ACRES Commercial Realty Corp. (NYSE: ACR) experienced a significant increase in short interest during December 2023, rising by 37.3%. As of December 31, the total number of shorted shares reached 185,430, up from 135,007 shares on December 15. This uptick indicates growing bearish sentiment among investors, with 2.6% of the company’s shares currently sold short. Given the average daily trading volume of 52,298 shares, the short-interest ratio stands at 3.5 days.
During trading on Monday, ACRES Commercial Realty’s stock fell by $0.27, closing at $20.33. The trading volume was 12,203 shares, significantly lower than the average of 29,137 shares. The stock’s performance over the past year ranges from a low of $15.64 to a high of $24.61. With a market capitalization of $148.17 million, the company maintains a price-to-earnings ratio of 21.17 and a beta of 1.19. The moving averages indicate that the fifty-day average is $21.72 and the two-hundred-day average is $20.59.
Stock Buyback Program and Institutional Investment Activity
In a move to enhance shareholder value, ACRES Commercial Realty announced a stock buyback program on October 29, which allows the company to repurchase up to $7.50 million worth of its shares. This buyback represents approximately 5.3% of the company’s stock, suggesting confidence from the board in the stock’s current valuation.
Institutional investors have also been active regarding ACRES Commercial Realty. Notably, BNP Paribas Financial Markets increased its holdings by 120.2% in the third quarter, now owning 1,354 shares valued at $29,000. Other institutions, such as JPMorgan Chase & Co. and MIRAE ASSET GLOBAL ETFs HOLDINGS Ltd., have also acquired new positions, with JPMorgan investing approximately $52,000 and MIRAE investing around $60,000. Collectively, institutional investors and hedge funds own 40.03% of the company’s stock.
Analyst Ratings and Market Outlook
Recent evaluations from various brokerages indicate a cautiously optimistic outlook for ACRES Commercial Realty. Citizens JMP raised its target price from $23.50 to $24.50, assigning a “market outperform” rating on October 31. Citigroup echoed this sentiment with an “outperform” rating, while Weiss Ratings maintained a “hold (c)” rating.
MarketBeat.com reports a consensus rating of “Moderate Buy” among analysts, with an average target price also set at $24.50. Three analysts currently recommend a buy rating, while another three suggest holding the stock.
ACRES Commercial Realty Corp. operates as a real estate investment trust (REIT) focused on the origination, holding, and management of commercial real estate mortgage loans and equity investments in properties across the United States. The company invests in a variety of commercial real estate-related assets, including floating-rate first mortgage loans and mezzanine financing.
The recent developments surrounding ACRES Commercial Realty underscore a dynamic market environment, reflecting both investor sentiment and broader economic trends. The company’s efforts to enhance shareholder value, in conjunction with institutional interest and favorable analyst ratings, may position it for future growth in a competitive landscape.
