Arbor Realty Trust Inc. (NYSE:
ABR) is one of the
most shorted stocks right now. Arbor continues to face elevated delinquencies and the pressure of higher interest rates, which have slowed loan originations and weighed on earnings. These challenges remain at the core of short-seller concerns. They are also evident in the cautious consensus ratings, where 50% of analysts have a Sell rating, and only one-quarter recommend a Buy.
Among the positive analysts is Citizens JMP’s Steven Delaney, who reaffirmed an Outperform rating on Arbor Realty Trust Inc. (NYSE:ABR) on August 19. However, he lowered his price target to $13, down from $13.50 previously. While the broader market remains cautious on the stock, Delaney argued that the company is making an effort to improve its credit quality and non-performing loan book. He also notes that, as evidence of the success of its recent measures, the company is witnessing progress in its other lines of business.
In line with these efforts, Arbor Realty Trust Inc. (NYSE:ABR) closed a $1.05 billion commercial real estate mortgage loan securitization on August 12. This move was aimed at enhancing liquidity by freeing up credit lines and allowing reinvestment in new loans.
This deal highlights Arbor’s ability to manage risks and short-term liquidity. However, it does not fully address longer-term concerns regarding leverage and credit quality, particularly in a weakening commercial real estate market. Thus, Arbor Realty Trust Inc. (NYSE:ABR) still has considerable ground to cover.
Arbor Realty Trust Inc. (NYSE:ABR) is a real estate investment trust (REIT) that specializes in structured finance for the multifamily and commercial real estate sectors.
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Disclosure: None. This article is originally published at
Insider Monkey.
