Arbor Realty Trust (NYSE:ABR) Sets New 1-Year Low on Analyst Downgrade

Key Points

• Arbor Realty Trust shares fell to a new 52-week low of $2.78 after Keefe, Bruyette & Woods cut its price target from $5.00 to $3.00 and maintained an “underperform” rating.
• Analyst sentiment remains weak, with a consensus “Reduce” rating, three Hold ratings, three Sell ratings, and an average price target of $5.12. Piper Sandler and JPMorgan also recently lowered their targets.
• Despite the pressure, director William Green increased his holdings by 12.63% through a purchase of 25,951 shares, while the company continues to pay a quarterly dividend of $0.17, representing an annualized yield of about 24.2%.

Arbor Realty Trust (NYSE:ABR - Get Free Report) shares hit a new 52-week low during trading on Monday after Keefe, Bruyette & Woods lowered their price target on the stock from $5.00 to $3.00. Keefe, Bruyette & Woods currently has an underperform rating on the stock. Arbor Realty Trust traded as low as $2.78 and last traded at $2.7950, with a volume of 390,563 shares. The stock had previously closed at $2.87.

A number of other analysts also recently issued reports on the stock. Citizens Jmp reiterated a "market perform" rating on shares of Arbor Realty Trust in a report on Tuesday, September 29th. Zacks Research raised shares of Arbor Realty Trust from a "strong sell" rating to a "hold" rating in a research note on Monday, August 31st. JPMorgan Chase & Co. raised Arbor Realty Trust from an "underweight" rating to a "neutral" rating and reduced their price objective for the stock from $7.00 to $5.50 in a research note on Friday, July 17th. Weiss Ratings lowered Arbor Realty Trust from a "sell (d+)" rating to a "sell (d)" rating in a research note on Thursday, July 30th. Finally, Piper Sandler cut their target price on Arbor Realty Trust from $5.00 to $3.50 and set an "underweight" rating on the stock in a research note on Friday. Three equities research analysts have rated the stock with a Hold rating and three have assigned a Sell rating to the stock. Based on data from MarketBeat, Arbor Realty Trust presently has a consensus rating of "Reduce" and an average price target of $5.12.

Insiders Place Their Bets

In related news, Director William Green purchased 25,951 shares of the business's stock in a transaction on Monday, August 31st. The shares were acquired at an average price of $5.07 per share, for a total transaction of $131,571.57. Following the purchase, the director owned 231,369 shares of the company's stock, valued at $1,173,040.83. This trade represents a 12.63% increase in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Corporate insiders own 4.20% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the company. BlackRock Inc. acquired a new stake in Arbor Realty Trust during the second quarter worth about $143,448,000. Bank of New York Mellon Corp acquired a new position in Arbor Realty Trust in the second quarter valued at approximately $7,702,000. Miller Value Partners LLC purchased a new stake in Arbor Realty Trust in the 2nd quarter worth approximately $3,312,000. Legal & General Group Plc acquired a new stake in shares of Arbor Realty Trust during the 2nd quarter worth approximately $2,326,000. Finally, Odyssean LLC lifted its stake 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 purchasing an additional 396,292 shares during the period. 57.25% of the stock is owned by institutional investors and hedge funds.

Arbor Realty Trust Price Performance

The stock has a market capitalization of $525.16 million, a PE ratio of 40.21 and a beta of 1.22. The company has a debt-to-equity ratio of 2.33, a current ratio of 478.85 and a quick ratio of 478.85. The stock's fifty day moving average is $4.65 and its 200-day moving average is $5.63.

Arbor Realty Trust (NYSE:ABR - Get Free Report) last posted its earnings results on Friday, July 31st. The real estate investment trust reported $0.10 EPS for the quarter, beating analysts' consensus estimates of $0.05 by $0.05. The firm had revenue of $117.83 million for the quarter, compared to analysts' expectations of $107.75 million. Arbor Realty Trust had a return on equity of 7.38% and a net margin of 6.24%. As a group, equities analysts predict that Arbor Realty Trust will post 0.23 earnings per share for the current fiscal year.

Arbor Realty Trust Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, August 28th. Investors of record on Friday, August 14th were given a dividend of $0.17 per share. The ex-dividend date was Friday, August 14th. This represents a $0.68 dividend on an annualized basis and a yield of 24.2%. Arbor Realty Trust's payout ratio is presently 971.43%.

About Arbor Realty Trust

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.

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