Eagle Point Credit Management LLC, a significant stakeholder in ACRES Commercial Realty Corp. (NYSE:ACR), reported a sale of 100 shares of the company's 8.625% Series C Preferred Stock. The transaction, which took place on October 23, 2024, was executed at a price of $24.89 per share, amounting to a total of $2,489.
Following this sale, Eagle Point Credit Management retains ownership of 499,291 shares of the Series C Preferred Stock. The filing also indicates holdings of 921,078 shares of the 7.875% Series D Preferred Stock and 1,191,307 shares of Common Stock, all indirectly owned through private investment funds and accounts managed by Eagle Point.
Both Eagle Point Credit Management and Eagle Point DIF GP I LLC, which serves as a general partner to certain accounts, have filed the transaction. They maintain that they do not claim beneficial ownership of the securities as outlined in the report.
"In other recent news, Acres Commercial Realty Corp reported a net decrease in its loan portfolio for the second quarter of 2024, with a GAAP net income of $1.7 million and a book value per share of $27.20. Jones Trading initiated coverage on Acres Commercial Realty, assigning a Hold rating to the stock, highlighting the company's ongoing efforts to enhance the quality of its loan portfolio. The firm also noted the company's strategy to monetize equity assets in future quarters, signaling a potential reinstatement of dividends once it can deploy the recycled equity capital into new loans.
InPoint Commercial Real Estate Income, Inc. successfully concluded its 2024 Annual Meeting of Stockholders, resulting in the election of five directors to its Board. Stockholders also ratified the appointment of KPMG LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2024.
These are recent developments within Acres Commercial Realty Corp and InPoint Commercial Real Estate Income, Inc. The updates are based on the companies' own reports and analysis from Jones Trading. The strategic moves by Acres Commercial Realty are aimed at positioning the company for future growth while maintaining a cautious financial stance."
InvestingPro Insights
While Eagle Point Credit Management has slightly reduced its position in ACRES Commercial Realty Corp.'s (NYSE:ACR) preferred stock, the company's overall financial health and market performance present an intriguing picture for investors.
According to InvestingPro data, ACR's market capitalization stands at $110.87 million USD, reflecting its position as a small-cap real estate finance company. The stock has shown remarkable strength over the past year, with a one-year price total return of 111.31% as of the latest data. This impressive performance aligns with one of the InvestingPro Tips, which highlights the "high return over the last year."
Another notable InvestingPro Tip indicates that ACR "has a perfect Piotroski Score of 9," suggesting strong financial health and potential for future growth. This score is particularly relevant given the recent insider transaction, as it may provide confidence to investors despite the small sale by a major stakeholder.
The company's Price to Book ratio of 0.26 for the last twelve months as of Q2 2024 suggests that ACR might be undervalued relative to its book value. This low P/B multiple is highlighted as another InvestingPro Tip, potentially signaling an opportunity for value investors.
For those interested in a deeper analysis, InvestingPro offers 7 additional tips that could provide further insights into ACR's financial position and market prospects. These additional tips could be particularly valuable for investors looking to understand the full implications of insider transactions like the one reported.
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