Arbor Realty Trust (NYSE:ABR) Sets New 1-Year Low - Should You Sell?

Key Points

• Arbor Realty Trust hit a new 52-week low of $4.65, with the stock trading below both its 50-day and 200-day moving averages.
• Analyst sentiment is cautious: the consensus rating is “Reduce”, with three Sell, two Hold, and one Buy rating and an average price target of $6.00.
• The company beat quarterly earnings and revenue estimates, but its $0.68 annualized dividend yields 14.6% and carries an exceptionally high 971.43% payout ratio, raising sustainability concerns.

Arbor Realty Trust (NYSE:ABR - Get Free Report)'s stock price hit a new 52-week low during mid-day trading on Tuesday . The company traded as low as $4.65 and last traded at $4.6560, with a volume of 3783943 shares. The stock had previously closed at $4.72.

Wall Street Analysts Forecast Growth

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

Arbor Realty Trust Trading Down 1.4%

The company has a debt-to-equity ratio of 2.33, a quick ratio of 478.85 and a current ratio of 478.85. The company has a market cap of $868.62 million, a P/E ratio of 66.51 and a beta of 1.15. The business has a fifty day simple moving average of $5.08 and a 200 day simple moving average of $6.17.

Arbor Realty Trust (NYSE:ABR - Get Free Report) last announced its quarterly earnings data on Friday, July 31st. The real estate investment trust reported $0.10 earnings per share (EPS) for the quarter, topping the consensus estimate 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%. Analysts anticipate that Arbor Realty Trust will post 0.29 earnings per share for the current fiscal year.

Arbor Realty Trust Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, August 28th. Shareholders of record on Friday, August 14th were issued a $0.17 dividend. The ex-dividend date of this dividend was Friday, August 14th. This represents a $0.68 dividend on an annualized basis and a yield of 14.6%. Arbor Realty Trust's dividend payout ratio (DPR) is currently 971.43%.

Insider Activity at Arbor Realty Trust

In related news, Director William Green purchased 25,951 shares of the company's stock in a transaction dated Monday, August 31st. The shares were acquired at an average cost of $5.07 per share, for a total transaction of $131,571.57. Following the transaction, 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 ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Company insiders own 4.20% of the company's stock.

Institutional Trading of Arbor Realty Trust

Large investors have recently modified their holdings of the company. BlackRock Inc. acquired a new position in shares of Arbor Realty Trust in the 2nd quarter worth approximately $143,448,000. UBS Group AG raised its stake in Arbor Realty Trust by 111.4% during the 4th quarter. UBS Group AG now owns 1,045,564 shares of the real estate investment trust's stock valued at $8,114,000 after purchasing an additional 550,875 shares during the period. Bank of New York Mellon Corp acquired a new stake in Arbor Realty Trust during the 2nd quarter valued at $7,702,000. Melia Wealth LLC lifted its holdings in shares of Arbor Realty Trust by 0.9% in the fourth quarter. Melia Wealth LLC now owns 978,802 shares of the real estate investment trust's stock valued at $7,596,000 after purchasing an additional 8,867 shares in the last quarter. Finally, Principal Financial Group Inc. boosted its position in shares of Arbor Realty Trust by 2.0% in the first quarter. Principal Financial Group Inc. now owns 951,200 shares of the real estate investment trust's stock worth $7,334,000 after buying an additional 18,529 shares during the period. Institutional investors and hedge funds own 57.25% of the company's stock.

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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