Ares Commercial Real Estate (NYSE:ACRE) Issues Quarterly Earnings Results, Beats Estimates By $0.17 EPS

Ares Commercial Real Estate (NYSE:ACRE) reported quarterly earnings of $0.08 per share, exceeding estimates by $0.17. The company had revenue of $5.63 million, below the expected $11.35 million, with a negative net margin of 29.57%. ACRE shares rose 12.6% to $5.06. A quarterly dividend of $0.15 per share was announced, payable on January 15. Analysts have mixed ratings, with a consensus rating of "Reduce" and an average price target of $4.83. Institutional investors hold 41.34% of the stock.

Ares Commercial Real Estate (NYSE:ACRE - Get Free Report) released its quarterly earnings results on Friday. The real estate investment trust reported $0.08 EPS for the quarter, beating analysts' consensus estimates of ($0.09) by $0.17, Zacks reports. The firm had revenue of $5.63 million for the quarter, compared to analyst estimates of $11.35 million. Ares Commercial Real Estate had a negative net margin of 29.57% and a negative return on equity of 5.44%.

Ares Commercial Real Estate Trading Up 12.6%

Shares of ACRE traded up $0.57 during trading hours on Friday, hitting $5.06. 1,353,517 shares of the stock traded hands, compared to its average volume of 518,873. The business has a fifty day moving average of $4.68 and a 200-day moving average of $4.62. The firm has a market capitalization of $278.05 million, a PE ratio of -14.87 and a beta of 1.34. Ares Commercial Real Estate has a 1-year low of $3.35 and a 1-year high of $7.49.

Ares Commercial Real Estate Dividend Announcement

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

Analyst Ratings Changes

A number of research analysts have recently issued reports on the stock. Zacks Research upgraded shares of Ares Commercial Real Estate to a "hold" rating in a research note on Monday, August 11th. Wall Street Zen cut Ares Commercial Real Estate from a "hold" rating to a "strong sell" rating in a report on Saturday, August 9th. Keefe, Bruyette & Woods boosted their price objective on 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. UBS Group decreased their target price on Ares Commercial Real Estate from $5.00 to $4.50 and set a "neutral" rating on the stock in a report on Wednesday, August 6th. Finally, Weiss Ratings reaffirmed a "sell (d)" rating on shares of Ares Commercial Real Estate in a report on Wednesday, October 8th. Five analysts have rated the stock with a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, Ares Commercial Real Estate presently has a consensus rating of "Reduce" and an average price target of $4.83.

Get Our Latest Stock Analysis on Ares Commercial Real Estate

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in ACRE. Rhumbline Advisers boosted its stake in shares of 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 purchasing an additional 5,107 shares during the last quarter. Ameriprise Financial Inc. lifted its holdings in Ares Commercial Real Estate by 2.8% in 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 buying an additional 6,100 shares during the period. Strs Ohio acquired a new position in Ares Commercial Real Estate in the first quarter valued at approximately $47,000. State of Wyoming bought a new position in Ares Commercial Real Estate in the second quarter valued at approximately $59,000. Finally, Corient Private Wealth LLC acquired a new stake in Ares Commercial Real Estate during the 2nd quarter worth $66,000. 41.34% of the stock is currently owned by institutional investors and hedge funds.

About Ares Commercial Real Estate

(Get Free Report)

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.

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