Arbor Realty Trust (NYSE:ABR) Hits New 12-Month Low - Should You Sell?

Key Points

• Arbor Realty Trust shares fell to a new 52-week low of $4.01, well below their 50-day and 200-day moving averages. Analysts have a consensus “Reduce” rating, with an average price target of $6.00.
• The company exceeded quarterly expectations, reporting $0.10 in EPS versus estimates of $0.05 and revenue of $117.83 million against a $107.75 million consensus.
• Arbor declared a quarterly dividend of $0.17 per share, equivalent to a 17.3% annualized yield, but its payout ratio is an exceptionally high 971.43%, raising concerns about dividend sustainability.

Arbor Realty Trust (NYSE:ABR - Get Free Report)'s stock price reached a new 52-week low during mid-day trading on Monday. The stock traded as low as $4.01 and last traded at $4.01, with a volume of 22900 shares changing hands. The stock had previously closed at $4.03.

Analyst Upgrades and Downgrades

Several research analysts have recently commented on the company. Piper Sandler decreased their price objective on Arbor Realty Trust from $5.50 to $5.00 and set an "underweight" rating on the stock in a research note on Monday, August 3rd. Weiss Ratings downgraded Arbor Realty Trust from a "sell (d+)" rating to a "sell (d)" rating in a research note on Thursday, July 30th. JPMorgan Chase & Co. raised shares of Arbor Realty Trust from an "underweight" rating to a "neutral" rating and reduced their target price for the stock from $7.00 to $5.50 in a report on Friday, July 17th. Keefe, Bruyette & Woods decreased their target price on shares of Arbor Realty Trust from $5.50 to $5.00 and set an "underperform" rating on the stock in a research note on Monday, August 3rd. Finally, Zacks Research raised shares of Arbor Realty Trust from a "strong sell" rating to a "hold" rating in a report on Monday, August 31st. One research analyst has rated the stock with a Buy rating, two have assigned a Hold rating and three have issued a Sell rating to the company's stock. According to data from MarketBeat.com, the company currently has an average rating of "Reduce" and an average target price of $6.00.

Arbor Realty Trust Stock Performance

The company has a market capitalization of $734.11 million, a P/E ratio of 56.36 and a beta of 1.15. The business has a 50 day moving average of $4.95 and a 200 day moving average of $5.93. The company has a quick ratio of 478.85, a current ratio of 478.85 and a debt-to-equity ratio of 2.33.

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

Arbor Realty Trust Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Friday, August 28th. Investors of record on Friday, August 14th were issued a dividend of $0.17 per share. This represents a $0.68 annualized dividend and a yield of 17.3%. The ex-dividend date was Friday, August 14th. Arbor Realty Trust's dividend payout ratio is presently 971.43%.

Insider Buying and Selling at Arbor Realty Trust

In other news, Director William Green bought 25,951 shares of the stock in a transaction dated Monday, August 31st. The stock was purchased at an average price of $5.07 per share, for a total transaction of $131,571.57. Following the acquisition, the director owned 231,369 shares of the company's stock, valued at $1,173,040.83. The trade was a 12.63% increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Corporate insiders own 4.20% of the company's stock.

Institutional Investors Weigh In On Arbor Realty Trust

A number of institutional investors and hedge funds have recently modified their holdings of ABR. Amundi lifted its position in shares of Arbor Realty Trust by 225.7% during the second quarter. Amundi now owns 32,825 shares of the real estate investment trust's stock worth $178,000 after purchasing an additional 22,748 shares during the last quarter. HighTower Advisors LLC bought a new position in Arbor Realty Trust in the second quarter worth approximately $60,000. Two Sigma Securities LLC bought a new position in shares of Arbor Realty Trust in the 2nd quarter worth $138,000. Beacon Pointe Advisors LLC purchased a new stake in shares of Arbor Realty Trust during the 2nd quarter worth $280,000. Finally, Strait & Sound Wealth Management LLC purchased a new stake in shares of Arbor Realty Trust during the second quarter valued at about $71,000. 57.25% of the stock is owned by institutional investors.

About Arbor Realty Trust

Arbor Realty Trust, Inc is a real estate investment trust that specializes in financing and investing in commercial real estate. The company focuses primarily on the multifamily housing sector, providing capital to property owners, operators and developers through a range of lending and investment programs.

Its business activities include originating bridge and structured loans, acquiring or investing in mortgage-related assets, and providing mezzanine loans and preferred equity investments.

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