ACRES Commercial Realty (NYSE:ACR) Releases Quarterly Earnings Results, Misses Expectations By $0.92 EPS

ACRES Commercial Realty (NYSE:ACR) released its quarterly earnings data on Wednesday. The company reported ($0.74) earnings per share for the quarter, missing the consensus estimate of $0.18 by ($0.92), FiscalAI reports. ACRES Commercial Realty had a net margin of 37.20% and a return on equity of 5.61%.

ACRES Commercial Realty Stock Down 3.8%

Shares of ACR traded down $0.70 during trading hours on Thursday, reaching $17.60. 15,859 shares of the stock traded hands, compared to its average volume of 25,295. ACRES Commercial Realty has a 52 week low of $15.61 and a 52 week high of $24.61. The company has a market cap of $125.49 million, a price-to-earnings ratio of 27.22 and a beta of 1.09. The stock has a fifty day simple moving average of $18.12 and a 200 day simple moving average of $19.06. The company has a current ratio of 164.62, a quick ratio of 164.62 and a debt-to-equity ratio of 3.36.

Wall Street Analysts Forecast Growth

Several brokerages have recently weighed in on ACR. Wall Street Zen lowered shares of ACRES Commercial Realty from a “hold” rating to a “sell” rating in a report on Sunday, July 5th. Weiss Ratings upgraded ACRES Commercial Realty from a “sell (d+)” rating to a “hold (c)” rating in a research note on Monday, May 11th. Finally, Zacks Research downgraded ACRES Commercial Realty from a “hold” rating to a “strong sell” rating in a research note on Friday, July 17th. Two investment analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the stock currently has an average rating of “Hold” and a consensus price target of $24.50.

Key Stories Impacting ACRES Commercial Realty

Here are the key news stories impacting ACRES Commercial Realty this week:

• Positive Sentiment: Management said its commercial real estate loan opportunity pipeline remains healthy and that the previously announced internalization of management is progressing toward completion. Internalization could reduce external management costs and better align expenses with shareholder interests. ACRES reports quarterly net loss and internalizes management
• Positive Sentiment: ACRES Commercial Realty scheduled a conference call to discuss the results, giving investors an opportunity to seek additional details on credit performance, loan originations and the internalization process. ACRES Commercial Realty second-quarter results
• Neutral Sentiment: Second-quarter revenue was approximately $21.0 million, slightly above the roughly $20.3 million consensus estimate. However, reported earnings varied by measure, with media reports citing losses of approximately $0.74 to $2.26 per share, compared with expectations for a profit of about $0.11 to $0.18 per share. ACRES Commercial Q2 loss report
• Negative Sentiment: ACRES reported a GAAP net loss allocable to common shareholders of about $12.5 million, or $1.87 per diluted share, a sharp reversal from the prior-year profit. Another report cited a $2.26-per-share loss, underscoring the severity of the earnings shortfall and likely weighing on investor confidence. ACRES posts second-quarter GAAP net loss
• Negative Sentiment: Major shareholder Eagle Point Credit Management sold 3,807 ACR shares from July 27–29 for roughly $83,000. The sales reduced its stake by less than 1% and left it with more than 716,000 shares, making the signal modest but potentially cautionary. SEC shareholder transaction filing

Insider Buying and Selling

In other ACRES Commercial Realty news, major shareholder Eagle Point Credit Management sold 2,212 shares of the stock in a transaction dated Wednesday, July 29th. The shares were sold at an average price of $21.80, for a total value of $48,221.60. Following the completion of the sale, the insider owned 716,679 shares in the company, valued at approximately $15,623,602.20. This trade represents a 0.31% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. In the last ninety days, insiders have sold 21,087 shares of company stock valued at $503,115. Company insiders own 4.60% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the business. BNP Paribas Financial Markets increased its stake in shares of ACRES Commercial Realty by 120.2% in the third quarter. BNP Paribas Financial Markets now owns 1,354 shares of the company’s stock worth $29,000 after purchasing an additional 739 shares in the last quarter. JPMorgan Chase & Co. bought a new position in ACRES Commercial Realty in the 2nd quarter valued at $52,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. purchased a new position in shares of ACRES Commercial Realty during the 2nd quarter valued at $60,000. Bank of America Corp DE grew its position in shares of ACRES Commercial Realty by 110.4% during the 2nd quarter. Bank of America Corp DE now owns 3,671 shares of the company’s stock valued at $66,000 after purchasing an additional 1,926 shares in the last quarter. Finally, MetLife Investment Management LLC bought a new position in shares of ACRES Commercial Realty in the fourth quarter worth $76,000. Institutional investors own 40.03% of the company’s stock.

About ACRES Commercial Realty

ACRES Commercial Realty Corp., a real estate investment trust (REIT), focuses on the origination, holding, and management of commercial real estate mortgage loans and equity investments in commercial real estate property in the United States. It invests in commercial real estate-related assets, including floating-rate first mortgage loans, first priority interests in first mortgage loans, subordinated interests in first mortgage loans, mezzanine financing, preferred equity investments, and commercial mortgage-backed securities.