Is Ares Commercial Stock a Good Investment?
Ares Commercial Investment Advice | ACRE |
- Examine Ares Commercial's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Ares Commercial's leadership team and their track record. Good management can help Ares Commercial navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Mortgage Real Estate Investment Trusts (REITs) space and any emerging trends that could impact Ares Commercial's business and its evolving consumer preferences.
- Compare Ares Commercial's performance and market position to its competitors. Analyze how Ares Commercial is positioned in terms of product offerings, innovation, and market share.
- Check if Ares Commercial pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Ares Commercial's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Ares Commercial Real stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Ares Commercial Real is a good investment.
Sell | Buy |
Buy
Market Performance | Insignificant | Details | |
Volatility | Not too volatile | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Below Average | Details | |
Economic Sensitivity | Almost mirrors the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Hold | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Ares Commercial Stock
Researching Ares Commercial's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 44.0% of the company shares are held by institutions such as insurance companies. The company has price-to-book (P/B) ratio of 0.69. Some equities with similar Price to Book (P/B) outperform the market in the long run. Ares Commercial Real has Price/Earnings To Growth (PEG) ratio of 2.57. The entity recorded a loss per share of 1.18. The firm last dividend was issued on the 31st of December 2024.
To determine if Ares Commercial is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Ares Commercial's research are outlined below:
| The company reported the previous year's revenue of 1.1 M. Net Loss for the year was (38.87 M) with profit before overhead, payroll, taxes, and interest of 60.11 M. | |
| On 15th of October 2024 Ares Commercial paid $ 0.25 per share dividend to its current shareholders | |
| Latest headline from MacroaxisInsider: Acquisition by Caroline Blakely of 33 shares of Ares Commercial subject to Rule 16b-3 |
Ares Commercial Quarterly Cash And Short Term Investments |
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Ares Commercial uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Ares Commercial Real. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Ares Commercial's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 21st of February 2024 Upcoming Quarterly Report | View | |
| 7th of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 21st of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact Ares Commercial's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Ares Commercial's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2023-11-03 | 2023-09-30 | 0.19 | 0.17 | -0.02 | 10 | ||
2018-05-01 | 2018-03-31 | 0.3 | 0.33 | 0.03 | 10 | ||
2015-05-07 | 2015-03-31 | 0.22 | 0.25 | 0.03 | 13 | ||
2015-03-05 | 2014-12-31 | 0.28 | 0.31 | 0.03 | 10 | ||
2014-05-07 | 2014-03-31 | 0.2 | 0.17 | -0.03 | 15 | ||
2022-02-15 | 2021-12-31 | 0.37 | 0.41 | 0.04 | 10 | ||
2021-05-04 | 2021-03-31 | 0.36 | 0.4 | 0.04 | 11 | ||
2019-07-26 | 2019-06-30 | 0.34 | 0.38 | 0.04 | 11 |
Know Ares Commercial's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Ares Commercial is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Ares Commercial Real backward and forwards among themselves. Ares Commercial's institutional investor refers to the entity that pools money to purchase Ares Commercial's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Dana Investment Advisors Inc | 2024-09-30 | 488.5 K | Northern Trust Corp | 2024-09-30 | 457.5 K | Citadel Advisors Llc | 2024-06-30 | 366.8 K | Bi Asset Management Fondsmaeglerselskab A/s | 2024-09-30 | 320.8 K | Axs Investments Llc | 2024-09-30 | 258.3 K | Bank Of New York Mellon Corp | 2024-06-30 | 206.1 K | Knightsbridge Asset Management, Llc | 2024-06-30 | 184.4 K | Goldman Sachs Group Inc | 2024-06-30 | 154.3 K | Charles Schwab Investment Management Inc | 2024-09-30 | 150.2 K | Blackrock Inc | 2024-06-30 | 4.9 M | Vanguard Group Inc | 2024-09-30 | 3 M |
Ares Commercial's market capitalization trends
The company currently falls under 'Small-Cap' category with a current market capitalization of 388.89 M.Market Cap |
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Ares Commercial's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | (0.02) | (0.02) | |
| Return On Capital Employed | (0.06) | (0.05) | |
| Return On Assets | (0.02) | (0.02) | |
| Return On Equity | (0.06) | (0.06) |
Determining Ares Commercial's profitability involves analyzing its financial statements and using various financial metrics to determine if Ares Commercial is a good buy. For example, gross profit margin measures Ares Commercial's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Ares Commercial's profitability and make more informed investment decisions.
Please note, the presentation of Ares Commercial's financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Ares Commercial's management is honest, while the outside auditors are strict and uncompromising. Please utilize our Beneish M Score to check the likelihood of Ares Commercial's management manipulating its earnings.
Evaluate Ares Commercial's management efficiency
Ares Commercial Real has return on total asset (ROA) of (0.0296) % which means that it has lost $0.0296 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of (0.1023) %, meaning that it created substantial loss on money invested by shareholders. Ares Commercial's management efficiency ratios could be used to measure how well Ares Commercial manages its routine affairs as well as how well it operates its assets and liabilities. The current year's Return On Tangible Assets is expected to grow to -0.02. The current year's Return On Capital Employed is expected to grow to -0.05. At present, Ares Commercial's Total Current Assets are projected to increase significantly based on the last few years of reporting.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 11.53 | 17.93 | |
| Tangible Book Value Per Share | 11.53 | 17.26 | |
| Enterprise Value Over EBITDA | (176.60) | (167.77) | |
| Price Book Value Ratio | 0.90 | 0.66 | |
| Enterprise Value Multiple | (176.60) | (167.77) | |
| Price Fair Value | 0.90 | 0.66 | |
| Enterprise Value | 2.1 B | 2.2 B |
The strategic initiatives led by Ares Commercial's management are central to its market success. By analyzing these initiatives, we provide a clear picture of the stock's growth prospects.
Dividend Yield 0.1403 | Forward Dividend Yield 0.1403 | Forward Dividend Rate 1 | Beta 1.503 |
Basic technical analysis of Ares Stock
As of the 21st of November, Ares Commercial shows the risk adjusted performance of 0.0549, and Mean Deviation of 1.39. Ares Commercial Real technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Please confirm Ares Commercial Real downside deviation, treynor ratio, expected short fall, as well as the relationship between the variance and potential upside to decide if Ares Commercial Real is priced correctly, providing market reflects its regular price of 7.16 per share. Given that Ares Commercial has jensen alpha of 0.0427, we suggest you to validate Ares Commercial Real's prevailing market performance to make sure the company can sustain itself at a future point.Ares Commercial's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Ares Commercial insiders, such as employees or executives, is commonly permitted as long as it does not rely on Ares Commercial's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Ares Commercial insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Caroline Blakely 2 days ago Acquisition by Caroline Blakely of 33 shares of Ares Commercial subject to Rule 16b-3 | ||
Henderson James Alan over a month ago Disposition of 9500 shares by Henderson James Alan of Ares Commercial at 15.5316 subject to Rule 16b-3 | ||
Caroline Blakely over two months ago Acquisition by Caroline Blakely of 4556 shares of Ares Commercial subject to Rule 16b-3 | ||
Rebecca Parekh over two months ago Acquisition by Rebecca Parekh of 13842 shares of Ares Commercial subject to Rule 16b-3 | ||
Jeffrey Gonzales over two months ago Disposition of tradable shares by Jeffrey Gonzales of Ares Commercial subject to Rule 16b-3 | ||
Sykes Kirk over three months ago Acquisition by Sykes Kirk of 4461 shares of Ares Commercial subject to Rule 16b-3 | ||
Henderson James Alan over six months ago Disposition of 9500 shares by Henderson James Alan of Ares Commercial at 15.5316 subject to Rule 16b-3 | ||
James Skinner over a year ago Acquisition by James Skinner of 33 shares of Ares Commercial subject to Rule 16b-3 |
Ares Commercial's Outstanding Corporate Bonds
Ares Commercial issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Ares Commercial Real uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Ares bonds can be classified according to their maturity, which is the date when Ares Commercial Real has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| Dana 575 percent Corp BondUS235822AB96 | View | |
| Boeing Co 2196 Corp BondUS097023DG73 | View | |
| ARES 4125 30 JUN 51 Corp BondUS04018VAA17 | View | |
| US040133AA87 Corp BondUS040133AA87 | View | |
| MPLX LP 52 Corp BondUS55336VAL45 | View | |
| ARES CAPITAL PORATION Corp BondUS04010LBA08 | View | |
| ARES CAPITAL PORATION Corp BondUS04010LBB80 | View | |
| ARCC 32 15 NOV 31 Corp BondUS04010LBC63 | View |
Understand Ares Commercial's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Ares Commercial's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.0549 | |||
| Market Risk Adjusted Performance | 0.1404 | |||
| Mean Deviation | 1.39 | |||
| Semi Deviation | 1.68 | |||
| Downside Deviation | 1.84 | |||
| Coefficient Of Variation | 1553.63 | |||
| Standard Deviation | 2.08 | |||
| Variance | 4.33 | |||
| Information Ratio | 0.0185 | |||
| Jensen Alpha | 0.0427 | |||
| Total Risk Alpha | (0.11) | |||
| Sortino Ratio | 0.0209 | |||
| Treynor Ratio | 0.1304 | |||
| Maximum Drawdown | 13.22 | |||
| Value At Risk | (2.67) | |||
| Potential Upside | 2.88 | |||
| Downside Variance | 3.4 | |||
| Semi Variance | 2.84 | |||
| Expected Short fall | (1.52) | |||
| Skewness | 1.5 | |||
| Kurtosis | 7.83 |
| Risk Adjusted Performance | 0.0549 | |||
| Market Risk Adjusted Performance | 0.1404 | |||
| Mean Deviation | 1.39 | |||
| Semi Deviation | 1.68 | |||
| Downside Deviation | 1.84 | |||
| Coefficient Of Variation | 1553.63 | |||
| Standard Deviation | 2.08 | |||
| Variance | 4.33 | |||
| Information Ratio | 0.0185 | |||
| Jensen Alpha | 0.0427 | |||
| Total Risk Alpha | (0.11) | |||
| Sortino Ratio | 0.0209 | |||
| Treynor Ratio | 0.1304 | |||
| Maximum Drawdown | 13.22 | |||
| Value At Risk | (2.67) | |||
| Potential Upside | 2.88 | |||
| Downside Variance | 3.4 | |||
| Semi Variance | 2.84 | |||
| Expected Short fall | (1.52) | |||
| Skewness | 1.5 | |||
| Kurtosis | 7.83 |
Consider Ares Commercial's intraday indicators
Ares Commercial intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Ares Commercial stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Ares Commercial Corporate Filings
8K | 7th of November 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
F3 | 3rd of September 2024 The report used by insiders such as officers, directors, and major shareholders (beneficial owners holding more than 10% of any class of the company's equity securities) to declare their ownership of a company's stock | ViewVerify |
| 5th of June 2024 Other Reports | ViewVerify | |
F4 | 6th of May 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
Ares Stock media impact
Far too much social signal, news, headlines, and media speculation about Ares Commercial that are available to investors today. That information is available publicly through Ares media outlets and privately through word of mouth or via Ares internal channels. However, regardless of the origin, that massive amount of Ares data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Ares Commercial news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Ares Commercial relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Ares Commercial's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Ares Commercial alpha.
Ares Commercial Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Ares Commercial can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Ares Commercial Corporate Directors
| James Skinner | Independent Director | Profile | |
| Rand April | Independent Director | Profile | |
| Michael Arougheti | Non-Executive Director | Profile | |
| Caroline Blakely | Lead Independent Director | Profile |
Already Invested in Ares Commercial Real?
The danger of trading Ares Commercial Real is mainly related to its market volatility and Company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of Ares Commercial is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than Ares Commercial. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile Ares Commercial Real is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.
When determining whether Ares Commercial Real is a strong investment it is important to analyze Ares Commercial's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Ares Commercial's future performance. For an informed investment choice regarding Ares Stock, refer to the following important reports: Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Ares Commercial Real. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in metropolitan statistical area. You can also try the Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Is Mortgage Real Estate Investment Trusts (REITs) space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Ares Commercial. If investors know Ares will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Ares Commercial listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 15.981 | Dividend Share 1.08 | Earnings Share (1.18) | Revenue Per Share 0.725 | Quarterly Revenue Growth (0.56) |
The market value of Ares Commercial Real is measured differently than its book value, which is the value of Ares that is recorded on the company's balance sheet. Investors also form their own opinion of Ares Commercial's value that differs from its market value or its book value, called intrinsic value, which is Ares Commercial's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Ares Commercial's market value can be influenced by many factors that don't directly affect Ares Commercial's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Ares Commercial's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Ares Commercial is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Ares Commercial's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.