BTIG Research has recently resumed Ares Commercial Real Estate Corp (ACRE) stock to Neutral rating, as announced on July 19, 2024, according to Finviz. Earlier, on March 4, 2024, BofA Securities had reduced the stock from a Buy to Underperform, setting a price target of $7. for ACRE stock. UBS also initiated Neutral rating with a price target of $10.50. Additionally, JMP Securities reduced Mkt Perform rating on December 5, 2023. Wells Fargo analysts, in their report published on September 13, 2023, also initiated Equal Weight rating and set a price target of $10 for Ares Commercial Real Estate Corp’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.
Ares Commercial Real Estate Corp (ACRE) Stock Trading Recap
On Tuesday, Ares Commercial Real Estate Corp (ACRE) stock saw a modest uptick, ending the day at $7.06 which represents no change from the prior close of $7.06. The stock opened at $7.04 and touched a low of $6.93 during the day, reaching a high of $7.07. The volume of shares traded was 0.58 million exceeding the average volume of 0.50 million.
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ACRE Stock Performance and Moving Averages
In recent trading, Ares Commercial Real Estate Corp (ACRE) stock price has shown some volatility, fluctuating -1.26% over the last five trades and -4.47% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by -5.36%, and it has plunged by -0.84% in the previous three months. Currently, ACRE is trading at 2.27%, -0.81%, and -12.42% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.
As of the latest trading close, ACRE, a Real Estate sector stock, is trading -37.19% below its 52-week high but remains 11.01% above its 52-week low. The Average True Range (ATR) (14 days) of 0.19 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.
Ares Commercial Real Estate Corp’s Profitability and Valuation Ratios
Ares Commercial Real Estate Corp’s profitability metrics reveal strong financial health. The company currently boasts an operating margin of 53.38% and a profit margin of -38.66%, with a gross margin of -5.36%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.
In terms of valuation, Ares Commercial Real Estate Corp’s market capitalization stands at $384.91 million. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. The forward P/E ratio, which uses projected earnings for the next financial year, is 10.99. Additionally, the Price-to-Sales Ratio is 3.06, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 0.66, comparing the market value to the company’s book value.
Understanding Insider Trading
Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 6.83% of Ares Commercial Real Estate Corp (ACRE)’s shares, while financial institutions hold 44.74%.
Notable insider trades include Donohoe Bryan Patrick, Chief Executive Officer at Ares Commercial Real Estate Corp (ACRE), who sold 18868 shares on Jan 30 ’24, at $10.32 each, totaling $0.19 million.
