Ares Commercial Real Estate (NYSE:ACRE) Stock Crosses Below 200 Day Moving Average – What’s Next?

Ares Commercial Real Estate Corporation (NYSE:ACRE)’s share price crossed 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 analysts have commented on the stock. Zacks Research lowered shares of Ares Commercial Real Estate from a “hold” rating to a “strong sell” rating in a research report on Tuesday, May 26th. UBS Group initiated coverage on shares of Ares Commercial Real Estate in a research report on Tuesday, June 2nd. They set a “neutral” rating and a $5.50 target price on the stock. JPMorgan Chase & Co. decreased their price target on Ares Commercial Real Estate from $6.00 to $5.50 and set a “neutral” rating on the stock in a report on Thursday, April 16th. Weiss Ratings reiterated a “sell (d)” rating on shares of Ares Commercial Real Estate in a research report on Monday, May 11th. Finally, Wall Street Zen cut shares of Ares Commercial Real Estate from a “hold” rating to a “sell” rating in a report on Saturday, May 30th. One investment analyst has rated the stock with a Buy rating, two have given a Hold rating and three have issued a Sell rating to the company. According to data from MarketBeat, Ares Commercial Real Estate presently has an average rating of “Reduce” and a consensus price target of $5.38.

Ares Commercial Real Estate Price Performance

The firm has a 50-day moving average price of $4.82 and a 200 day moving average price of $4.96. The company has a market cap of $246.00 million, a price-to-earnings ratio of -12.32 and a beta of 1.15.

Ares Commercial Real Estate (NYSE:ACRE) last issued its quarterly 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). The company had revenue of $13.46 million for the quarter, compared to analyst estimates of $11.63 million. Ares Commercial Real Estate had a negative return on equity of 2.80% and a negative net margin of 37.21%. On average, equities analysts anticipate that Ares Commercial Real Estate Corporation will post 0.4 EPS for the current fiscal year.

Ares Commercial Real Estate Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Wednesday, July 15th. Investors 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 yield of 13.5%. Ares Commercial Real Estate’s dividend payout ratio is presently -166.67%.

Institutional Investors Weigh In On Ares Commercial Real Estate

A number of hedge funds have recently added to or reduced their stakes in ACRE. Russell Investments Group Ltd. boosted its holdings in Ares Commercial Real Estate by 456.0% during the third quarter. Russell Investments Group Ltd. now owns 6,033 shares of the real estate investment trust’s stock worth $27,000 after purchasing an additional 4,948 shares during the last quarter. Optiver Holding B.V. boosted its holdings in 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 during the period. Triumph Capital Management purchased a new stake in Ares Commercial Real Estate during the 3rd quarter worth about $38,000. BNP Paribas Financial Markets lifted its holdings in shares of Ares Commercial Real Estate by 100.3% in the third quarter. BNP Paribas Financial Markets now owns 10,367 shares of the real estate investment trust’s stock worth $47,000 after buying an additional 5,192 shares in the last quarter. Finally, Strs Ohio bought a new stake in Ares Commercial Real Estate during the first quarter valued at $47,000. Institutional investors and hedge funds own 41.34% of the company’s stock.

About Ares Commercial Real Estate

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.