ACRES Commercial Realty Corp. (NYSE: ACR) experienced a significant increase in short interest during December 2023. As of December 31, short interest reached a total of 185,430 shares, a rise of 37.3% from the 135,007 shares reported on December 15. This surge indicates a growing bearish sentiment among investors, with approximately 2.6% of the company’s shares currently sold short. Based on an average daily volume of 52,298 shares, the short-interest ratio stands at 3.5 days.
Market Performance and Stock Buyback Initiatives
On Monday, ACRES Commercial Realty’s stock traded down by $0.27, closing at $20.33. The trading volume was 12,203 shares, notably lower than its average volume of 29,137 shares. The stock has fluctuated significantly over the past year, with a low of $15.64 and a high of $24.61. The current market capitalization of the company is approximately $148.17 million, with a price-to-earnings ratio of 21.17 and a beta of 1.19.
In a strategic move, ACRES Commercial Realty announced a stock buyback program on October 29, 2023. The program authorizes the repurchase of up to $7.50 million in shares, equating to about 5.3% of the company’s stock. Such buyback initiatives often suggest that a company’s board of directors perceives its stock as undervalued.
Investor Changes and Analyst Ratings
Institutional investors have been actively adjusting their positions in ACRES Commercial Realty. For instance, BNP Paribas Financial Markets increased its holdings by 120.2% in the third quarter, now owning 1,354 shares valued at approximately $29,000. Other notable changes include JPMorgan Chase & Co. acquiring a new position worth about $52,000 and Bank of America Corp DE boosting its holdings by 110.4% in the same period, bringing its total to 3,671 shares valued at $66,000. Currently, institutional investors and hedge funds collectively own 40.03% of the stock.
Brokerage firms have also been weighing in on ACRES Commercial Realty’s potential. Citizens JMP raised its target price from $23.50 to $24.50 on October 31, 2023, rating the stock as “market outperform.” Citigroup reiterated an “outperform” rating on the same day, while Weiss Ratings maintained a “hold (c)” rating on December 29, 2023. According to MarketBeat.com, analysts currently have a consensus rating of “Moderate Buy” with an average target price of $24.50.
ACRES Commercial Realty operates as a real estate investment trust (REIT), primarily focused on the origination, management, and holding of commercial real estate mortgage loans and equity investments within the United States. The company invests in various commercial real estate-related assets, including floating-rate first mortgage loans and commercial mortgage-backed securities.
As ACRES Commercial Realty navigates through these market dynamics, investors and analysts alike will be keeping a close eye on its performance and strategic initiatives in the coming months.
