Ares Commercial Real Estate (NYSE:ACRE) Shares Pass Below 200 Day Moving Average – Time to Sell?

Ares Commercial Real Estate Corporation (NYSE:ACRE) passed below its 200-day moving average during trading on Tuesday . The stock has a 200-day moving average of $4.96 and traded as low as $4.43. Ares Commercial Real Estate shares last traded at $4.4340, with a volume of 335,920 shares traded.

Wall Street Analyst Weigh In

A number of equities research analysts have issued reports on the company. Keefe, Bruyette & Woods cut their target price on Ares Commercial Real Estate from $6.00 to $5.50 and set an “outperform” rating on the stock in a research note on Wednesday, May 13th. Zacks Research cut shares of Ares Commercial Real Estate from a “hold” rating to a “strong sell” rating in a report on Tuesday, May 26th. Wall Street Zen downgraded shares of Ares Commercial Real Estate from a “hold” rating to a “sell” rating in a research report on Saturday, May 30th. JPMorgan Chase & Co. reduced their target price on shares of Ares Commercial Real Estate from $6.00 to $5.50 and set a “neutral” rating for the company in a research note on Thursday, April 16th. Finally, UBS Group began coverage on shares of Ares Commercial Real Estate in a research report on Tuesday, June 2nd. They issued a “neutral” rating and a $5.50 target price for the company. One analyst has rated the stock with a Buy rating, three have assigned a Hold rating and three have given a Sell rating to the company’s stock. According to MarketBeat.com, Ares Commercial Real Estate has an average rating of “Reduce” and a consensus price target of $5.38.

Ares Commercial Real Estate Stock Up 1.0%

The firm has a market capitalization of $244.39 million, a P/E ratio of -12.24 and a beta of 1.15. The business’s 50 day moving average is $4.80 and its two-hundred day moving average is $4.95.

Ares Commercial Real Estate (NYSE:ACRE) last announced its earnings results on Thursday, May 7th. The real estate investment trust reported $0.06 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.08 by ($0.02). Ares Commercial Real Estate had a negative net margin of 37.21% and a negative return on equity of 2.80%. The company had revenue of $13.46 million during the quarter, compared to the consensus estimate of $11.63 million. As a group, equities analysts anticipate that Ares Commercial Real Estate Corporation will post 0.4 earnings per share for the current fiscal year.

Ares Commercial Real Estate Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, July 15th. Stockholders of record on Tuesday, June 30th will be issued a $0.15 dividend. The ex-dividend date is Tuesday, June 30th. This represents a $0.60 annualized dividend and a dividend yield of 13.6%. Ares Commercial Real Estate’s dividend payout ratio (DPR) is -166.67%.

Institutional Investors Weigh In On Ares Commercial Real Estate

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Alpine Global Management LLC acquired a new position in shares of Ares Commercial Real Estate during the 3rd quarter valued at $2,679,000. Optiver Holding B.V. raised its stake in shares of Ares Commercial Real Estate by 603.3% in the 1st quarter. Optiver Holding B.V. now owns 6,513 shares of the real estate investment trust’s stock worth $31,000 after buying an additional 5,587 shares in the last quarter. Access Investment Management LLC lifted its holdings in shares of Ares Commercial Real Estate by 31.5% in the first quarter. Access Investment Management LLC now owns 112,700 shares of the real estate investment trust’s stock valued at $541,000 after buying an additional 27,000 shares during the period. State of Wyoming acquired a new stake in shares of Ares Commercial Real Estate in the first quarter valued at $199,000. Finally, Castleview Partners LLC bought a new position in Ares Commercial Real Estate during the first quarter valued at about $119,000. Institutional investors own 41.34% of the company’s stock.

Ares Commercial Real Estate Company Profile

Ares Commercial Real Estate Corporation (NYSE: ACRE) is a publicly traded real estate investment trust (REIT) primarily focused on commercial real estate debt investments. Externally managed by an affiliate of Ares Management Corporation, ACRE seeks to generate attractive risk-adjusted returns through its diversified portfolio of CRE financing strategies. The company specializes in originating, acquiring, financing and managing first mortgages, mezzanine loans, preferred equity and other structured finance products.

Since its inception, Ares Commercial Real Estate has targeted a broad range of property types, including multifamily, office, industrial, retail and hospitality assets.