Short Interest in Chicago Atlantic Real Estate Finance, Inc. (NASDAQ:REFI) Expands By 93.3%

Key Points

• Short interest surged 93.3% to 1,169,415 shares as of March 31, representing about 6.0% of the company's shares and a days-to-cover ratio of 4.4.
• The company declared a quarterly dividend of $0.47 (annualized $1.88), implying a 16.3% yield but a payout ratio of 111.9%, which raises questions about sustainability.
• Chicago Atlantic posted a slight quarterly earnings beat ($0.43 vs. $0.42 expected), has a market cap of $242.6M and a P/E of 6.85, while analysts hold a consensus "Moderate Buy" with a $14 price target.

Chicago Atlantic Real Estate Finance, Inc. (NASDAQ:REFI - Get Free Report) was the target of a large growth in short interest during the month of March. As of March 31st, there was short interest totaling 1,169,415 shares, a growth of 93.3% from the March 15th total of 605,053 shares. Based on an average trading volume of 268,231 shares, the days-to-cover ratio is presently 4.4 days. Approximately 6.0% of the company's shares are sold short.

Chicago Atlantic Real Estate Finance Stock Performance

Shares of REFI opened at $11.51 on Monday. Chicago Atlantic Real Estate Finance has a twelve month low of $10.74 and a twelve month high of $15.20. The firm's 50 day moving average price is $11.95 and its two-hundred day moving average price is $12.43. The firm has a market cap of $242.63 million, a P/E ratio of 6.85 and a beta of 0.23.

Chicago Atlantic Real Estate Finance (NASDAQ:REFI - Get Free Report) last announced its quarterly earnings results on Thursday, March 12th. The company reported $0.43 earnings per share for the quarter, beating analysts' consensus estimates of $0.42 by $0.01. Chicago Atlantic Real Estate Finance had a net margin of 65.01% and a return on equity of 11.94%. The firm had revenue of $14.24 million for the quarter, compared to analyst estimates of $14.20 million. On average, sell-side analysts anticipate that Chicago Atlantic Real Estate Finance will post 1.9 earnings per share for the current fiscal year.

Chicago Atlantic Real Estate Finance Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, April 15th. Shareholders of record on Tuesday, March 31st will be paid a $0.47 dividend. The ex-dividend date of this dividend is Tuesday, March 31st. This represents a $1.88 dividend on an annualized basis and a yield of 16.3%. Chicago Atlantic Real Estate Finance's payout ratio is presently 111.90%.

Analyst Ratings Changes

Several research firms recently weighed in on REFI. Zacks Research raised shares of Chicago Atlantic Real Estate Finance from a "hold" rating to a "strong-buy" rating in a research note on Thursday, March 19th. Oppenheimer lowered shares of Chicago Atlantic Real Estate Finance from an "outperform" rating to a "market perform" rating in a research note on Monday, March 16th. One research analyst has rated the stock with a Strong Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $14.00.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the stock. Clayton Partners LLC acquired a new stake in shares of Chicago Atlantic Real Estate Finance in the third quarter valued at approximately $1,765,000. Jane Street Group LLC acquired a new stake in shares of Chicago Atlantic Real Estate Finance in the fourth quarter valued at approximately $747,000. Fielder Capital Group LLC raised its holdings in shares of Chicago Atlantic Real Estate Finance by 4.9% in the third quarter. Fielder Capital Group LLC now owns 809,425 shares of the company's stock valued at $10,353,000 after purchasing an additional 37,922 shares during the last quarter. Rothschild Wealth LLC acquired a new stake in shares of Chicago Atlantic Real Estate Finance in the fourth quarter valued at approximately $447,000. Finally, Millennium Management LLC raised its holdings in shares of Chicago Atlantic Real Estate Finance by 16.9% in the third quarter. Millennium Management LLC now owns 184,697 shares of the company's stock valued at $2,362,000 after purchasing an additional 26,751 shares during the last quarter. Institutional investors own 25.48% of the company's stock.

About Chicago Atlantic Real Estate Finance

Chicago Atlantic Real Estate Finance, Inc NASDAQ: REFI is a publicly listed real estate finance company that specializes in originating and acquiring commercial real estate debt. Pursuant to its election to be treated as a real estate investment trust (REIT), REFI’s investment strategy focuses on floating-rate senior mortgage loans secured by income-producing properties across the United States. The company targets stabilized, performing assets in sectors such as multifamily, office, retail and industrial, aiming to generate attractive risk-adjusted returns through current income.

Established in 2015 and headquartered in Chicago, Illinois, REFI completed its initial public offering in 2019.

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