Demystifying Ares Comml Real Est: Insights From 4 Analyst Reviews

4 analysts have expressed a variety of opinions on Ares Comml Real Est ACRE over the past quarter, offering a diverse set of opinions from bullish to bearish.

The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.

Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $8.38, with a high estimate of $10.50 and a low estimate of $7.00. A negative shift in sentiment is evident as analysts have decreased the average price target by 18.24%.

Investigating Analyst Ratings: An Elaborate Study

A clear picture of Ares Comml Real Est's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Ares Comml Real Est. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Ares Comml Real Est compared to the broader market.
• Price Targets: Delving into movements, analysts provide estimates for the future value of Ares Comml Real Est's stock. This analysis reveals shifts in analysts' expectations over time.

To gain a panoramic view of Ares Comml Real Est's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.

Stay up to date on Ares Comml Real Est analyst ratings.

If you are interested in following small-cap stock news and performance you can start by tracking it here.

Unveiling the Story Behind Ares Comml Real Est

Ares Commercial Real Estate Corp is a specialty finance company and a Real Estate Investment Trust providing commercial real estate loans and related investments. It operates in one segment namely originating and managing a diversified portfolio of CRE debt-related investments. The group recognizes its revenues through the interest income it receives from loans.

Breaking Down Ares Comml Real Est's Financial Performance

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

Revenue Challenges: Ares Comml Real Est's revenue growth over 3 months faced difficulties. As of 31 December, 2023, the company experienced a decline of approximately -45.55%. This indicates a decrease in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Financials sector.

Net Margin: Ares Comml Real Est's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of -238.04%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Ares Comml Real Est's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of -6.02%, the company may face hurdles in achieving optimal financial returns.

Return on Assets (ROA): Ares Comml Real Est's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of -1.7%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: Ares Comml Real Est's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 2.58.

The Significance of Analyst Ratings Explained

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.

This article was generated by Benzinga's automated content engine and reviewed by an editor.