UBS Group Issues Pessimistic Forecast for Ares Commercial Real Estate (NYSE:ACRE) Stock Price

Key Points

• UBS Group has lowered its target price for Ares Commercial Real Estate (NYSE: ACRE) shares from $5.00 to $4.50, maintaining a "neutral" rating, which suggests a potential upside of 7.78% from the current price.
• Other analysts have also expressed caution, with Keefe, Bruyette & Woods reducing their target to $4.25 and JMP Securities maintaining a "market perform" rating, leading to an average rating of "Hold" with a target price of $5.31.
• Significant institutional activity includes increases in stakes from firms like JPMorgan Chase & Co. and Raymond James Financial, with hedge funds currently holding 41.34% of ACRE stock.

Ares Commercial Real Estate (NYSE:ACRE - Free Report) had its price target trimmed by UBS Group from $5.00 to $4.50 in a research note issued to investors on Wednesday,Benzinga reports. The brokerage currently has a neutral rating on the real estate investment trust's stock.

Several other research analysts also recently commented on the company. JMP Securities reiterated a "market perform" rating on shares of Ares Commercial Real Estate in a research note on Monday, April 21st. Keefe, Bruyette & Woods dropped their price target on Ares Commercial Real Estate from $4.80 to $4.25 and set a "market perform" rating on the stock in a research note on Wednesday. One research analyst has rated the stock with a sell rating and five have assigned a hold rating to the company. According to data from MarketBeat, Ares Commercial Real Estate currently has an average rating of "Hold" and an average target price of $5.31.

Ares Commercial Real Estate Stock Performance

NYSE:ACRE traded down $0.01 during mid-day trading on Wednesday, hitting $4.45. The stock had a trading volume of 96,467 shares, compared to its average volume of 564,310. The company's 50 day simple moving average is $4.71 and its 200 day simple moving average is $4.71. The stock has a market cap of $244.50 million, a price-to-earnings ratio of -13.07, a PEG ratio of 1.67 and a beta of 1.33. Ares Commercial Real Estate has a twelve month low of $3.35 and a twelve month high of $7.83.

Ares Commercial Real Estate Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, October 15th. Stockholders of record on Tuesday, September 30th will be issued a dividend of $0.15 per share. This represents a $0.60 dividend on an annualized basis and a dividend yield of 13.5%. The ex-dividend date is Tuesday, September 30th. Ares Commercial Real Estate's payout ratio is currently -176.47%.

Hedge Funds Weigh In On Ares Commercial Real Estate

Several institutional investors and hedge funds have recently made changes to their positions in ACRE. Wells Fargo & Company MN boosted its stake in Ares Commercial Real Estate by 3.9% in the 4th quarter. Wells Fargo & Company MN now owns 50,424 shares of the real estate investment trust's stock valued at $297,000 after purchasing an additional 1,905 shares during the period. Price T Rowe Associates Inc. MD lifted its holdings in shares of Ares Commercial Real Estate by 4.3% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 73,116 shares of the real estate investment trust's stock worth $431,000 after buying an additional 2,982 shares in the last quarter. MetLife Investment Management LLC boosted its position in shares of Ares Commercial Real Estate by 13.0% in the fourth quarter. MetLife Investment Management LLC now owns 27,859 shares of the real estate investment trust's stock valued at $164,000 after acquiring an additional 3,215 shares during the period. Victory Capital Management Inc. boosted its position in shares of Ares Commercial Real Estate by 2.7% in the first quarter. Victory Capital Management Inc. now owns 124,250 shares of the real estate investment trust's stock valued at $575,000 after acquiring an additional 3,250 shares during the period. Finally, CWM LLC grew its stake in shares of Ares Commercial Real Estate by 94.3% in the second quarter. CWM LLC now owns 6,997 shares of the real estate investment trust's stock valued at $33,000 after acquiring an additional 3,396 shares in the last quarter. Institutional investors and hedge funds own 41.34% of the company's stock.

About Ares Commercial Real Estate

Ares Commercial Real Estate Corporation, a specialty finance company, originates and invests in commercial real estate (CRE) loans and related investments in the United States. It provides a range of financing solutions for the owners, operators, and sponsors of CRE properties. The company originates senior mortgage loans, subordinate debt and preferred equity products, mezzanine loans, and other CRE investments, including commercial mortgage-backed securities.