Apollo Commercial Real Estate Finance Surpasses Analyst Target Price
Recently, shares of Apollo Commercial Real Estate Finance Inc. (Symbol: ARI) exceeded the average analyst 12-month target price of $9.50, trading at $9.52 per share. Analysts typically respond in two ways when a stock reaches their target: they either downgrade the stock based on valuation or adjust their target price higher. Analyst responses may vary based on fundamental business developments that drive stock prices — if the company shows promise, a higher target could be warranted.
There are five different analyst targets within the Zacks coverage universe contributing to the average for Apollo Commercial Real Estate Finance Inc. However, it’s important to note that this average is a statistical calculation. Some analysts have set lower targets, including one predicting a price of $8.00. Conversely, one analyst has set a target as high as $11.00, with a standard deviation of $1.118.
The primary reason to consider the average ARI price target is to leverage a “wisdom of crowds” approach. It aggregates insights from various analysts, rather than reflecting the opinion of a single expert. With ARI now above the average target price of $9.50 per share, it signals to investors the need to evaluate the company’s current situation and decide if this price is merely a stepping stone to a higher target or if the valuation has reached a point where selling might be prudent.
| Recent ARI Analyst Ratings Breakdown | ||||
|---|---|---|---|---|
| » | Current | 1 Month Ago | 2 Months Ago | 3 Months Ago |
| Strong buy ratings: | 1 | 0 | 0 | 0 |
| Buy ratings: | 1 | 0 | 0 | 0 |
| Hold ratings: | 3 | 6 | 6 | 6 |
| Sell ratings: | 1 | 1 | 1 | 1 |
| Strong sell ratings: | 0 | 0 | 0 | 0 |
| Average rating: | 2.67 | 3.14 | 3.14 | 3.14 |
The average rating shown in the last row of the table rates from 1 to 5, with 1 being a Strong Buy and 5 a Strong Sell. This article compiled its data with assistance from Zacks Investment Research via Quandl.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.