Ares Commercial (NYSE:ACRE) Real Estate Corp (NYSE:ACRE) CEO Bryan Patrick Donohoe has recently increased his stake in the company, according to a new SEC filing. Donohoe purchased 3,509 shares of Ares Commercial Real Estate Corp 's common stock at a price of $14.325 per share, investing a total of approximately $50,266.
This move by the company's Chief Executive Officer comes as a notable transaction, reflecting a vote of confidence in the real estate investment trust's future prospects. With this acquisition, Donohoe's ownership in the company has risen to 41,259 shares. It's important to note that this figure includes 37,750 restricted stock units that are part of the company's Amended and Restated 2012 Equity Incentive Plan, which vest according to the terms of the applicable award agreement.
The transaction, dated March 10, 2020, was disclosed in a Form 4 filing with the Securities and Exchange Commission on April 4, 2024. Investors often view purchases of stock by company insiders as a positive sign that leadership is bullish on the company's current valuation and future performance.
Ares Commercial Real Estate Corp, listed on the New York Stock Exchange, is a specialty finance company primarily engaged in originating and investing in commercial real estate loans and related investments. The company's activities are managed by a subsidiary of Ares Management (NYSE:ARES) Corporation, a leading global alternative asset manager.
Investors and market watchers alike pay close attention to insider transactions such as this one, as they may provide valuable insights into the company's internal expectations and strategic direction.
InvestingPro Insights
Amid recent insider stock purchases by Ares Commercial Real Estate Corp's (NYSE:ACRE) CEO, the company presents a mixed financial landscape according to InvestingPro data. With a market capitalization of approximately $390.51 million, ACRE's performance metrics have shown some concerning signals. The company's Price/Earnings (P/E) Ratio stands at a negative -10.03, and when adjusted for the last twelve months as of Q4 2023, it further declines to -14.18, indicating potential earnings challenges ahead.
Despite the CEO's confidence as exhibited by the recent stock acquisition, ACRE's revenue has experienced a significant decline, with a staggering -98.17% drop in the last twelve months as of Q4 2023. This is further accentuated by a quarterly revenue growth rate of -371.65% for Q4 2023. Nonetheless, the company's dividend yield remains substantial at 14.21%, reflecting ACRE's commitment to returning value to shareholders, a commitment that has been consistent over the past 13 years.
InvestingPro Tips highlight several points of interest for potential investors. Analysts have revised their earnings expectations downwards for the upcoming period, indicating caution. Additionally, the company is trading near its 52-week low and has seen its price fall significantly over the last three months. However, ACRE has maintained its significant dividend payments to shareholders and holds liquid assets that exceed short-term obligations, suggesting a level of financial stability in the face of its revenue declines.
For those considering an investment in Ares Commercial Real Estate Corp, additional InvestingPro Tips are available, providing deeper insights into the company's financial health and market position. With 9 more tips to explore, investors can make a more informed decision by visiting https://www.investing.com/pro/ACRE. Don't forget to use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking further exclusive analysis and data.
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