Arbor Realty Trust (NYSE:ABR) Stock Price Down 7.2% - Here's What Happened

Key Points

• Arbor Realty Trust shares fell 7.2% to about $3.24, with trading volume 15% above average.
• Analyst sentiment remains cautious: the stock has a consensus “Reduce” rating, with three Holds and three Sells and an average price target of $6.00.
• The company beat quarterly earnings and revenue estimates, but its $0.17 quarterly dividend—yielding about 21%—is paired with an unusually high 971.43% payout ratio.

Shares of Arbor Realty Trust (NYSE:ABR - Get Free Report) dropped 7.2% during mid-day trading on Wednesday. The company traded as low as $3.24 and last traded at $3.2370. 4,854,685 shares were traded during trading, an increase of 15% from the average session volume of 4,236,304 shares. The stock had previously closed at $3.49.

Wall Street Analysts Forecast Growth

A number of research firms recently weighed in on ABR. Zacks Research raised shares of Arbor Realty Trust from a "strong sell" rating to a "hold" rating in a report on Monday, August 31st. Keefe, Bruyette & Woods cut their price objective on Arbor Realty Trust from $5.50 to $5.00 and set an "underperform" rating for the company in a report on Monday, August 3rd. JPMorgan Chase & Co. upgraded shares of Arbor Realty Trust from an "underweight" rating to a "neutral" rating and lowered their price objective for the company from $7.00 to $5.50 in a research report on Friday, July 17th. Piper Sandler lowered their price target on Arbor Realty Trust from $5.50 to $5.00 and set an "underweight" rating on the stock in a research report on Monday, August 3rd. Finally, Citizens Jmp reiterated a "market perform" rating on shares of Arbor Realty Trust in a research report on Tuesday, September 29th. Three analysts have rated the stock with a Hold rating and three have issued a Sell rating to the company. According to MarketBeat, the stock has a consensus rating of "Reduce" and an average price target of $6.00.

Arbor Realty Trust Stock Performance

The business has a fifty day moving average of $4.77 and a 200 day moving average of $5.73. The company has a market cap of $603.89 million, a P/E ratio of 46.31 and a beta of 1.22. 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 issued its quarterly earnings data on Friday, July 31st. The real estate investment trust reported $0.10 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.05 by $0.05. Arbor Realty Trust had a net margin of 6.24% and a return on equity of 7.38%. The business had revenue of $117.83 million for the quarter, compared to the consensus estimate of $107.75 million. On average, equities analysts predict that Arbor Realty Trust will post 0.23 EPS for the current year.

Arbor Realty Trust Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, August 28th. Investors of record on Friday, August 14th were paid a $0.17 dividend. This represents a $0.68 dividend on an annualized basis and a yield of 21.0%. The ex-dividend date of this dividend 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 purchased 25,951 shares of Arbor Realty Trust stock in a transaction that occurred on Monday, August 31st. The shares were bought at an average cost of $5.07 per share, with a total value of $131,571.57. Following the completion of the purchase, the director directly owned 231,369 shares in the company, valued at approximately $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 can be accessed through this hyperlink. 4.20% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the business. Amundi increased its stake 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 valued at $178,000 after purchasing an additional 22,748 shares in the last quarter. HighTower Advisors LLC purchased a new stake in shares of Arbor Realty Trust in the 2nd quarter worth approximately $60,000. Two Sigma Securities LLC bought a new position in Arbor Realty Trust during the 2nd quarter valued at approximately $138,000. Beacon Pointe Advisors LLC purchased a new position in Arbor Realty Trust during the second quarter valued at $280,000. Finally, Strait & Sound Wealth Management LLC bought a new stake in Arbor Realty Trust in the second quarter worth $71,000. 57.25% of the stock is owned by hedge funds and other institutional investors.

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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