Zacks Investment Research Upgrades Ares Commercial Real Estate (ACRE) to “Buy”

Ares Commercial Real Estate (NYSE:ACRE) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research report issued on Wednesday. The firm presently has a $16.00 price objective on the real estate investment trust’s stock. Zacks Investment Research‘s target price would suggest a potential upside of 13.88% from the stock’s current price.

According to Zacks, “Ares Commercial Real Estate Corporation is a specialty finance company focused on originating, investing in and managing middle-market commercial real estate loans and other commercial real estate investments. The Company’s financing solutions are comprised of its target investments, which include the following: Transitional senior mortgage loans, Stretch senior mortgage loans, Subordinate debt mortgage loans and Other CRE debt and preferred equity investments. Ares Commercial Real Estate Corporation is based in Chicago, Illinois. “

Several other analysts also recently commented on the company. Credit Suisse Group upped their price objective on Ares Commercial Real Estate from $14.00 to $14.50 and gave the company a “neutral” rating in a research note on Tuesday, August 21st. JMP Securities upped their price objective on Ares Commercial Real Estate from $14.50 to $15.00 and gave the company a “market outperform” rating in a research note on Monday, July 30th. Raymond James began coverage on Ares Commercial Real Estate in a research note on Monday, July 23rd. They set an “outperform” rating for the company. JPMorgan Chase & Co. downgraded Ares Commercial Real Estate from an “overweight” rating to a “neutral” rating in a research note on Monday, July 23rd. Finally, ValuEngine downgraded Ares Commercial Real Estate from a “buy” rating to a “hold” rating in a research note on Friday, June 1st. One investment analyst has rated the stock with a sell rating, four have issued a hold rating and four have given a buy rating to the company’s stock. Ares Commercial Real Estate currently has an average rating of “Hold” and an average target price of $14.70.

Shares of NYSE ACRE traded down $0.08 during trading hours on Wednesday, reaching $14.05. The stock had a trading volume of 4,801 shares, compared to its average volume of 97,167. The stock has a market cap of $404.65 million, a PE ratio of 12.66 and a beta of 0.54. Ares Commercial Real Estate has a fifty-two week low of $11.96 and a fifty-two week high of $14.77.

Ares Commercial Real Estate (NYSE:ACRE) last posted its quarterly earnings data on Thursday, July 26th. The real estate investment trust reported $0.35 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $0.32 by $0.03. The firm had revenue of $29.60 million during the quarter, compared to the consensus estimate of $27.30 million. Ares Commercial Real Estate had a return on equity of 8.85% and a net margin of 32.36%. research analysts forecast that Ares Commercial Real Estate will post 1.32 EPS for the current year.

Hedge funds have recently modified their holdings of the company. SG Americas Securities LLC purchased a new position in Ares Commercial Real Estate in the 2nd quarter valued at approximately $100,000. Connor Clark & Lunn Investment Management Ltd. purchased a new position in Ares Commercial Real Estate in the 2nd quarter valued at approximately $161,000. Russell Investments Group Ltd. purchased a new position in Ares Commercial Real Estate in the 2nd quarter valued at approximately $211,000. A.R.T. Advisors LLC purchased a new position in Ares Commercial Real Estate in the 1st quarter valued at approximately $248,000. Finally, GSA Capital Partners LLP increased its stake in Ares Commercial Real Estate by 113.9% in the 2nd quarter. GSA Capital Partners LLP now owns 23,888 shares of the real estate investment trust’s stock valued at $330,000 after purchasing an additional 12,719 shares in the last quarter. 62.75% of the stock is owned by institutional investors and hedge funds.

Ares Commercial Real Estate Company Profile

Ares Commercial Real Estate Corporation, a specialty finance company, originates and invests in commercial real estate loans and related investments in the United States. It provides a range of financing solutions for the owners, operators, and sponsors of commercial real estate (CRE) properties. The company originates senior mortgage loans, subordinate debt products, mezzanine loans, real estate preferred equity investments, and other CRE investments.

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