why Arbor Realty Trust Inc. [ABR] is a Good Choice for Investors After New Price Target of $18.60

Arbor Realty Trust Inc. [NYSE: ABR] plunged by -$0.82 during the normal trading session on Thursday and reaching a high of $12.32 during the day while it closed the day at $11.58. The company report on August 2, 2022 that Arbor Realty Trust, Inc. Announces Pricing of Upsized Offering of $250 Million of 7.50% Convertible Senior Notes due 2025.


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Arbor Realty Trust, Inc. (NYSE: ABR) today announced the pricing of its upsized offering of $250 million aggregate principal amount of its 7.50% Convertible Senior Notes due 2025 (the “Notes”) in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”). The aggregate principal amount of the offering was increased from the previously announced offering of $200 million aggregate principal amount of Notes. The sale of the Notes to the initial purchasers is expected to settle on or about August 5, 2022, subject to customary closing conditions. The Company also granted the initial purchasers of the Notes a 13-day option to purchase up to an additional $37.5 million aggregate principal amount of the Notes on the same terms and conditions.

The Notes will be senior, unsecured obligations of the Company and will bear interest at a rate equal to 7.50% per year, payable semiannually in arrears on February 1 and August 1 of each year, beginning on February 1, 2023 and will mature on August 1, 2025, unless earlier converted or repurchased. The Company will not have the right to redeem the Notes prior to maturity. The Notes will be convertible, subject to certain conditions, into cash, shares of the Company’s common stock or a combination thereof, at the Company’s sole election. The conversion rate will initially equal 59.8480 shares of the Company’s common stock per $1,000 principal amount of Notes, which is equivalent to an initial conversion price of approximately $16.71 per share of common stock, representing an approximate 10.00% conversion premium based on the closing price of the Company’s common stock of $15.19 per share on August 2, 2022.

Arbor Realty Trust Inc. stock has also loss -14.09% of its value over the past 7 days. However, ABR stock has declined by -11.67% in the 3 months of the year. Over the past six months meanwhile, it has lost -32.99% and lost -36.79% year-on date.

The market cap for ABR stock reached $2.06 billion, with 170.30 million shares outstanding and 166.60 million shares in the current float. Compared to the average trading volume of 2.08M shares, ABR reached a trading volume of 4559145 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here’s what leading stock market gurus have to say about Arbor Realty Trust Inc. [ABR]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for ABR shares is $18.60 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on ABR stock is a recommendation set at 2.20. 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.

Piper Sandler have made an estimate for Arbor Realty Trust Inc. shares, keeping their opinion on the stock as Overweight, with their previous recommendation back on April 25, 2022. While these analysts kept the previous recommendation, Wolfe Research raised their target price to Outperform. The new note on the price target was released on November 06, 2020, representing the official price target for Arbor Realty Trust Inc. stock. Previously, the target price had yet another raise from $9 to $9.50, while JP Morgan kept a Overweight rating on ABR stock.

The Average True Range (ATR) for Arbor Realty Trust Inc. is set at 0.50, with the Price to Sales ratio for ABR stock in the period of the last 12 months amounting to 2.24. The Price to Book ratio for the last quarter was 0.88, with the Price to Cash per share for the same quarter was set at 1.92.

ABR stock trade performance evaluation

Arbor Realty Trust Inc. [ABR] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -14.09. With this latest performance, ABR shares dropped by -22.07% in over the last four-week period, additionally sinking by -32.99% over the last 6 months – not to mention a drop of -37.30% 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 ABR stock in for the last two-week period is set at 21.60, with the RSI for the last a single of trading hit 16.76, and the three-weeks RSI is set at 26.44 for Arbor Realty Trust Inc. [ABR]. The present Moving Average for the last 50 days of trading for this stock 14.99, while it was recorded at 12.27 for the last single week of trading, and 16.23 for the last 200 days.

Arbor Realty Trust Inc. [ABR]: An insightful look at the core fundamentals

Operating Margin for any stock indicates how profitable investing would be, and Arbor Realty Trust Inc. [ABR] shares currently have an operating margin of +75.95 and a Gross Margin at +99.05. Arbor Realty Trust Inc.’s Net Margin is presently recorded at +40.65.

Return on Equity for this stock inclined to 18.04, with Return on Assets sitting at 2.98.

Earnings per share (EPS) analysis for Arbor Realty Trust Inc. [ABR] stock

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 ABR. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Arbor Realty Trust Inc. go to 8.00%.

Arbor Realty Trust Inc. [ABR]: Insider Ownership positions

There are presently around $838 million, or 44.60% of ABR stock, in the hands of institutional investors. The top three institutional holders of ABR stocks are: BLACKROCK INC. with ownership of 14,736,254, which is approximately -0.984% of the company’s market cap and around 1.00% of the total institutional ownership; VANGUARD GROUP INC, holding 14,319,923 shares of the stock with an approximate value of $165.82 million in ABR stocks shares; and STATE STREET CORP, currently with $34.94 million in ABR stock with ownership of nearly 4.432% of the company’s market capitalization.

Positions in Arbor Realty Trust Inc. stocks held by institutional investors increased at the end of July and at the time of the July reporting period, where 144 institutional holders increased their position in Arbor Realty Trust Inc. [NYSE:ABR] by around 12,489,126 shares. Additionally, 113 investors decreased positions by around 6,895,089 shares, while 50 investors held positions by with 52,973,236 shares. The mentioned changes placed institutional holdings at 72,357,451 shares, according to the latest SEC report filing. ABR stock had 41 new institutional investments in for a total of 1,270,155 shares, while 37 institutional investors sold positions of 2,008,021 shares during the same period.

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