As of Friday close, Ares Commercial Real Estate Corporation’s (NYSE:ACRE) stock was down -$0.17, moving down -1.73 percent to $9.67. The average number of shares traded per day over the past five days has been 537,120 shares. 1 time new highs have been achieved over the past 5 days, with a -$0.79 fall in that time frame. In the last twenty days, the average volume was 541,750, while in the previous 50 days, it was 601,030.
Since last month, ACRE stock retreated -10.63%. Shares of the company fell to $9.38 on 08/18/23, the lowest level in the past month. A 52-week high of $13.83 was reached on 02/02/23 after having rallying from a 52-week low of $7.51. Since the beginning of this year, ACRE’s stock price has dropped by -5.64% or -$0.62, and marked a new high 15 times. However, the stock has declined by -30.08% since its 52-week high.
ACRE stock investors should be aware that Ares Commercial Real Estate Corporation (ACRE) stock had its last reported insider trading activity 221 days ago on Jan 10. Donohoe Bryan Patrick, the Chief Executive Officer of the company, disposed of 15,072 shares for $10.91 on Jan 10. It resulted in a $164,436 divestment by the insider. FEINGOLD ANTON sold 3,166 shares at an average price of $10.87 on Jan 10. The insider now owns 53,865 shares following the transaction.
Valuation Metrics
The stock’s beta is 1.43. Besides these, the trailing price-to-sales (P/S) ratio of 2.62, the price-to-book (PB) ratio of 0.76, and the price-to-cash flow ratio of 10.22 may also be considered.
The latest dividend of $0.33 per share was paid out, which is -5.71% less than last year’s $0.35. On Wednesday August 2 2023, a $0.02 dividend decrease was announced.
Financial Health
According to company report, the long-term debt-to-equity ratio for the quarter ending June 29 was 2.42, and the total debt-to-equity ratio was 2.42. On the profitability front, the trailing twelve-month gross margin is 47.40% percent. In the year ended June 29, operating margins totaled -2.40%. Based on annual data, ACRE earned $74.12 million in gross profit and brought in $106.85 million in revenue.
A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was 1.20%. Return on equity (ROE) for the past 12 months was -0.70%.
In Ares Commercial Real Estate Corporation’s quarter-end financial report for June 29, it reported total debt of $681.26 million against cash and short-term investments of $2.23 billion. According to the earnings report, the company had a lower net income in the recent quarter than it did in the previous quarter. ACRE’s revenue fell -0.64% to $26.5 million during the quarter, while net income inched up to $24.99 million. While analysts expected Ares Commercial Real Estate Corporation to report $0.28 quarterly earnings, the actual figure was -$0.04 per share, beating the consensus estimate by -114.30%. During the quarter, the company generated $16.91 million in EBITDA. The value of shareholders’ equity is $54.14 million.
Technical Picture
This quick technical analysis looks at Ares Commercial Real Estate Corporation’s (ACRE) price momentum. With a historical volatility rate of 12.20%, the RSI 9-day stood at 21.10% on 18 August.
With respect to its five-day moving average, the current Ares Commercial Real Estate Corporation price is down by -7.55% percent or -$0.79. At present, ACRE shares trade -9.03% below its 20-day simple moving average and +7.44% percent above its 100-day simple moving average. However, the stock is currently trading approximately -3.30% below its SMA50 and -21.64% below its SMA200.
Stochastic coefficient K was 9.78% and Stochastic coefficient D was 8.38%, while ATR was 0.26. Given the Stochastic reading of 21.64% for the 14-day period, the RSI (14) reading has been calculated as 31.14%. As of today, the MACD Oscillator reading stands at -0.39, while the 14-day reading stands at -0.51.
Analyst Ratings
Ares Commercial Real Estate Corporation downgraded its rating on Ares Commercial Real Estate Corporation (NYSE: ACRE) to a Mkt perform in a note to investors on Aug-19-23. The analysts firm previously had an Outperform rating on the stock.Ares Commercial Real Estate Corporation (ACRE) has been rated Overweight by analysts. According to 0 brokerage firms, ACRE is a sell, and 4 firms recommend it is a Hold. There are 0 analysts who say the stock is underweight. A total of 0 analysts rate Ares Commercial Real Estate Corporation stock as buy, with 3 recommending it as overweight.
With a median target price of $11.00, the current consensus forecast for the stock is $10.00 – $11.50. Based on these forecasts, analysts predict Ares Commercial Real Estate Corporation (ACRE) will achieve an average price target of $10.70.
