Apollo Commercial Real Estate Finance (NYSE:ARI) Posts Earnings Results, Misses Expectations By $2.73 EPS

Apollo Commercial Real Estate Finance (NYSE:ARI) announced its quarterly earnings results on Monday. The real estate investment trust reported ($2.62) earnings per share for the quarter, missing the consensus estimate of $0.11 by ($2.73), FiscalAI reports. The firm had revenue of $44.38 million for the quarter, compared to the consensus estimate of $34.70 million. Apollo Commercial Real Estate Finance had a net margin of 48.01% and a return on equity of 7.87%.

Apollo Commercial Real Estate Finance Stock Performance

Shares of ARI traded down $0.09 during trading hours on Monday, hitting $6.67. The stock had a trading volume of 2,284,838 shares, compared to its average volume of 2,410,166. The firm has a market capitalization of $872.17 million, a PE ratio of 8.23 and a beta of 1.36. The company has a debt-to-equity ratio of 0.68, a current ratio of 81.81 and a quick ratio of 81.80. Apollo Commercial Real Estate Finance has a 12 month low of $6.43 and a 12 month high of $11.24. The stock has a fifty day moving average price of $9.34 and a 200 day moving average price of $10.22.

Apollo Commercial Real Estate Finance Increases Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, July 15th. Stockholders of record on Tuesday, June 30th were paid a $3.75 dividend. This is an increase from Apollo Commercial Real Estate Finance’s previous quarterly dividend of $0.25. This represents a $15.00 dividend on an annualized basis and a dividend yield of 224.9%. Apollo Commercial Real Estate Finance’s dividend payout ratio (DPR) is 123.46%.

Insider Transactions at Apollo Commercial Real Estate Finance

In other news, Director Carmencita N.M. Whonder sold 4,574 shares of the stock in a transaction that occurred on Wednesday, May 13th. The shares were sold at an average price of $10.93, for a total value of $49,993.82. Following the transaction, the director owned 24,799 shares in the company, valued at $271,053.07. This represents a 15.57% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Insiders own 0.52% of the company’s stock.

Hedge Funds Weigh In On Apollo Commercial Real Estate Finance

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Franklin Resources Inc. grew its holdings in Apollo Commercial Real Estate Finance by 36.0% during the fourth quarter. Franklin Resources Inc. now owns 15,229 shares of the real estate investment trust’s stock valued at $147,000 after purchasing an additional 4,032 shares during the period. CIBC Bancorp USA Inc. purchased a new stake in Apollo Commercial Real Estate Finance in the third quarter worth about $151,000. Abel Hall LLC bought a new position in shares of Apollo Commercial Real Estate Finance in the third quarter worth about $122,000. Zacks Investment Management bought a new position in shares of Apollo Commercial Real Estate Finance in the third quarter worth about $126,000. Finally, Tower Research Capital LLC TRC lifted its position in shares of Apollo Commercial Real Estate Finance by 310.3% during the 2nd quarter. Tower Research Capital LLC TRC now owns 14,411 shares of the real estate investment trust’s stock valued at $139,000 after buying an additional 10,899 shares in the last quarter. Hedge funds and other institutional investors own 54.43% of the company’s stock.

Analysts Set New Price Targets

Several equities analysts recently issued reports on the company. Wall Street Zen cut Apollo Commercial Real Estate Finance from a “hold” rating to a “sell” rating in a research report on Saturday, May 2nd. Zacks Research lowered Apollo Commercial Real Estate Finance from a “hold” rating to a “strong sell” rating in a report on Monday, August 3rd. BTIG Research cut Apollo Commercial Real Estate Finance from a “buy” rating to a “neutral” rating in a research note on Thursday, June 25th. Bank of America initiated coverage on Apollo Commercial Real Estate Finance in a report on Tuesday, May 5th. They set a “neutral” rating and a $11.50 price target on the stock. Finally, Weiss Ratings cut Apollo Commercial Real Estate Finance from a “hold (c-)” rating to a “sell (d+)” rating in a research report on Thursday, July 30th. Two research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average price target of $11.33.

Apollo Commercial Real Estate Finance Company Profile

Apollo Commercial Real Estate Finance, Inc (NYSE: ARI) is a real estate finance company structured as a real estate investment trust (REIT). The company focuses on originating, acquiring and managing a diversified portfolio of commercial real estate debt and preferred equity investments. As an externally managed vehicle, ARI leverages the expertise and resources of an affiliate of Apollo Global Management, a leading global alternative investment manager.

ARI’s investment strategy is centered on providing first mortgage loans, mezzanine debt financing, bridge loans and preferred equity across a broad range of property types, including office, retail, industrial and multifamily assets.