ARI

UBS Initiates Coverage of Apollo Commercial Real Estate Finance (ARI) with Neutral Recommendation

Fintel reports that on December 6, 2023, UBS initiated coverage of Apollo Commercial Real Estate Finance (NYSE:ARI) with a Neutral recommendation.

Analyst Price Forecast Suggests 6.49% Downside

As of November 27, 2023, the average one-year price target for Apollo Commercial Real Estate Finance is 10.37. The forecasts range from a low of 10.10 to a high of $11.02. The average price target represents a decrease of 6.49% from its latest reported closing price of 11.09.

See our leaderboard of companies with the largest price target upside.

The projected annual revenue for Apollo Commercial Real Estate Finance is 310MM, an increase of 16.15%. The projected annual non-GAAP EPS is 1.51.

Apollo Commercial Real Estate Finance Declares $0.35 Dividend

On September 12, 2023 the company declared a regular quarterly dividend of $0.35 per share ($1.40 annualized). Shareholders of record as of September 29, 2023 received the payment on October 13, 2023. Previously, the company paid $0.35 per share.

At the current share price of $11.09 / share, the stock's dividend yield is 12.62%.

Looking back five years and taking a sample every week, the average dividend yield has been 12.10%, the lowest has been 8.46%, and the highest has been 30.82%. The standard deviation of yields is 3.39 (n=236).

The current dividend yield is 0.15 standard deviations above the historical average.

Additionally, the company's dividend payout ratio is 26.04. 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 has not increased its dividend in the last three years.

What is the Fund Sentiment?

There are 439 funds or institutions reporting positions in Apollo Commercial Real Estate Finance. This is a decrease of 2 owner(s) or 0.45% in the last quarter. Average portfolio weight of all funds dedicated to ARI is 0.11%, an increase of 12.87%. Total shares owned by institutions increased in the last three months by 1.16% to 85,962K shares. ARI / Apollo Commercial Real Estate Finance Inc Put/Call Ratios The put/call ratio of ARI is 1.86, indicating a bearish outlook.

What are Other Shareholders Doing?

ARI / Apollo Commercial Real Estate Finance Inc Shares Held by Institutions

IJR - iShares Core S&P Small-Cap ETF holds 8,782K shares representing 6.21% ownership of the company. In it's prior filing, the firm reported owning 9,164K shares, representing a decrease of 4.34%. The firm decreased its portfolio allocation in ARI by 11.03% over the last quarter.

VTSMX - Vanguard Total Stock Market Index Fund Investor Shares holds 4,374K shares representing 3.09% ownership of the company. In it's prior filing, the firm reported owning 4,347K shares, representing an increase of 0.62%. The firm decreased its portfolio allocation in ARI by 6.54% over the last quarter.

NAESX - Vanguard Small-Cap Index Fund Investor Shares holds 3,645K shares representing 2.58% ownership of the company. In it's prior filing, the firm reported owning 3,649K shares, representing a decrease of 0.10%. The firm decreased its portfolio allocation in ARI by 6.27% over the last quarter.

IWM - iShares Russell 2000 ETF holds 3,312K shares representing 2.34% ownership of the company. In it's prior filing, the firm reported owning 3,208K shares, representing an increase of 3.14%. The firm decreased its portfolio allocation in ARI by 3.35% over the last quarter.

Geode Capital Management holds 2,801K shares representing 1.98% ownership of the company. In it's prior filing, the firm reported owning 2,688K shares, representing an increase of 4.02%. The firm decreased its portfolio allocation in ARI by 5.49% 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.

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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.

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