Ares Commercial Real Estate (NYSE:ACRE) Downgraded by Wall Street Zen to Strong Sell

Key Points

• Wall Street Zen has downgraded Ares Commercial Real Estate (NYSE:ACRE) from a "hold" rating to a "strong sell" rating, reflecting concerns from investment analysts.
• Other analysts have also reduced target prices, with UBS dropping theirs from $5.00 to $4.50 and Keefe, Bruyette & Woods lowering theirs to $4.25.
• Ares Commercial Real Estate shares are currently trading at $4.36, with a 12-month low of $3.35 and high of $7.83, indicating a volatile performance in recent months.

Wall Street Zen downgraded shares of Ares Commercial Real Estate (NYSE:ACRE - Free Report) from a hold rating to a strong sell rating in a research report report published on Saturday.

Other equities research analysts have also recently issued research reports about the company. JMP Securities restated a "market perform" rating on shares of Ares Commercial Real Estate in a report on Monday, April 21st. Keefe, Bruyette & Woods decreased their price objective 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, August 6th. Finally, UBS Group dropped their target price on Ares Commercial Real Estate from $5.00 to $4.50 and set a "neutral" rating for the company in a report on Wednesday, August 6th. Two investment analysts have rated the stock with a sell rating and four have given a hold rating to the company's stock. According to data from MarketBeat, the stock has a consensus rating of "Hold" and an average target price of $5.31.

Ares Commercial Real Estate Stock Up 2.8%

Shares of NYSE ACRE traded up $0.13 during mid-day trading on Friday, reaching $4.53. 91,319 shares of the company were exchanged, compared to its average volume of 564,938. The company's 50-day simple moving average is $4.70 and its 200-day simple moving average is $4.68. The stock has a market capitalization of $248.92 million, a P/E ratio of -13.28, a P/E/G 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 Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, October 15th. Investors of record on Tuesday, September 30th will be given a $0.15 dividend. The ex-dividend date is Tuesday, September 30th. This represents a $0.60 dividend on an annualized basis and a dividend yield of 13.3%. Ares Commercial Real Estate's dividend payout ratio (DPR) is presently -176.47%.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. Arlington Trust Co LLC bought a new position in Ares Commercial Real Estate in the first quarter valued at approximately $28,000. CWM LLC boosted its holdings in shares of Ares Commercial Real Estate by 94.3% in the 2nd quarter. CWM LLC now owns 6,997 shares of the real estate investment trust's stock valued at $33,000 after purchasing an additional 3,396 shares in the last quarter. Strs Ohio bought a new position in shares of Ares Commercial Real Estate in the 1st quarter valued at $47,000. McIlrath & Eck LLC acquired a new position in shares of Ares Commercial Real Estate during the 4th quarter worth $54,000. Finally, ProShare Advisors LLC raised its holdings in shares of Ares Commercial Real Estate by 49.0% during the 4th quarter. ProShare Advisors LLC now owns 15,045 shares of the real estate investment trust's stock worth $89,000 after buying an additional 4,950 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.