UBS Group Lowers Ares Commercial Real Estate (NYSE:ACRE) Price Target to $4.50

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 objective trimmed by UBS Group from $5.00 to $4.50 in a research report released on Wednesday,Benzinga reports. The firm currently has a neutral rating on the real estate investment trust's stock.

A number of other brokerages have also commented on ACRE. JMP Securities reiterated a "market perform" rating on shares of Ares Commercial Real Estate in a report 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 report on Wednesday. Two analysts have rated the stock with a sell rating and four have issued a hold rating to the company's stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average price target of $5.31.

Ares Commercial Real Estate Trading Down 2.1%

ACRE traded down $0.10 on Wednesday, reaching $4.36. The stock had a trading volume of 508,427 shares, compared to its average volume of 460,786. Ares Commercial Real Estate has a fifty-two week low of $3.35 and a fifty-two week high of $7.83. The firm has a 50-day moving average of $4.71 and a 200-day moving average of $4.69. The company has a market capitalization of $239.57 million, a price-to-earnings ratio of -12.81, a price-to-earnings-growth ratio of 1.74 and a beta of 1.33.

Ares Commercial Real Estate Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, October 15th. Shareholders of record on Tuesday, September 30th will be paid a dividend of $0.15 per share. The ex-dividend date of this dividend is Tuesday, September 30th. This represents a $0.60 annualized dividend and a yield of 13.8%. Ares Commercial Real Estate's payout ratio is -176.47%.

Institutional Investors Weigh In On Ares Commercial Real Estate

Several hedge funds have recently added to or reduced their stakes in the company. Millennium Management LLC lifted its stake in shares of Ares Commercial Real Estate by 505.7% in the 4th quarter. Millennium Management LLC now owns 316,969 shares of the real estate investment trust's stock valued at $1,867,000 after acquiring an additional 264,641 shares during the last quarter. Cura Wealth Advisors LLC grew its holdings in shares of Ares Commercial Real Estate by 32.1% during the 1st quarter. Cura Wealth Advisors LLC now owns 963,485 shares of the real estate investment trust's stock worth $4,461,000 after acquiring an additional 234,258 shares during the period. Delphi Financial Group Inc. purchased a new position in shares of Ares Commercial Real Estate during the 1st quarter worth approximately $995,000. Jane Street Group LLC grew its holdings in shares of Ares Commercial Real Estate by 267.2% during the 4th quarter. Jane Street Group LLC now owns 263,571 shares of the real estate investment trust's stock worth $1,552,000 after acquiring an additional 191,799 shares during the period. Finally, ExodusPoint Capital Management LP purchased a new stake in shares of Ares Commercial Real Estate in the 4th quarter worth approximately $891,000. Institutional investors 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.