Ares Commercial Real Estate Co. (NYSE:ACRE) Receives Average Recommendation of "Reduce" from Analysts

Ares Commercial Real Estate Co. (NYSE:ACRE - Get Free Report) has been given an average rating of "Reduce" by the six research firms that are currently covering the stock, MarketBeat reports. One investment analyst has rated the stock with a sell recommendation and five have issued a hold recommendation on the company. The average twelve-month price objective among brokerages that have covered the stock in the last year is $5.81.

A number of brokerages have weighed in on ACRE. UBS Group lowered their price objective on Ares Commercial Real Estate from $6.00 to $5.25 and set a "neutral" rating on the stock in a report on Tuesday, February 25th. JMP Securities reaffirmed a "market perform" rating on shares of Ares Commercial Real Estate in a report on Thursday, February 13th. JPMorgan Chase & Co. reduced their target price on Ares Commercial Real Estate from $6.00 to $5.50 and set a "neutral" rating for the company in a report on Thursday, February 13th. StockNews.com raised shares of Ares Commercial Real Estate from a "sell" rating to a "hold" rating in a research note on Tuesday, December 17th. Finally, Keefe, Bruyette & Woods lowered their target price on Ares Commercial Real Estate from $6.00 to $5.50 and set a "market perform" rating on the stock in a report on Thursday, February 13th.

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Ares Commercial Real Estate Stock Performance

Shares of NYSE ACRE traded down $0.16 during mid-day trading on Wednesday, hitting $4.63. 308,484 shares of the company were exchanged, compared to its average volume of 549,828. The company has a quick ratio of 0.87, a current ratio of 0.87 and a debt-to-equity ratio of 2.17. The firm has a market cap of $253.71 million, a price-to-earnings ratio of -7.12 and a beta of 1.57. The stock has a 50 day simple moving average of $5.23 and a 200-day simple moving average of $6.20. Ares Commercial Real Estate has a 1-year low of $4.61 and a 1-year high of $7.99.

Ares Commercial Real Estate Cuts Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, April 15th. Investors of record on Monday, March 31st will be given a $0.15 dividend. The ex-dividend date of this dividend is Monday, March 31st. This represents a $0.60 annualized dividend and a yield of 12.97%. Ares Commercial Real Estate's dividend payout ratio is presently -92.31%.

Insiders Place Their Bets

In other news, VP Anton Feingold sold 7,615 shares of the firm's stock in a transaction on Friday, January 31st. The stock was sold at an average price of $5.68, for a total transaction of $43,253.20. Following the transaction, the vice president now directly owns 78,360 shares of the company's stock, valued at approximately $445,084.80. This trade represents a 8.86 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. 2.80% of the stock is owned by insiders.

Hedge Funds Weigh In On Ares Commercial Real Estate

Several large investors have recently bought and sold shares of the stock. JPMorgan Chase & Co. lifted its position in Ares Commercial Real Estate by 187.3% in the third quarter. JPMorgan Chase & Co. now owns 415,332 shares of the real estate investment trust's stock worth $2,907,000 after purchasing an additional 270,791 shares during the period. Geode Capital Management LLC boosted its position in shares of Ares Commercial Real Estate by 1.3% during the 3rd quarter. Geode Capital Management LLC now owns 1,272,163 shares of the real estate investment trust's stock valued at $8,907,000 after purchasing an additional 16,309 shares in the last quarter. Van ECK Associates Corp lifted its stake in Ares Commercial Real Estate by 19.5% during the fourth quarter. Van ECK Associates Corp now owns 591,036 shares of the real estate investment trust's stock valued at $3,481,000 after purchasing an additional 96,551 shares during the last quarter. FMR LLC boosted its holdings in Ares Commercial Real Estate by 211.0% during the third quarter. FMR LLC now owns 7,741 shares of the real estate investment trust's stock worth $54,000 after buying an additional 5,252 shares in the last quarter. Finally, State Street Corp grew its position in Ares Commercial Real Estate by 2.3% in the third quarter. State Street Corp now owns 1,052,314 shares of the real estate investment trust's stock worth $7,627,000 after buying an additional 23,845 shares during the last quarter. Institutional investors and hedge funds own 41.34% of the company's stock.

Ares Commercial Real Estate Company Profile

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.