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 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 short-interest ratio is presently 2.5 days.

Insider Buying and Selling

In other Ares Commercial Real Estate news, VP Anton Feingold sold 7,615 shares of the company’s stock in a transaction on Friday, January 31st. The stock was sold at an average price of $5.68, for a total value of $43,253.20. Following the transaction, the vice president now owns 78,360 shares of the company’s stock, valued at approximately $445,084.80. This represents a 8.86 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders own 2.80% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in ACRE. Geode Capital Management LLC increased its stake in shares of Ares Commercial Real Estate by 1.3% in the third quarter. Geode Capital Management LLC now owns 1,272,163 shares of the real estate investment trust’s stock worth $8,907,000 after purchasing an additional 16,309 shares in the last quarter. State Street Corp lifted its holdings in shares of Ares Commercial Real Estate by 2.3% in the 3rd quarter. State Street Corp now owns 1,052,314 shares of the real estate investment trust’s stock worth $7,627,000 after acquiring an additional 23,845 shares during the last quarter. Hotchkis & Wiley Capital Management LLC increased its stake in shares of Ares Commercial Real Estate by 1.0% in the third quarter. Hotchkis & Wiley Capital Management LLC now owns 861,390 shares of the real estate investment trust’s stock worth $6,030,000 after buying an additional 8,900 shares during the period. Northern Trust Corp increased its stake in shares of Ares Commercial Real Estate by 32.3% in the fourth quarter. Northern Trust Corp now owns 605,491 shares of the real estate investment trust’s stock worth $3,566,000 after buying an additional 147,990 shares during the period. Finally, Van ECK Associates Corp increased its position in Ares Commercial Real Estate by 19.5% during the 4th quarter. Van ECK Associates Corp now owns 591,036 shares of the real estate investment trust’s stock valued at $3,481,000 after purchasing an additional 96,551 shares during the period. 41.34% of the stock is owned by institutional investors.

Ares Commercial Real Estate Price Performance

NYSE:ACRE traded down $0.03 on Monday, hitting $5.06. The company had a trading volume of 955,782 shares, compared to its average volume of 465,078. The company has a current ratio of 0.87, a quick ratio of 0.87 and a debt-to-equity ratio of 2.38. Ares Commercial Real Estate has a 52 week low of $5.01 and a 52 week high of $8.59. The firm has a 50 day moving average of $6.02 and a two-hundred day moving average of $6.62. The stock has a market capitalization of $275.70 million, a price-to-earnings ratio of -4.28 and a beta of 1.50.

Ares Commercial Real Estate Cuts Dividend

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

Analysts Set New Price Targets

A number of research analysts have commented on ACRE shares. StockNews.com upgraded shares of Ares Commercial Real Estate from a “sell” rating to a “hold” rating in a research note on Tuesday, December 17th. JPMorgan Chase & Co. reduced their price target on shares of Ares Commercial Real Estate from $6.00 to $5.50 and set a “neutral” rating on the stock in a research report on Thursday. JMP Securities reissued a “market perform” rating on shares of Ares Commercial Real Estate in a research report on Thursday. Finally, Keefe, Bruyette & Woods cut their price objective on shares of 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. Two equities research analysts have rated the stock with a sell rating and six have given a hold rating to the company. According to MarketBeat, the stock presently has an average rating of “Hold” and an average 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.