Ares Commercial Real Estate (ACRE) Lowered to Hold at Zacks Investment Research

Zacks Investment Research downgraded shares of Ares Commercial Real Estate (NYSE:ACRE) from a buy rating to a hold rating in a research report sent to investors on Tuesday 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. “

Other equities analysts have also issued research reports about the company. JMP Securities raised their price target on Ares Commercial Real Estate from $14.50 to $15.00 and gave the company a market outperform rating in a research note on Monday, July 30th. Raymond James assumed coverage on Ares Commercial Real Estate in a research note on Monday, July 23rd. They set an outperform rating on the stock. JPMorgan Chase & Co. lowered Ares Commercial Real Estate from an overweight rating to a neutral rating in a research note on Monday, July 23rd. BTIG Research assumed coverage on Ares Commercial Real Estate in a research note on Monday, October 8th. They set a buy rating and a $15.00 price target on the stock. Finally, Credit Suisse Group raised their price target on Ares Commercial Real Estate from $14.00 to $14.50 and gave the company a neutral rating in a research note on Tuesday, August 21st. One analyst has rated the stock with a sell rating, five have assigned a hold rating and four have issued a buy rating to the stock. The company has an average rating of Hold and a consensus target price of $14.75.

ACRE stock opened at $13.97 on Tuesday. Ares Commercial Real Estate has a twelve month low of $11.96 and a twelve month high of $14.77. The firm has a market capitalization of $407.52 million, a price-to-earnings ratio of 10.76 and a beta of 0.56.

Ares Commercial Real Estate (NYSE:ACRE) last released its earnings results on Thursday, July 26th. The real estate investment trust reported $0.35 earnings per share for the quarter, topping analysts’ consensus estimates of $0.32 by $0.03. Ares Commercial Real Estate had a return on equity of 8.85% and a net margin of 32.36%. The business had revenue of $29.60 million for the quarter, compared to analyst estimates of $27.30 million. As a group, sell-side analysts expect that Ares Commercial Real Estate will post 1.32 EPS for the current year.

The company also recently declared a quarterly dividend, which was paid on Tuesday, October 16th. Stockholders of record on Friday, September 28th were paid a dividend of $0.29 per share. The ex-dividend date of this dividend was Thursday, September 27th. This represents a $1.16 annualized dividend and a dividend yield of 8.30%. This is a positive change from Ares Commercial Real Estate’s previous quarterly dividend of $0.28. Ares Commercial Real Estate’s dividend payout ratio (DPR) is currently 104.50%.

A number of institutional investors and hedge funds have recently bought and sold shares of the business. First Trust Advisors LP grew its stake in Ares Commercial Real Estate by 18.3% in the second quarter. First Trust Advisors LP now owns 32,409 shares of the real estate investment trust’s stock valued at $448,000 after purchasing an additional 5,021 shares during the last quarter. Schwab Charles Investment Management Inc. grew its stake in Ares Commercial Real Estate by 11.8% in the first quarter. Schwab Charles Investment Management Inc. now owns 58,852 shares of the real estate investment trust’s stock valued at $727,000 after purchasing an additional 6,200 shares during the last quarter. Advisors Capital Management LLC grew its stake in Ares Commercial Real Estate by 2.6% in the third quarter. Advisors Capital Management LLC now owns 258,893 shares of the real estate investment trust’s stock valued at $3,617,000 after purchasing an additional 6,599 shares during the last quarter. Greenwich Investment Management Inc. grew its stake in Ares Commercial Real Estate by 10.7% in the second quarter. Greenwich Investment Management Inc. now owns 71,155 shares of the real estate investment trust’s stock valued at $983,000 after purchasing an additional 6,900 shares during the last quarter. Finally, SG Americas Securities LLC purchased a new position in Ares Commercial Real Estate in the second quarter valued at about $100,000. Institutional investors own 62.73% 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 loans and related investments in the United States. It provides a range of financing solutions for the owners, operators, and sponsors of commercial real estate (CRE) properties. The company originates senior mortgage loans, subordinate debt products, mezzanine loans, real estate preferred equity investments, and other CRE investments.

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