Worth Asset Management LLC recently acquired a new stake in Ares Commercial Real Estate Co. (NYSE:ACRE) during the second quarter of this year, according to information disclosed by the company to the Securities and Exchange Commission (SEC). The fund purchased 11,767 shares of the real estate investment trust’s stock, which were valued at approximately $119,000.
Ares Commercial Real Estate Corporation is a specialty finance company that focuses on originating and investing in commercial real estate (CRE) loans and related investments within the United States. The company offers a variety of financing solutions for CRE property owners, operators, and sponsors. These solutions include senior mortgage loans, subordinate debt and preferred equity products, mezzanine loans, as well as other CRE investments such as commercial mortgage-backed securities.
By providing these financing options, Ares Commercial Real Estate plays a significant role in supporting the growth and development of commercial properties across the country. The company’s expertise in CRE lending allows it to cater to the needs of various stakeholders involved in real estate projects.
Commercial real estate has long been an attractive investment avenue due to its potential for stable income streams and capital appreciation. As an established specialty finance company in this sector, Ares Commercial Real Estate is well-positioned to seize opportunities presented by the market.
The acquisition of shares by Worth Asset Management LLC reflects investor confidence in Ares Commercial Real Estate’s prospects and demonstrates their belief in the long-term viability of the company. Such an endorsement from investors further strengthens Ares Commercial Real Estate’s position within the industry.
Investors interested in exploring more about Ares Commercial Real Estate may refer to our latest research report on this corporation. This report provides valuable insights into the company’s operations, financial performance, competitive landscape, and future outlook.
As September 19th marks our reference date for this article, it is important for investors and market participants alike to keep track of any recent developments pertaining to Ares Commercial Real Estate. The company’s financial performance, industry trends, and regulatory changes can all influence its stock value and overall market sentiment.
Overall, Ares Commercial Real Estate Corporation remains a prominent player in the commercial real estate finance sector. Its ability to provide comprehensive financing solutions to CRE property owners sets it apart from its competitors. With Worth Asset Management LLC acquiring a new stake in the company, it signals positive sentiments towards Ares Commercial Real Estate’s future prospects. As always, investors should conduct thorough research before making any investment decisions.
Updated on: 19/09/2023
Debt to equity ratio: Strong Buy
Price to earnings ratio: Strong Buy
Price to book ratio: Strong Buy
DCF: Strong Buy
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Ares Commercial Real Estate Corporation Gains Attention from Hedge Funds and Analysts for Potential Growth Opportunities
Ares Commercial Real Estate Corporation (ACRE), a specialty finance company that focuses on commercial real estate (CRE) loans and related investments in the United States, has recently seen significant changes in its positions held by various hedge funds. Ahrens Investment Partners LLC, Quarry LP, Ameritas Advisory Services LLC, Samalin Investment Counsel LLC, and CWM LLC are some of the firms that have acquired new positions in ACRE during the first quarter of this year.
Ahrens Investment Partners LLC purchased shares of Ares Commercial Real Estate valued at approximately $28,000. Quarry LP also acquired a new position worth around $31,000 during the same period. Likewise, Ameritas Advisory Services LLC invested about $49,000 in shares of ACRE. Another firm called Samalin Investment Counsel LLC made a significant purchase of shares worth approximately $50,000. Finally, CWM LLC increased its stake in Ares Commercial Real Estate by a whopping 37,800%, acquiring an additional 6,804 shares during the first quarter. Currently, CWM LLC owns 6,822 shares valued at $62,000.
It is notable that institutional investors own about 38.37% of the company’s stock. The increasing interest from hedge funds suggests that ACRE is gaining attention as a viable investment opportunity within the CRE sector.
Several research analysts have also contemplated and released reports on ACRE’s performance and prospects. JMP Securities lifted their price target for Ares Commercial Real Estate from $11.00 to $11.50 and issued an “outperform” rating for the stock in a recent research report dated August 3rd.
Wells Fargo & Company initiated coverage on Ares Commercial Real Estate with an “equal weight” rating and set a price target of $10.00 for the stock on September 13th. Furthermore, JPMorgan Chase & Co., in their research report published on July 24th, raised their price target for the stock from $8.00 to $10.00. Raymond James, however, moved in the opposite direction and downgraded ACRE from an “outperform” rating to a “market perform” rating on August 18th, citing a valuation call as the reason behind their decision. Lastly, StockNews.com initiated coverage on Ares Commercial Real Estate on August 17th, assigning a “hold” rating to the company.
With six research analysts issuing a hold rating and two giving it a buy rating, ACRE has been given an average rating of “Hold” by Bloomberg.com. The average price target for Ares Commercial Real Estate is projected to be around $11.56.
As of Tuesday’s opening bell on September 19th, Ares Commercial Real Estate was trading at $10.42 per share. The stock has shown stability with a 50-day moving average price of $10.38 and a 200-day moving average price of $9.69.
ACRE has experienced fluctuations over the past year with its lowest point being at $7.52 and its highest reaching $13.00 within that period. It is important to note that Ares Commercial Real Estate Co.’s debt-to-equity ratio stands at 2.27, indicating moderate financial leverage.
The company recently announced its quarterly dividend payment that will be made to investors on October 17th. Shareholders of record as of September 29th will receive a dividend of $0.33 per share owned—representing an annualized dividend amount of $1.32—yielding an impressive rate of 12.67%. The ex-dividend date for this particular dividend has been set for September 28th.
As we analyze these recent developments regarding Ares Commercial Real Estate Corporation—a specialty finance company specializing in CRE loans—it becomes clear that there is growing interest from hedge funds and research analysts in the company’s performance and potential for future growth. With positive price targets, solid dividend payments, and a mix of ratings from research analysts, investors should critically assess ACRE’s prospects before making any financial decisions.