Ares Commercial Real Estate Co. (NYSE:ACRE) Sees Large Drop in Short Interest

Ares Commercial Real Estate Co. (NYSE:ACRE) was the target of a significant drop in short interest in the month of January. As of January 31st, there was short interest totalling 1,480,000 shares, a drop of 9.2% from the January 15th total of 1,630,000 shares. Based on an average daily volume of 591,000 shares, the days-to-cover ratio is presently 2.5 days.

Insider Activity

In other news, VP Anton Feingold sold 7,615 shares of Ares Commercial Real Estate stock in a transaction on Friday, January 31st. The shares were sold at an average price of $5.68, for a total value of $43,253.20. Following the transaction, the vice president now directly owns 78,360 shares of the company’s stock, valued at $445,084.80. The trade was a 8.86 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Insiders own 2.80% of the company’s stock.

Institutional Investors Weigh In On Ares Commercial Real Estate

Institutional investors have recently added to or reduced their stakes in the business. BNP Paribas Financial Markets lifted its stake in Ares Commercial Real Estate by 17.1% in the third quarter. BNP Paribas Financial Markets now owns 11,733 shares of the real estate investment trust’s stock worth $82,000 after acquiring an additional 1,711 shares during the period. Wells Fargo & Company MN raised its holdings in Ares Commercial Real Estate by 3.9% in the fourth quarter. Wells Fargo & Company MN now owns 50,424 shares of the real estate investment trust’s stock worth $297,000 after purchasing an additional 1,905 shares in the last quarter. Intech Investment Management LLC increased its holdings in shares of Ares Commercial Real Estate by 21.5% during the fourth quarter. Intech Investment Management LLC now owns 16,635 shares of the real estate investment trust’s stock valued at $98,000 after acquiring an additional 2,943 shares in the last quarter. Price T Rowe Associates Inc. MD increased its holdings in shares of Ares Commercial Real Estate by 4.3% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 73,116 shares of the real estate investment trust’s stock valued at $431,000 after acquiring an additional 2,982 shares in the last quarter. Finally, CFO4Life Group LLC increased its holdings in Ares Commercial Real Estate by 21.4% in the 4th quarter. CFO4Life Group LLC now owns 17,000 shares of the real estate investment trust’s stock worth $100,000 after buying an additional 3,000 shares in the last quarter. 41.34% of the stock is owned by hedge funds and other institutional investors.

Ares Commercial Real Estate Stock Down 0.5 %

ACRE traded down $0.03 during trading hours on Monday, hitting $5.06. 955,782 shares of the company’s stock were exchanged, compared to its average volume of 465,078. The stock has a market cap of $275.70 million, a price-to-earnings ratio of -4.28 and a beta of 1.50. The company has a quick ratio of 0.87, a current ratio of 0.87 and a debt-to-equity ratio of 2.38. The stock’s 50-day moving average is $6.02 and its two-hundred day moving average is $6.62. Ares Commercial Real Estate has a 1-year low of $5.01 and a 1-year high of $8.59.

Ares Commercial Real Estate Cuts Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, April 15th. Shareholders of record on Monday, March 31st will be paid a dividend of $0.15 per share. The ex-dividend date of this dividend is Monday, March 31st. This represents a $0.60 dividend on an annualized basis and a yield of 11.87%. Ares Commercial Real Estate’s dividend payout ratio (DPR) is presently -84.75%.

Analyst Ratings Changes

Several equities research analysts recently commented on ACRE shares. JMP Securities reiterated a “market perform” rating on shares of Ares Commercial Real Estate in a research report on Thursday. StockNews.com raised shares of Ares Commercial Real Estate from a “sell” rating to a “hold” rating in a research report on Tuesday, December 17th. JPMorgan Chase & Co. decreased their price target on Ares Commercial Real Estate from $6.00 to $5.50 and set a “neutral” rating for the company in a report on Thursday. Finally, Keefe, Bruyette & Woods reduced their target price on Ares Commercial Real Estate from $6.00 to $5.50 and set a “market perform” rating for the company in a research note on Thursday. Two investment analysts have rated the stock with a sell rating and six have given a hold rating to the company. Based on data from MarketBeat, the company has a consensus rating of “Hold” and a consensus price target of $6.60.

About Ares Commercial Real Estate

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.