Ares Commercial Real Estate Co. (NYSE: ACRE – Get a rating) was the target of a surge in short-term interest in July. As of July 31, there was short interest totaling 1,440,000 shares, an increase of 10.8% from the July 15 total of 1,300,000 shares. Based on an average trading volume of 837,100 shares, the short interest ratio is currently 1.7 days. Approximately 5.6% of the company’s shares are sold short.
Analysts set new price targets
ACRE has been the subject of a number of research analyst reports. Credit Suisse Group lowered its price target on Ares Commercial Real Estate to $14.50 in a Friday, July 22 research report. JMP Securities lowered its price target on Ares Commercial Real Estate from $16.50 to $15.00 and gave the stock a “market outperformance” rating in a Monday, Aug. 1 research note. Finally, JPMorgan Chase & Co. raised its price target on Ares Commercial Real Estate shares from $14.50 to $16.00 and gave the company a “neutral” rating in a Monday research report. April 25.
Institutional investors weigh in on Ares Commercial Real Estate
Hedge funds and other institutional investors have recently increased or reduced their stakes in the company. State Street Corp increased its stake in Ares Commercial Real Estate by 4.1% in the second quarter. State Street Corp now owns 1,167,240 shares of the real estate investment trust valued at $14,677,000 after buying an additional 46,082 shares last quarter. Cubist Systematic Strategies LLC increased its holdings in Ares Commercial Real Estate by 32.4% during the 2nd quarter. Cubist Systematic Strategies LLC now owns 94,862 shares of the real estate investment trust worth $1,160,000 after purchasing an additional 23,222 shares in the last quarter. Millennium Management LLC purchased a new position in Ares Commercial Real Estate in Q2 for a value of approximately $8,022,000. Clearstead Advisors LLC purchased a new position in Ares Commercial Real Estate during Q2 worth approximately $385,000. Finally, UBS Asset Management Americas Inc. increased its position in Ares Commercial Real Estate shares by 20.3% during the second quarter. UBS Asset Management Americas Inc. now owns 37,434 shares of the real estate investment trust valued at $458,000 after purchasing an additional 6,314 shares during the period. 46.66% of the shares are currently held by institutional investors.
Ares Commercial Real Estate Stock Performance
NYSE ACRE traded down $0.08 on Tuesday, hitting $13.92. 2,018 shares of the stock have traded, compared to its average volume of 549,468. The company has a leverage ratio of 2.39, a quick ratio of 0.61 and a current ratio of 0.61. The company’s fifty-day moving average is $12.89 and its two-hundred-day moving average is $14.25. Ares Commercial Real Estate has a 12 month low of $11.18 and a 12 month high of $16.48. The company has a market capitalization of $757.80 million, a price-earnings ratio of 12.47 and a beta of 1.24.
Ares Commercial Real Estate cuts its dividend
The company also recently declared a quarterly dividend, which will be paid on Monday, October 17. Shareholders of record on Friday, September 30 will receive a dividend of $0.33 per share. The ex-dividend date is Thursday, September 29. This represents an annualized dividend of $1.32 and a dividend yield of 9.48%. Ares Commercial Real Estate’s payout ratio is 118.92%.
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. The company offers a range of financing solutions for owners, operators and sponsors of CRE properties. It issues first mortgage loans, subordinated debt products, mezzanine loans, preferred equity investments in real estate and other CRE investments, including commercial mortgage-backed securities.
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