Zacks Investment Research downgraded shares of Ares Commercial Real Estate (NYSE:ACRE) from a buy rating to a hold rating in a report published on Thursday morning.
According to Zacks, “Ares Commercial Real Estate Corporation is a specialty finance company focused on originating, investing in and managing middle-market commercial real estate loans and other commercial real estate investments. The Company’s financing solutions are comprised of its target investments, which include the following: Transitional senior mortgage loans, Stretch senior mortgage loans, Subordinate debt mortgage loans and Other CRE debt and preferred equity investments. Ares Commercial Real Estate Corporation is based in Chicago, Illinois. “
Separately, B. Riley reissued a buy rating and set a $14.00 target price on shares of Ares Commercial Real Estate in a research report on Tuesday, January 9th. One analyst has rated the stock with a sell rating, three have issued a hold rating and three have issued a buy rating to the company’s stock. The company has a consensus rating of Hold and an average price target of $14.13.
Ares Commercial Real Estate (NYSE:ACRE) last posted its quarterly earnings results on Thursday, March 1st. The real estate investment trust reported $0.25 earnings per share for the quarter, beating the consensus estimate of $0.23 by $0.02. Ares Commercial Real Estate had a net margin of 31.17% and a return on equity of 7.54%. The firm had revenue of $25.22 million during the quarter, compared to the consensus estimate of $11.35 million. During the same period in the previous year, the firm posted $0.28 earnings per share. equities analysts predict that Ares Commercial Real Estate will post 1.24 EPS for the current fiscal year.
The firm also recently announced a quarterly dividend, which will be paid on Tuesday, April 17th. Stockholders of record on Thursday, March 29th will be given a dividend of $0.28 per share. The ex-dividend date is Wednesday, March 28th. This is an increase from Ares Commercial Real Estate’s previous quarterly dividend of $0.27. This represents a $1.12 annualized dividend and a dividend yield of 9.08%. Ares Commercial Real Estate’s payout ratio is presently 100.00%.
In other Ares Commercial Real Estate news, Director William Stephen Benjamin bought 12,715 shares of the firm’s stock in a transaction dated Wednesday, March 7th. The stock was bought at an average cost of $12.32 per share, with a total value of $156,648.80. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Insiders own 1.75% of the company’s stock.
A number of hedge funds have recently modified their holdings of the business. The Manufacturers Life Insurance Company grew its position in Ares Commercial Real Estate by 10.8% in the 2nd quarter. The Manufacturers Life Insurance Company now owns 25,473 shares of the real estate investment trust’s stock worth $333,000 after purchasing an additional 2,491 shares in the last quarter. Edge Wealth Management LLC boosted its stake in Ares Commercial Real Estate by 40.0% in the fourth quarter. Edge Wealth Management LLC now owns 14,000 shares of the real estate investment trust’s stock valued at $181,000 after acquiring an additional 4,000 shares during the last quarter. Wells Fargo & Company MN boosted its stake in Ares Commercial Real Estate by 1.5% in the fourth quarter. Wells Fargo & Company MN now owns 400,619 shares of the real estate investment trust’s stock valued at $5,168,000 after acquiring an additional 5,799 shares during the last quarter. SG Americas Securities LLC purchased a new position in Ares Commercial Real Estate in the third quarter valued at about $103,000. Finally, Atria Investments LLC purchased a new position in Ares Commercial Real Estate in the fourth quarter valued at about $132,000. 63.99% of the stock is owned by institutional investors and hedge funds.
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About Ares Commercial Real Estate
Ares Commercial Real Estate Corporation is a specialty finance company. The Company is primarily engaged in originating and investing in commercial real estate (CRE) loans and related investments. The Company operates through principal lending segment. Its target investments include senior mortgage loans, subordinated debt, preferred equity, mezzanine loans and other CRE investment opportunities, including commercial mortgage-backed securities.
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