Ares Commercial Real Estate Co. (NYSE: ACRE) Receives Consensus Rating of 'Reduce'

Ares Commercial Real Estate Co. (NYSE: ACRE) has been given a consensus rating of "Reduce" based on recent evaluations by six research firms that cover the stock, according to Marketbeat Ratings. Among these analysts, one has assigned a sell rating, while five have designated the stock with a hold rating. The average target price set by analysts over the past year is $5.81.

Several equity research analysts have recently commented on Ares Commercial Real Estate. JMP Securities confirmed a "market perform" rating for the company's shares in a report published on February 13th. Additionally, UBS Group adjusted its price target from $6.00 to $5.25 while maintaining a "neutral" rating in a report on February 25th. Similarly, JPMorgan Chase & Co. reduced their price objective from $6.00 to $5.50, also rating the stock as "neutral" in a note issued on February 13th. On December 17th, StockNews.com upgraded the stock from a "sell" to a "hold" rating. Lastly, on February 13th, Keefe, Bruyette & Woods lowered their price target for the stock from $6.00 to $5.50 but maintained a "market perform" rating.

Recent Insider Transactions

In other news, Vice President Anton Feingold sold 7,615 shares of Ares Commercial Real Estate on January 31st. The shares were sold at an average price of $5.68, amounting to $43,253.20 in total. After this sale, the vice president holds 78,360 shares in the company, valued at about $445,084.80, marking an 8.86% decrease in ownership. This transaction has been disclosed in a filing with the SEC, which is available online. Currently, corporate insiders own 2.80% of the stock.

Institutional Investor Activity

There have been notable changes among institutional investors regarding their holdings in Ares Commercial Real Estate. Summit Securities Group LLC increased its ownership by 139.7% during the fourth quarter, now owning 6,700 shares valued at $39,000 after acquiring an additional 3,905 shares. FMR LLC also boosted its stake by 211.0% during Q3, now holding 7,741 shares worth $54,000 after buying an extra 5,252 shares. Other investors, such as McIlrath & Eck LLC and Brown Brothers Harriman & Co., acquired new stakes during the fourth quarter, adding $54,000 and $69,000 worth of shares, respectively. Meanwhile, New York State Common Retirement Fund raised its position by 160.9% in Q4, now owning 11,838 shares valued at $70,000. Overall, institutional investors and hedge funds hold 41.34% of Ares Commercial Real Estate's stock.

Stock Performance Overview

As of Wednesday, shares of Ares Commercial Real Estate traded at $4.77. The company shows a quick ratio of 0.87, a current ratio of 0.87, and a debt-to-equity ratio of 2.17. Over the last fifty-two weeks, the stock has reached a low of $4.61 and a high of $7.99. The fifty-day simple moving average stands at $5.26, while the 200-day moving average is $6.22. Ares Commercial Real Estate has a market capitalization of $261.67 million and a PE ratio of -7.34, with a beta of 1.57.

Dividend Announcement

The company recently declared a quarterly dividend of $0.15 per share, to be paid on April 15th. Shareholders recorded by March 31st will receive this dividend, with the ex-dividend date also set for March 31st. This results in an annualized dividend of $0.60, translating to a yield of 12.58%. However, Ares Commercial Real Estate's dividend payout ratio (DPR) is -92.31%, indicating a need for caution.

About Ares Commercial Real Estate

Ares Commercial Real Estate Corporation is a finance company specializing in the origination and investment of commercial real estate (CRE) loans and related financial products in the United States. The company offers various financing solutions for the owners and operators of CRE properties, including senior mortgage loans, subordinate debt, preferred equity products, and mezzanine loans, as well as investments in commercial mortgage-backed securities.

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