased a new stake in shares of Apollo Commercial Real Estate Finance during the second quarter worth approximately $9,238,000. First Trust Advisors LP raised its holdings in Apollo Commercial Real Estate Finance by 23.0% in the first quarter. First Trust Advisors LP now owns 782,514 shares of the real estate investment trust's stock valued at $8,263,000 after acquiring an additional 146,131 shares in the last quarter. Finally, Bank of New York Mellon Corp acquired a new stake in Apollo Commercial Real Estate Finance in the second quarter valued at approximately $6,767,000. 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 (REIT) that originates, acquires and manages commercial real estate debt investments. The company primarily seeks income from loans and other financing arrangements secured by commercial properties.

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

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