What Happened?
Shares of real estate investment trust Arbor Realty Trust (NYSE: ABR) fell 15% in the afternoon session after the company reported disappointing third-quarter 2025 results that missed Wall Street's top-line expectations. The company generated revenue of $112.4 million, a 28.2% year-over-year decline and well below analysts' consensus estimate of $151.4 million. The miss was even more pronounced in its core lending operations, as net interest income plummeted 56.9% from the prior year to $38.27 million, falling 47% short of expectations. While Arbor's GAAP earnings of $0.20 per share narrowly beat forecasts, the figure was down significantly from $0.31 in the same quarter last year. Overall, the market's sharp negative reaction suggested investors were focused on the steep deterioration in revenue and income rather than the minor earnings beat.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Arbor Realty Trust? Access our full analysis report here.
What Is The Market Telling Us
Arbor Realty Trust’s shares are not very volatile and have only had 6 moves greater than 5% over the last year. Moves this big are rare for Arbor Realty Trust and indicate this news significantly impacted the market’s perception of the business.
The biggest move we wrote about over the last year was 2 months ago when the stock gained 4.4% on the news that the major indices rebounded, as Fed Chair Jerome Powell delivered dovish remarks at the much-awaited Jackson Hole symposium. Powell suggested that with inflation risks moderating and unemployment remaining low, the Federal Reserve might consider a shift in its monetary policy stance, including potential interest rate cuts. This outlook eased market concerns about prolonged high interest rates and their impact on economic growth. The prospect of lower borrowing costs bolstered investor confidence, particularly in sectors that have lagged, leading to a broad rally across the market.
Arbor Realty Trust is down 29.2% since the beginning of the year, and at $9.76 per share, it is trading 37.6% below its 52-week high of $15.64 from November 2024. Investors who bought $1,000 worth of Arbor Realty Trust’s shares 5 years ago would now be looking at an investment worth $764.87.
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