Fintel reports that on July 24, 2023, JP Morgan downgraded their outlook for Arbor Realty Trust (NYSE:ABR) from Neutral to Underweight.

Analyst Price Forecast Suggests 5.03% Downside

As of July 6, 2023, the average one-year price target for Arbor Realty Trust is 15.71. The forecasts range from a low of 12.62 to a high of $18.38. The average price target represents a decrease of 5.03% from its latest reported closing price of 16.54.

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

The projected annual revenue for Arbor Realty Trust is 381MM, a decrease of 43.82%. The projected annual non-GAAP EPS is 1.43.

Arbor Realty Trust Declares $0.42 Dividend

On May 5, 2023 the company declared a regular quarterly dividend of $0.42 per share ($1.68 annualized). Shareholders of record as of May 19, 2023 received the payment on May 31, 2023. Previously, the company paid $0.40 per share.

At the current share price of $16.54 / share, the stock’s dividend yield is 10.16%.

Looking back five years and taking a sample every week, the average dividend yield has been 9.96%, the lowest has been 6.95%, and the highest has been 28.10%. The standard deviation of yields is 2.86 (n=236).

The current dividend yield is 0.07 standard deviations above the historical average.

Additionally, the company’s dividend payout ratio is 0.88. 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’s 3-Year dividend growth rate is 0.40%, demonstrating that it has increased its dividend over time.

What is the Fund Sentiment?

There are 479 funds or institutions reporting positions in Arbor Realty Trust. This is an increase of 16 owner(s) or 3.46% in the last quarter. Average portfolio weight of all funds dedicated to ABR is 0.11%, a decrease of 12.32%. Total shares owned by institutions increased in the last three months by 17.05% to 88,420K shares. The put/call ratio of ABR is 2.94, indicating a bearish outlook.

What are Other Shareholders Doing?

VTSMX – Vanguard Total Stock Market Index Fund Investor Shares holds 4,993K shares representing 2.76% ownership of the company. In it’s prior filing, the firm reported owning 4,872K shares, representing an increase of 2.42%. The firm decreased its portfolio allocation in ABR by 17.57% over the last quarter.

Millennium Management holds 4,702K shares representing 2.60% ownership of the company. In it’s prior filing, the firm reported owning 2,180K shares, representing an increase of 53.64%. The firm increased its portfolio allocation in ABR by 94.76% over the last quarter.

NAESX – Vanguard Small-Cap Index Fund Investor Shares holds 4,238K shares representing 2.34% ownership of the company. In it’s prior filing, the firm reported owning 4,198K shares, representing an increase of 0.94%. The firm decreased its portfolio allocation in ABR by 15.60% over the last quarter.

IWM – iShares Russell 2000 ETF holds 3,568K shares representing 1.97% ownership of the company. In it’s prior filing, the firm reported owning 3,782K shares, representing a decrease of 6.00%. The firm decreased its portfolio allocation in ABR by 14.14% over the last quarter.

Geode Capital Management holds 3,210K shares representing 1.77% ownership of the company. In it’s prior filing, the firm reported owning 3,105K shares, representing an increase of 3.29%. The firm decreased its portfolio allocation in ABR by 16.65% over the last quarter.

Arbor Realty Trust Background Information
(This description is provided by the company.)

Arbor Realty Trust, Inc. is a nationwide real estate investment trust and direct lender, providing loan origination and servicing for multifamily, seniors housing, healthcare and other diverse commercial real estate assets. Headquartered in New York, Arbor manages a multibillion- dollar servicing portfolio, specializing in government-sponsored enterprise products. Arbor is a Fannie Mae DUS®lender and Freddie Mac OptigoSeller/Servicer. Arbor’s product platform also includes CMBS, bridge, mezzanine and preferred equitylending. Rated by Standard and Poor’s and Fitch Ratings, Arbor is committed to building on its reputation for service, quality and customized solutions with an unparalleled dedication to providing our clients excellence over the entire life of a loan.

This article originally appeared on Fintel

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