Wells Fargo & Company Lowers Ares Commercial Real Estate (NYSE:ACRE) to Underweight

Wells Fargo & Company downgraded shares of Ares Commercial Real Estate (NYSE:ACRE) from an equal weight rating to an underweight rating in a report published on Friday, MarketBeat reports. Wells Fargo & Company currently has $7.00 target price on the real estate investment trust’s stock, down from their previous target price of $7.50.

A number of other equities analysts have also commented on the stock. StockNews.com lowered shares of Ares Commercial Real Estate from a hold rating to a sell rating in a research note on Thursday, August 15th. BTIG Research reaffirmed a neutral rating on shares of Ares Commercial Real Estate in a research report on Friday, July 19th. Three investment analysts have rated the stock with a sell rating and five have given a hold rating to the company’s stock. According to MarketBeat, Ares Commercial Real Estate has an average rating of Hold and an average price target of $7.20.

Ares Commercial Real Estate Price Performance

ACRE stock opened at $7.37 on Friday. The firm has a 50-day moving average of $7.23 and a two-hundred day moving average of $7.11. The firm has a market capitalization of $401.72 million, a PE ratio of -8.88 and a beta of 1.45. The company has a current ratio of 0.87, a quick ratio of 0.87 and a debt-to-equity ratio of 2.32. Ares Commercial Real Estate has a one year low of $6.36 and a one year high of $11.24.

Ares Commercial Real Estate Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Tuesday, October 15th. Shareholders of record on Monday, September 30th will be paid a dividend of $0.25 per share. This represents a $1.00 dividend on an annualized basis and a dividend yield of 13.57%. The ex-dividend date of this dividend is Monday, September 30th. Ares Commercial Real Estate’s dividend payout ratio (DPR) is currently -120.48%.

Hedge Funds Weigh In On Ares Commercial Real Estate

Hedge funds have recently modified their holdings of the stock. Vanguard Group Inc. boosted its position in Ares Commercial Real Estate by 1.3% during the first quarter. Vanguard Group Inc. now owns 2,783,379 shares of the real estate investment trust’s stock valued at $20,736,000 after purchasing an additional 34,611 shares during the last quarter. Mirae Asset Global Investments Co. Ltd. lifted its holdings in shares of Ares Commercial Real Estate by 11.5% during the 1st quarter. Mirae Asset Global Investments Co. Ltd. now owns 790,404 shares of the real estate investment trust’s stock valued at $5,889,000 after buying an additional 81,534 shares during the last quarter. MGO One Seven LLC grew its stake in shares of Ares Commercial Real Estate by 2,609.3% in the 4th quarter. MGO One Seven LLC now owns 570,331 shares of the real estate investment trust’s stock valued at $5,909,000 after buying an additional 549,280 shares in the last quarter. Van ECK Associates Corp increased its holdings in Ares Commercial Real Estate by 26.9% in the second quarter. Van ECK Associates Corp now owns 524,694 shares of the real estate investment trust’s stock worth $3,489,000 after buying an additional 111,194 shares during the last quarter. Finally, Relative Value Partners Group LLC raised its position in Ares Commercial Real Estate by 1.6% during the fourth quarter. Relative Value Partners Group LLC now owns 416,194 shares of the real estate investment trust’s stock valued at $4,312,000 after acquiring an additional 6,588 shares in the last quarter. 41.34% of the stock is owned by institutional investors and hedge funds.

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.