Ares Commercial Real Estate (NYSE:ACRE) Posts Earnings Results, Beats Estimates By $0.08 EPS

Ares Commercial Real Estate (NYSE:ACRE) issued its quarterly earnings results on Monday. The real estate investment trust reported $0.12 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.04 by $0.08, FiscalAI reports. The firm had revenue of $14.36 million for the quarter, compared to analysts’ expectations of $10.96 million. Ares Commercial Real Estate had a negative return on equity of 2.80% and a negative net margin of 37.21%.

Ares Commercial Real Estate Trading Up 10.9%

NYSE:ACRE traded up $0.47 during trading hours on Tuesday, hitting $4.71. The stock had a trading volume of 416,456 shares, compared to its average volume of 470,736. The business has a 50 day simple moving average of $4.64 and a two-hundred day simple moving average of $4.90. The company has a market cap of $261.59 million, a PE ratio of -13.07 and a beta of 1.15. Ares Commercial Real Estate has a 1-year low of $4.05 and a 1-year high of $5.89.

Ares Commercial Real Estate Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, July 15th. Investors of record on Tuesday, June 30th were given a dividend of $0.15 per share. This represents a $0.60 dividend on an annualized basis and a yield of 12.7%. The ex-dividend date of this dividend was Tuesday, June 30th. Ares Commercial Real Estate’s dividend payout ratio is -166.67%.

Wall Street Analyst Weigh In

A number of equities analysts recently weighed in on the stock. Wall Street Zen lowered shares of Ares Commercial Real Estate from a “hold” rating to a “sell” rating in a research report on Sunday. Zacks Research raised Ares Commercial Real Estate from a “strong sell” rating to a “hold” rating in a report on Friday, July 10th. UBS Group began coverage on Ares Commercial Real Estate in a report on Tuesday, June 2nd. They set a “neutral” rating and a $5.50 price objective for the company. Citizens Jmp reissued a “market perform” rating on shares of Ares Commercial Real Estate in a report on Thursday, July 9th. Finally, Weiss Ratings reiterated a “sell (d)” rating on shares of Ares Commercial Real Estate in a report on Monday, May 11th. One analyst has rated the stock with a Buy rating, four have assigned a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat.com, the company presently has an average rating of “Reduce” and a consensus target price of $5.25.

Institutional Investors Weigh In On Ares Commercial Real Estate

A number of institutional investors have recently modified their holdings of the stock. AQR Capital Management LLC acquired a new stake in shares of Ares Commercial Real Estate during the 1st quarter worth approximately $129,000. Acadian Asset Management LLC bought a new stake in shares of Ares Commercial Real Estate during the first quarter valued at approximately $166,000. Strs Ohio bought a new position in Ares Commercial Real Estate in the 1st quarter worth approximately $47,000. Rhumbline Advisers increased its position in Ares Commercial Real Estate by 6.5% in the 2nd quarter. Rhumbline Advisers now owns 83,886 shares of the real estate investment trust’s stock valued at $400,000 after acquiring an additional 5,107 shares during the period. Finally, Prudential Financial Inc. acquired a new position in Ares Commercial Real Estate during the 2nd quarter worth $187,000. 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.