Arbor Realty Trust (NYSE:ABR) Shares Down 5.8% - Should You Sell?

Key Points

• Arbor Realty Trust shares fell 5.8% to $3.64, with trading volume 64% below its average. The stock remains below its 50-day and 200-day moving averages.
• Analyst sentiment is cautious: the consensus rating is “Reduce”, based on three Hold and three Sell ratings, with an average price target of $6.00.
• The REIT exceeded quarterly earnings and revenue expectations, but its 18.4% dividend yield is accompanied by an extremely high 971.43% payout ratio, raising questions about dividend sustainability.

Arbor Realty Trust (NYSE:ABR - Get Free Report)'s share price fell 5.8% during trading on Thursday. The company traded as low as $3.64 and last traded at $3.6350. 1,481,378 shares traded hands during trading, a decline of 64% from the average daily volume of 4,164,012 shares. The stock had previously closed at $3.86.

Analyst Upgrades and Downgrades

A number of analysts recently commented on the company. JPMorgan Chase & Co. raised Arbor Realty Trust from an "underweight" rating to a "neutral" rating and dropped their price target for the stock from $7.00 to $5.50 in a research note on Friday, July 17th. Keefe, Bruyette & Woods decreased their price objective on shares of Arbor Realty Trust from $5.50 to $5.00 and set an "underperform" rating for the company in a report on Monday, August 3rd. Citizens Jmp reaffirmed a "market perform" rating on shares of Arbor Realty Trust in a research report on Tuesday. Weiss Ratings cut shares of Arbor Realty Trust from a "sell (d+)" rating to a "sell (d)" rating in a research report on Thursday, July 30th. Finally, Piper Sandler cut their target price on shares of 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. Three analysts have rated the stock with a Hold rating and three have assigned a Sell rating to the stock. Based on data from MarketBeat.com, Arbor Realty Trust currently has a consensus rating of "Reduce" and an average target price of $6.00.

Arbor Realty Trust Stock Performance

The business has a fifty day simple moving average of $4.89 and a 200-day simple moving average of $5.84. The company has a quick ratio of 478.85, a current ratio of 478.85 and a debt-to-equity ratio of 2.33. The firm has a market cap of $689.34 million, a P/E ratio of 52.93 and a beta of 1.15.

Arbor Realty Trust (NYSE:ABR - Get Free Report) last announced 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 net margin of 6.24% and a return on equity of 7.38%. On average, sell-side analysts predict that Arbor Realty Trust will post 0.23 EPS for the current fiscal year.

Arbor Realty Trust Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, August 28th. Investors of record on Friday, August 14th were paid a dividend of $0.17 per share. The ex-dividend date of this dividend was Friday, August 14th. This represents a $0.68 annualized dividend and a yield of 18.4%. Arbor Realty Trust's payout ratio is presently 971.43%.

Insiders Place Their Bets

In other Arbor Realty Trust news, Director William Green acquired 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 completion of the acquisition, the director owned 231,369 shares in the company, 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 Securities & Exchange Commission, which can be accessed through this hyperlink. Company insiders own 4.20% of the company's stock.

Institutional Trading of Arbor Realty Trust

Hedge funds have recently made changes to their positions in the stock. Bessemer Group Inc. bought a new position in Arbor Realty Trust during the 1st quarter valued at approximately $29,000. Public Employees Retirement System of Ohio bought a new stake in Arbor Realty Trust in the second quarter worth $49,000. North Star Investment Management Corp. purchased a new stake in shares of Arbor Realty Trust in the first quarter worth $54,000. Gables Capital Management Inc. purchased a new stake in shares of Arbor Realty Trust in the second quarter worth $59,000. Finally, HighTower Advisors LLC bought a new position in shares of Arbor Realty Trust during the second quarter valued at $60,000. 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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