Apollo Commercial Real Estate Finance Inc (NYSE: ARI) has seen a decline in its stock price by -5.00 in relation to its previous close of 11.19. However, the company has experienced a -3.01% decline in its stock price over the last five trading sessions. Seeking Alpha reported 2024-04-08 that I think that REITs are today offering a historic opportunity. But that does not mean that all REITs are good investments. I discuss 5 categories of REITs to avoid at all cost.
Is It Worth Investing in Apollo Commercial Real Estate Finance Inc (NYSE: ARI) Right Now?
The price-to-earnings ratio for Apollo Commercial Real Estate Finance Inc (NYSE: ARI) is 36.22x, which is above its average ratio. Moreover, the 36-month beta value for ARI is 1.71. Analysts have varying opinions on the stock, with 1 analysts rating it as a “buy,” 0 as “overweight,” 5 as “hold,” and 0 as “sell.”
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The public float for ARI is 140.20M and currently, short sellers hold a 2.34% of that float. On April 11, 2024, ARI’s average trading volume was 808.41K shares.
ARI’s Market Performance
ARI stock saw a decrease of -3.01% in the past week, with a monthly decline of -3.89% and a quarterly a decrease of -9.07%. The volatility ratio for the week is 1.79%, and the volatility levels for the last 30 days are 2.16% for Apollo Commercial Real Estate Finance Inc (ARI). The simple moving average for the last 20 days is -4.31% for ARI stock, with a simple moving average of -2.85% for the last 200 days.
Analysts’ Opinion of ARI
Many brokerage firms have already submitted their reports for ARI stocks, with BofA Securities repeating the rating for ARI by listing it as a “Underperform.” The predicted price for ARI in the upcoming period, according to BofA Securities is $10.50 based on the research report published on March 04, 2024 of the current year 2024.
UBS, on the other hand, stated in their research note that they expect to see ARI reach a price target of $10.50. The rating they have provided for ARI stocks is “Neutral” according to the report published on December 06th, 2023.
JP Morgan gave a rating of “Neutral” to ARI, setting the target price at $10.50 in the report published on August 02nd of the previous year.
ARI Trading at -3.65% from the 50-Day Moving Average
After a stumble in the market that brought ARI to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -16.56% of loss for the given period.
Volatility was left at 2.16%, however, over the last 30 days, the volatility rate increased by 1.79%, as shares sank -3.36% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -10.75% lower at present.
During the last 5 trading sessions, ARI fell by -3.01%, which changed the moving average for the period of 200-days by -0.93% in comparison to the 20-day moving average, which settled at $11.09. In addition, Apollo Commercial Real Estate Finance Inc saw -9.45% in overturn over a single year, with a tendency to cut further losses.
Insider Trading
Reports are indicating that there were more than several insider trading activities at ARI starting from ROTHSTEIN STUART, who sale 40,000 shares at the price of $11.45 back on Jan 16 ’24. After this action, ROTHSTEIN STUART now owns 541,675 shares of Apollo Commercial Real Estate Finance Inc, valued at $458,192 using the latest closing price.
ROTHSTEIN STUART, the President & CEO of Apollo Commercial Real Estate Finance Inc, sale 40,000 shares at $10.09 during a trade that took place back on Oct 16 ’23, which means that ROTHSTEIN STUART is holding 490,766 shares at $403,564 based on the most recent closing price.
Stock Fundamentals for ARI
Current profitability levels for the company are sitting at:
- -0.16 for the present operating margin
- 0.7 for the gross margin
The net margin for Apollo Commercial Real Estate Finance Inc stands at 0.01. The total capital return value is set at -0.01. Equity return is now at value 2.36, with 0.57 for asset returns.
Based on Apollo Commercial Real Estate Finance Inc (ARI), the company’s capital structure generated 0.76 points at debt to capital in total, while cash flow to debt ratio is standing at 0.04. The debt to equity ratio resting at 3.15. The interest coverage ratio of the stock is -0.19.
Currently, EBITDA for the company is -416.67 million with net debt to EBITDA at -187.1. When we switch over and look at the enterprise to sales, we see a ratio of 30.6. The receivables turnover for the company is 3.72for trailing twelve months and the total asset turnover is 0.03.
Conclusion
To wrap up, the performance of Apollo Commercial Real Estate Finance Inc (ARI) has been bad in recent times. The stock has received a mixed of “buy” and “hold” ratings from analysts. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.