Ares Commercial Real Estate Co. (NYSE:ACRE) Plans $0.15 Quarterly Dividend

Ares Commercial Real Estate Co. (NYSE:ACRE) announced a quarterly dividend on Thursday, February 13th,Wall Street Journal reports. Investors of record on Monday, March 31st will be paid a dividend of 0.15 per share by the real estate investment trust on Tuesday, April 15th. This represents a $0.60 dividend on an annualized basis and a yield of 11.82%. The ex-dividend date is Monday, March 31st.

Ares Commercial Real Estate has decreased its dividend payment by an average of 8.8% annually over the last three years. Ares Commercial Real Estate has a payout ratio of 161.3% indicating that the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Analysts expect Ares Commercial Real Estate to earn ($0.32) per share next year, which means the company may not be able to cover its $1.00 annual dividend with an expected future payout ratio of -312.5%.

Ares Commercial Real Estate Price Performance

ACRE stock traded down $0.28 during midday trading on Thursday, reaching $5.08. 1,752,431 shares of the stock were exchanged, compared to its average volume of 618,809. The stock has a market capitalization of $276.79 million, a PE ratio of -4.30 and a beta of 1.50. Ares Commercial Real Estate has a 52 week low of $5.01 and a 52 week high of $8.59. The company has a debt-to-equity ratio of 2.38, a current ratio of 0.87 and a quick ratio of 0.87. The company has a fifty day moving average price of $6.09 and a 200 day moving average price of $6.67.

Analyst Ratings Changes

ACRE has been the topic of a number of research reports. JMP Securities restated a “market perform” rating on shares of Ares Commercial Real Estate in a research report on Thursday. Keefe, Bruyette & Woods reduced their price target on Ares Commercial Real Estate from $6.00 to $5.50 and set a “market perform” rating on the stock in a research report on Thursday. JPMorgan Chase & Co. reduced their price target on Ares Commercial Real Estate from $6.00 to $5.50 and set a “neutral” rating on the stock in a research report on Thursday. Finally, StockNews.com upgraded Ares Commercial Real Estate from a “sell” rating to a “hold” rating in a research report on Tuesday, December 17th. Two analysts have rated the stock with a sell rating and six have given a hold rating to the company’s stock. Based on data from MarketBeat, the stock has an average rating of “Hold” and a consensus price target of $6.60.

Insider Activity

In related news, VP Anton Feingold sold 7,615 shares of the company’s stock in a transaction that occurred 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 represents a 8.86 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 2.80% of the stock is owned by company insiders.

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.