Ares Commercial Real Estate (NYSE:ACRE) Announces Earnings Results

Ares Commercial Real Estate (NYSE:ACRE) released its earnings results on Friday. The real estate investment trust reported $0.08 earnings per share for the quarter, topping the consensus estimate of ($0.09) by $0.17, Zacks reports. The business had revenue of $5.63 million during the quarter, compared to the consensus estimate of $11.35 million. Ares Commercial Real Estate had a negative return on equity of 5.44% and a negative net margin of 29.57%.

Ares Commercial Real Estate Trading Up 12.6%

Shares of ACRE traded up $0.57 during mid-day trading on Friday, hitting $5.06. The company’s stock had a trading volume of 1,353,517 shares, compared to its average volume of 518,873. The company’s 50-day moving average is $4.68 and its 200-day moving average is $4.62. Ares Commercial Real Estate has a 52-week low of $3.35 and a 52-week high of $7.49. The firm has a market capitalization of $278.05 million, a price-to-earnings ratio of -14.87 and a beta of 1.34.

Ares Commercial Real Estate Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, January 15th. Stockholders of record on Wednesday, December 31st will be given a $0.15 dividend. This represents a $0.60 annualized dividend and a dividend yield of 11.9%. The ex-dividend date of this dividend is Wednesday, December 31st. Ares Commercial Real Estate’s dividend payout ratio is presently -176.47%.

Analyst Ratings Changes

Several research firms recently commented on ACRE. Keefe, Bruyette & Woods raised their price target on shares of Ares Commercial Real Estate from $4.25 to $4.50 and gave the stock a “market perform” rating in a research note on Thursday, October 9th. Zacks Research upgraded shares of Ares Commercial Real Estate to a “hold” rating in a research note on Monday, August 11th. UBS Group decreased their price target on shares of Ares Commercial Real Estate from $5.00 to $4.50 and set a “neutral” rating for the company in a research note on Wednesday, August 6th. Weiss Ratings reiterated a “sell (d)” rating on shares of Ares Commercial Real Estate in a report on Wednesday, October 8th. Finally, Wall Street Zen cut Ares Commercial Real Estate from a “hold” rating to a “strong sell” rating in a research note on Saturday, August 9th. Five analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company presently has an average rating of “Reduce” and a consensus price target of $4.83.

Hedge Funds Weigh In On Ares Commercial Real Estate

A number of large investors have recently bought and sold shares of ACRE. Marshall Wace LLP purchased a new stake in Ares Commercial Real Estate during the second quarter worth $2,685,000. BI Asset Management Fondsmaeglerselskab A S raised its position in shares of Ares Commercial Real Estate by 8.0% in the 2nd quarter. BI Asset Management Fondsmaeglerselskab A S now owns 453,704 shares of the real estate investment trust’s stock worth $2,164,000 after acquiring an additional 33,764 shares in the last quarter. JPMorgan Chase & Co. lifted its stake in shares of Ares Commercial Real Estate by 4.0% during the 3rd quarter. JPMorgan Chase & Co. now owns 376,815 shares of the real estate investment trust’s stock worth $1,699,000 after purchasing an additional 14,586 shares during the last quarter. Ameriprise Financial Inc. boosted its position in Ares Commercial Real Estate by 2.8% during the second quarter. Ameriprise Financial Inc. now owns 226,143 shares of the real estate investment trust’s stock valued at $1,079,000 after purchasing an additional 6,100 shares in the last quarter. Finally, Bank of America Corp DE grew its stake in Ares Commercial Real Estate by 32.8% in the second quarter. Bank of America Corp DE now owns 118,702 shares of the real estate investment trust’s stock valued at $566,000 after purchasing an additional 29,333 shares during the last quarter. Institutional investors 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.