On September 13, 2023, stock analysts from Wells Fargo & Company initiated coverage on Ares Commercial Real Estate (NYSE:ACRE) with an “equal weight” rating and a target price of $10.00 per share. This report provides insights into the real estate investment trust’s performance and future prospects. According to Wells Fargo & Company, this price target implies a potential downside of 4.21% compared to the company’s previous closing price.
At the opening of the New York Stock Exchange on Wednesday, ACRE shares were trading at $10.44. The company exhibits a debt-to-equity ratio of 2.27, indicating its use of leverage in financing its operations. Additionally, ACRE boasts a current ratio and quick ratio both standing at 1.36, demonstrating the company’s liquidity position.
With a market capitalization of $565.18 million, ACRE is a mid-sized real estate investment trust operating in the commercial sector. It is worth noting that ACRE has reported a negative price-to-earnings ratio of -104.40, suggesting that the company has experienced losses over the past year. However, it is important to evaluate this metric within the context of other fundamental factors before drawing any conclusions.
ACRE’s stock performance reveals a one-year low of $7.52 and a one-year high of $13.42. These figures illustrate the volatility that investors may expect when trading this security on the open market.
Currently, ACRE’s fifty-day moving average stands at $10.36 while its 200-day moving average is reported as $9.71 by Wells Fargo & Company’s stock analysts’ data.
Investors interested in exploring further details regarding Ares Commercial Real Estate can find additional information in our latest stock report on ACRE.
(Note: Please note that all information provided above is based on data available as of September 13, 2023, and is subject to change. It is recommended that investors conduct thorough research and consult with financial advisors before making any investment decisions.)
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ACRE’s Future Prospects and Investor Confidence: Analyst Ratings and Ownership Changes
Ares Commercial Real Estate Corporation (ACRE), a specialty finance company based in the United States, has recently attracted attention from various research firms. JPMorgan Chase & Co., for instance, raised their price target on ACRE shares from $8.00 to $10.00 in a report released on July 24th, 2023. On the other hand, Raymond James downgraded their rating on ACRE from “outperform” to “market perform” on August 18th due to a valuation call.
JMP Securities also played a part in analyzing ACRE’s performance by increasing their price objective from $11.00 to $11.50 and giving the stock an “outperform” rating on August 3rd. Additionally, StockNews.com began covering Ares Commercial Real Estate and provided a “hold” rating on August 17th.
With these varying ratings and recommendations, it is clear that there is no consensus among analysts regarding the future prospects of ACRE. Currently, six research analysts have rated the stock as a hold while two have suggested buying shares of the company.
As of September 13, 2023, Bloomberg data indicates that ACRE has an average rating of “Hold” and an average price target of $11.56 per share. However, it is important to note that these ratings and targets are subject to change as conditions evolve.
In terms of ownership changes, large investors have made some adjustments to their holdings in ACRE. Raymond James Financial Services Advisors Inc., for instance, increased its holdings by 28.6% during the first quarter of this year. They now own 96,443 shares valued at approximately $1,497,000.
Similarly, HighTower Advisors LLC witnessed significant growth in its stake by 141.5% during the same period and now owns around 43,713 shares worth roughly $678,000. PNC Financial Services Group Inc. also made a substantial acquisition, increasing its holdings in ACRE by a staggering 3,015.9% to reach 43,000 shares valued at $668,000.
MetLife Investment Management LLC witnessed a growth of 57.9% in their ACRE holdings during the first quarter of this year, bringing their ownership to 21,275 shares equating to approximately $330,000. Lastly, Great West Life Assurance Co. Can increased its holdings by 6.6% and now holds 25,266 shares worth around $394,000.
These changes in ownership patterns demonstrate the confidence that certain institutional investors have in Ares Commercial Real Estate Corporation and its potential for growth within the commercial real estate market.
In summary, Ares Commercial Real Estate Corporation specializes in originating and investing in commercial real estate loans and related investments throughout the United States. The company offers a range of financing solutions tailored to meet the needs of CRE property owners, operators, and sponsors. These include senior mortgage loans, subordinate debt and preferred equity products, mezzanine loans, as well as investments in commercial mortgage-backed securities. As indicated by varying research firm opinions and ownership adjustments from large investors, ACRE’s future performance continues to garner attention within the financial industry.
