Fintel reports that on April 24, 2023, JP Morgan maintained coverage of Apollo Commercial Real Estate Finance (NYSE:ARI) with a Underweight recommendation.
Analyst Price Forecast Suggests 27.32% Upside
As of April 6, 2023, the average one-year price target for Apollo Commercial Real Estate Finance is 12.07. The forecasts range from a low of 11.62 to a high of $12.60. The average price target represents an increase of 27.32% from its latest reported closing price of 9.48.
See our leaderboard of companies with the largest price target upside.
The projected annual revenue for Apollo Commercial Real Estate Finance is 310MM, a decrease of 3.43%. The projected annual non-GAAP EPS is 1.51.
Apollo Commercial Real Estate Finance Declares $0.35 Dividend
On March 14, 2023 the company declared a regular quarterly dividend of $0.35 per share ($1.40 annualized). Shareholders of record as of March 31, 2023 received the payment on April 14, 2023. Previously, the company paid $0.35 per share.
At the current share price of $9.48 / share, the stock's dividend yield is 14.77%.
Looking back five years and taking a sample every week, the average dividend yield has been 11.66%, the lowest has been 8.46%, and the highest has been 30.82%. The standard deviation of yields is 3.41 (n=236).
The current dividend yield is 0.91 standard deviations above the historical average.
Additionally, the company's dividend payout ratio is 0.75. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.
The company's 3-Year dividend growth rate is -0.24%.
What is the Fund Sentiment?
There are 462 funds or institutions reporting positions in Apollo Commercial Real Estate Finance. This is an increase of 20 owner(s) or 4.52% in the last quarter. Average portfolio weight of all funds dedicated to ARI is 0.11%, an increase of 8.43%. Total shares owned by institutions increased in the last three months by 0.57% to 88,292K shares. 
The put/call ratio of ARI is 8.43, indicating a bearish outlook.
What are Other Shareholders Doing?
IJR - iShares Core S&P Small-Cap ETF holds 9,585K shares representing 6.79% ownership of the company. In it's prior filing, the firm reported owning 9,463K shares, representing an increase of 1.28%. The firm increased its portfolio allocation in ARI by 19.46% over the last quarter.
VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 4,320K shares representing 3.06% ownership of the company. In it's prior filing, the firm reported owning 4,261K shares, representing an increase of 1.38%. The firm increased its portfolio allocation in ARI by 21.39% over the last quarter.
NAESX - Vanguard Small-Cap Index Fund Investor Shares holds 3,622K shares representing 2.56% ownership of the company. In it's prior filing, the firm reported owning 3,566K shares, representing an increase of 1.54%. The firm increased its portfolio allocation in ARI by 21.90% over the last quarter.
IWM - iShares Russell 2000 ETF holds 3,228K shares representing 2.28% ownership of the company. In it's prior filing, the firm reported owning 3,109K shares, representing an increase of 3.67%. The firm increased its portfolio allocation in ARI by 21.88% over the last quarter.
Allspring Global Investments Holdings holds 3,014K shares representing 2.13% ownership of the company. In it's prior filing, the firm reported owning 3,000K shares, representing an increase of 0.49%. The firm decreased its portfolio allocation in ARI by 18.72% over the last quarter.
Apollo Commercial Real Estate Finance Background Information
(This description is provided by the company.)
Apollo Commercial Real Estate Finance, Inc. (NYSE: ARI) is a real estate investment trust that primarily originates, acquires, invests in and manages performing commercial first mortgage loans, subordinate financings and other commercial real estate-related debt investments. The Company is externally managed and advised by ACREFI Management, LLC, a Delaware limited liability company and an indirect subsidiary of Apollo Global Management, Inc., a leading global alternative investment manager with approximately $433 billion of assets under management at September 30, 2020.
This story originally appeared on Fintel.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
