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

Key Points

• Apollo Commercial Real Estate Finance shares hit a new 52-week low of $6.11, trading below both their 50-day and 200-day moving averages.
• Analysts have a consensus “Hold” rating with an average price target of $11.33, implying potential upside from the recent price near $6.24.
• The REIT reported a quarterly loss of $2.62 per share, while the article also cites a sharply increased annualized dividend of $15 per share and institutional ownership of 54.43%.

Shares of Apollo Commercial Real Estate Finance (NYSE:ARI - Get Free Report) reached a new 52-week low on Tuesday. The company traded as low as $6.11 and last traded at $6.2350, with a volume of 4119037 shares. The stock had previously closed at $6.20.

Analysts Set New Price Targets

A number of analysts have commented on the company. Zacks Research upgraded Apollo Commercial Real Estate Finance from a "strong sell" rating to a "hold" rating in a research report on Tuesday, September 15th. Wall Street Zen upgraded Apollo Commercial Real Estate Finance from a "sell" rating to a "hold" rating in a research report on Monday. BTIG Research downgraded shares of Apollo Commercial Real Estate Finance from a "buy" rating to a "neutral" rating in a research note on Thursday, June 25th. Finally, Weiss Ratings lowered shares of Apollo Commercial Real Estate Finance from a "hold (c)" rating to a "hold (c-)" rating in a report on Monday, August 31st. Two investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company's stock. According to MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus target price of $11.33.

Apollo Commercial Real Estate Finance Trading Up 0.6%

The stock has a market capitalization of $801.45 million, a P/E ratio of 7.79 and a beta of 1.40. The firm's fifty day moving average is $6.65 and its 200-day moving average is $9.10.

Apollo Commercial Real Estate Finance (NYSE:ARI - Get Free Report) last posted its quarterly earnings data on Tuesday, August 11th. The real estate investment trust reported ($2.62) earnings per share for the quarter. The firm had revenue of $44.38 million for the quarter. Apollo Commercial Real Estate Finance had a return on equity of 7.39% and a net margin of 55.49%. Equities research analysts expect that Apollo Commercial Real Estate Finance will post -0.18 EPS 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. Shareholders of record on Tuesday, June 30th were given a $3.75 dividend. This represents a $15.00 annualized dividend and a yield of 240.6%. This is a boost from Apollo Commercial Real Estate Finance's previous quarterly dividend of $0.25. Apollo Commercial Real Estate Finance's dividend payout ratio (DPR) is presently 125.00%.

Institutional Trading of Apollo Commercial Real Estate Finance

A number of hedge funds and other institutional investors have recently modified their holdings of ARI. BlackRock Inc. bought a new position in Apollo Commercial Real Estate Finance in the 2nd quarter valued at $127,411,000. Greenland Capital Management LP bought a new position in Apollo Commercial Real Estate Finance in the second quarter valued at about $9,238,000. Renaissance Technologies LLC bought a new position in Apollo Commercial Real Estate Finance in the first quarter valued at about $3,459,000. Readystate Asset Management LP acquired a new stake in Apollo Commercial Real Estate Finance in the first quarter worth about $4,760,000. Finally, NewGen Asset Management Ltd acquired a new stake in Apollo Commercial Real Estate Finance in the first quarter worth about $3,228,000. Institutional investors and hedge funds own 54.43% of the company's stock.

Apollo Commercial Real Estate Finance Company Profile

Apollo Commercial Real Estate Finance, Inc NYSE: ARI is a real estate investment trust (REIT) that originates, acquires, invests in and manages commercial real estate debt. The company primarily focuses on loans secured by institutional-quality properties and seeks to generate income from a diversified portfolio of commercial real estate investments.

Its investments may include senior mortgage loans, mezzanine loans, subordinated debt and other commercial real estate-related financing arrangements.

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