Wall Street Zen Downgrades Ares Commercial Real Estate (NYSE:ACRE) 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.

Ares Commercial Real Estate (NYSE:ACRE - Get Free Report) was downgraded by investment analysts at Wall Street Zen from a "hold" rating to a "strong sell" rating in a note issued to investors on Saturday.

A number of other analysts also recently weighed in on ACRE. JMP Securities reaffirmed a "market perform" rating on shares of Ares Commercial Real Estate in a research report on Monday, April 21st. UBS Group reduced their target price on shares of Ares Commercial Real Estate from $5.00 to $4.50 and set a "neutral" rating on the stock in a research report on Wednesday. Finally, Keefe, Bruyette & Woods reduced their target price on shares of Ares Commercial Real Estate from $4.80 to $4.25 and set a "market perform" rating on the stock in a research report on Wednesday. Two investment analysts have rated the stock with a sell rating and four have issued a hold rating to the company. Based on data from MarketBeat, the company currently has an average rating of "Hold" and a consensus price target of $5.31.

Ares Commercial Real Estate Trading Down 2.1%

Shares of Ares Commercial Real Estate stock opened at $4.36 on Friday. Ares Commercial Real Estate has a 12-month low of $3.35 and a 12-month high of $7.83. The company has a market cap of $239.57 million, a P/E ratio of -12.81, a PEG ratio of 1.79 and a beta of 1.33. The company's fifty day simple moving average is $4.71 and its two-hundred day simple moving average is $4.70.

Institutional Investors Weigh In On Ares Commercial Real Estate

Institutional investors have recently added to or reduced their stakes in the stock. Arlington Trust Co LLC purchased a new position in Ares Commercial Real Estate during the first quarter worth $28,000. CWM LLC lifted its position in shares of Ares Commercial Real Estate by 94.3% during the second quarter. CWM LLC now owns 6,997 shares of the real estate investment trust's stock worth $33,000 after purchasing an additional 3,396 shares during the last quarter. McIlrath & Eck LLC bought a new stake in shares of Ares Commercial Real Estate during the fourth quarter worth $54,000. Strs Ohio bought a new stake in shares of Ares Commercial Real Estate during the first quarter worth $47,000. Finally, ProShare Advisors LLC lifted its position in shares of Ares Commercial Real Estate by 49.0% during the fourth quarter. ProShare Advisors LLC now owns 15,045 shares of the real estate investment trust's stock worth $89,000 after purchasing an additional 4,950 shares during the last quarter. 41.34% of the stock is owned by hedge funds and other institutional investors.

Ares Commercial Real Estate Company Profile

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.

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