Ares Commercial Real Estate Corporation [NYSE: ACRE] price plunged by -11.40 percent to reach at -$1.86. The company report on June 18, 2021 that Ares Commercial Real Estate Corporation Announces Pricing of Offering of Common Stock.
Ares Commercial Real Estate Corporation (the “Company”) (NYSE:ACRE), announced the pricing of an underwritten public offering of 6,500,000 shares of common stock for total estimated gross proceeds of approximately $102.8 million.
The Company has also granted the underwriters an option for 30 days to purchase up to an additional 975,000 shares of common stock. The offering is expected to close on or about June 22, 2021, subject to customary closing conditions. The Company intends to use all of the net proceeds from the offering for general corporate purposes, including investing in mortgage loans and other target assets and investments consistent with its investment strategies and investment guidelines, funding commitments on existing mortgage loans, and repaying indebtedness.
A sum of 6213932 shares traded at recent session while its average daily volume was at 493.18K shares. Ares Commercial Real Estate Corporation shares reached a high of $15.39 and dropped to a low of $14.45 until finishing in the latest session at $14.45.
The one-year ACRE stock forecast points to a potential upside of 9.69. The average equity rating for ACRE stock is currently 2.00, trading closer to a bullish pattern in the stock market.
Guru’s Opinion on Ares Commercial Real Estate Corporation [ACRE]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for ACRE shares is $16.00 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on ACRE stock is a recommendation set at 2.00. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
BTIG Research have made an estimate for Ares Commercial Real Estate Corporation shares, keeping their opinion on the stock as Buy, with their previous recommendation back on February 03, 2021. The new note on the price target was released on November 20, 2020, representing the official price target for Ares Commercial Real Estate Corporation stock. Previously, the target price had yet another raise from $9 to $10.50, while Keefe Bruyette kept a Outperform rating on ACRE stock. On January 08, 2020, analysts increased their price target for ACRE shares from 15.50 to 16.
The Average True Range (ATR) for Ares Commercial Real Estate Corporation is set at 0.46, with the Price to Sales ratio for ACRE stock in the period of the last 12 months amounting to 5.03. The Price to Book ratio for the last quarter was 0.86, with the Price to Cash per share for the same quarter was set at 2.14.
ACRE Stock Performance Analysis:
Ares Commercial Real Estate Corporation [ACRE] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -13.68. With this latest performance, ACRE shares dropped by -3.47% in over the last four-week period, additionally plugging by 12.35% over the last 6 months – not to mention a rise of 59.55% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for ACRE stock in for the last two-week period is set at 34.14, with the RSI for the last a single of trading hit 25.37, and the three-weeks RSI is set at 40.08 for Ares Commercial Real Estate Corporation [ACRE]. The present Moving Average for the last 50 days of trading for this stock 15.11, while it was recorded at 16.25 for the last single week of trading, and 12.50 for the last 200 days.
Insight into Ares Commercial Real Estate Corporation Fundamentals:
Operating Margin for any stock indicates how profitable investing would be, and Ares Commercial Real Estate Corporation [ACRE] shares currently have an operating margin of +58.03 and a Gross Margin at +81.16. Ares Commercial Real Estate Corporation’s Net Margin is presently recorded at +16.72.
Return on Total Capital for ACRE is now 4.14, given the latest momentum, and Return on Invested Capital for the company is 1.63. Return on Equity for this stock inclined to 4.86, with Return on Assets sitting at 1.18. When it comes to the capital structure of this company, Ares Commercial Real Estate Corporation [ACRE] has a Total Debt to Total Equity ratio set at 302.54. Additionally, ACRE Total Debt to Total Capital is recorded at 75.16, with Total Debt to Total Assets ending up at 74.17. Long-Term Debt to Equity for the company is recorded at 243.87, with the Long-Term Debt to Total Capital now at 60.58.
Reflecting on the efficiency of the workforce at the company, Ares Commercial Real Estate Corporation [ACRE] managed to generate an average of $15,062 per employee. Receivables Turnover for the company is 109.41 with a Total Asset Turnover recorded at a value of 0.07.
ACRE Stock EPS
With the latest financial reports released by the company, Ares Commercial Real Estate Corporation posted 0.32/share EPS, while the average EPS was predicted by analysts to be reported at 0.25/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 28.00%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for ACRE. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Ares Commercial Real Estate Corporation go to -1.81%.
Ares Commercial Real Estate Corporation [ACRE] Insider Position Details
There are presently around $316 million, or 54.60% of ACRE stock, in the hands of institutional investors. The top three institutional holders of ACRE stocks are: BLACKROCK INC. with ownership of 3,403,695, which is approximately 6.063% of the company’s market cap and around 0.80% of the total institutional ownership; VANGUARD GROUP INC, holding 1,831,628 shares of the stock with an approximate value of $26.47 million in ACRE stocks shares; and DELPHI FINANCIAL GROUP, INC., currently with $22.7 million in ACRE stock with ownership of nearly 2.206% of the company’s market capitalization.
Positions in Ares Commercial Real Estate Corporation stocks held by institutional investors increased at the end of May and at the time of the May reporting period, where 75 institutional holders increased their position in Ares Commercial Real Estate Corporation [NYSE:ACRE] by around 5,219,957 shares. Additionally, 54 investors decreased positions by around 2,678,230 shares, while 21 investors held positions by with 13,945,219 shares. The mentioned changes placed institutional holdings at 21,843,406 shares, according to the latest SEC report filing. ACRE stock had 26 new institutional investments in for a total of 2,913,692 shares, while 17 institutional investors sold positions of 1,928,215 shares during the same period.