Ares Commercial Real Estate Co. (NYSE:ACRE) Short Interest Up 6.2% in April

Ares Commercial Real Estate Co. (NYSE:ACRE) was the target of a large growth in short interest in the month of April. As of April 15th, there was short interest totalling 1,880,000 shares, a growth of 6.2% from the March 31st total of 1,770,000 shares. Based on an average daily trading volume, of 769,300 shares, the days-to-cover ratio is presently 2.4 days.

Wall Street Analysts Forecast Growth

ACRE has been the topic of several recent analyst reports. Bank of America reaffirmed an “underperform” rating and set a $7.00 target price (down from $11.00) on shares of Ares Commercial Real Estate in a research report on Monday, March 4th. JPMorgan Chase & Co. reduced their target price on Ares Commercial Real Estate from $8.00 to $7.00 and set a “neutral” rating on the stock in a research report on Wednesday, April 10th. UBS Group reduced their target price on Ares Commercial Real Estate from $10.50 to $8.00 and set a “neutral” rating on the stock in a research report on Wednesday, March 20th. Keefe, Bruyette & Woods reduced their target price on Ares Commercial Real Estate from $8.00 to $7.50 and set a “market perform” rating on the stock in a research report on Wednesday, April 10th. Finally, TheStreet lowered Ares Commercial Real Estate from a “c-” rating to a “d+” rating in a research report on Tuesday, March 5th. One investment analyst has rated the stock with a sell rating and seven have assigned a hold rating to the company’s stock. According to MarketBeat, the company has an average rating of “Hold” and an average target price of $8.79.

Ares Commercial Real Estate Stock Performance

Shares of ACRE stock opened at $6.95 on Thursday. The company has a market capitalization of $378.22 million, a P/E ratio of -9.62 and a beta of 1.42. The business’s 50 day moving average is $7.25 and its two-hundred day moving average is $8.92. The company has a current ratio of 1.43, a quick ratio of 1.43 and a debt-to-equity ratio of 2.42. Ares Commercial Real Estate has a 12-month low of $6.36 and a 12-month high of $11.24.

Ares Commercial Real Estate Cuts Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, April 16th. Shareholders of record on Thursday, March 28th were given a dividend of $0.25 per share. The ex-dividend date of this dividend was Wednesday, March 27th. This represents a $1.00 dividend on an annualized basis and a yield of 14.39%. Ares Commercial Real Estate’s dividend payout ratio is currently -138.89%.

Insiders Place Their Bets

In related news, CEO Bryan Patrick Donohoe purchased 3,509 shares of Ares Commercial Real Estate stock in a transaction dated Sunday, March 10th. The stock was purchased at an average cost of $14.32 per share, with a total value of $50,248.88. Following the transaction, the chief executive officer now owns 41,259 shares in the company, valued at approximately $590,828.88. The purchase was disclosed in a document filed with the SEC, which is available through the SEC website. Company insiders own 2.80% of the company’s stock.

Hedge Funds Weigh In On Ares Commercial Real Estate

A number of hedge funds have recently bought and sold shares of the business. Raymond James Financial Services Advisors Inc. raised its holdings in shares of Ares Commercial Real Estate by 33.7% during the fourth quarter. Raymond James Financial Services Advisors Inc. now owns 136,850 shares of the real estate investment trust’s stock valued at $1,418,000 after acquiring an additional 34,491 shares during the last quarter. Penserra Capital Management LLC raised its holdings in shares of Ares Commercial Real Estate by 14.4% during the third quarter. Penserra Capital Management LLC now owns 51,638 shares of the real estate investment trust’s stock valued at $491,000 after acquiring an additional 6,519 shares during the last quarter. SG Americas Securities LLC raised its holdings in shares of Ares Commercial Real Estate by 21.9% during the fourth quarter. SG Americas Securities LLC now owns 29,395 shares of the real estate investment trust’s stock valued at $305,000 after acquiring an additional 5,286 shares during the last quarter. Samalin Investment Counsel LLC raised its holdings in shares of Ares Commercial Real Estate by 12.6% during the third quarter. Samalin Investment Counsel LLC now owns 25,519 shares of the real estate investment trust’s stock valued at $243,000 after acquiring an additional 2,859 shares during the last quarter. Finally, Connor Clark & Lunn Investment Management Ltd. acquired a new stake in shares of Ares Commercial Real Estate in the third quarter valued at approximately $250,000. Hedge funds and other institutional investors own 41.34% of the company’s stock.

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.