Insider Trading May 22, 2026 07:50 PM

Eagle Point Credit Divests Stake in Acres Commercial Realty Stock

Reported sale of preferred stock raises questions amid recent earnings misses and valuation metrics for ACR.

By Nina Shah ACR

Entities associated with Eagle Point Credit reported a specific divestiture of ACRES Commercial Realty Corp. (ACR) stock on May 20, 2026. This transaction occurs against a backdrop of the company's first-quarter 2026 earnings falling significantly below analyst forecasts, while valuation metrics suggest potential interest.

Eagle Point Credit Divests Stake in Acres Commercial Realty Stock
ACR

Key Points

  • The sale by Eagle Point Credit and related entities of ACR preferred stock was reported on May 20, 2026.
  • ACR's most recent first-quarter 2026 earnings missed analyst forecasts significantly, with EPS at $0.07 versus a forecast of $0.1706.
  • Despite reported financial challenges, the company maintains an attractive PEG ratio of 0.25 and has seen management actively buying back shares.

Entities connected to Eagle Point Credit Management LLC and Eagle Point DIF GP I LLC have reported a recent sale involving ACRES Commercial Realty Corp. (ACR) stock on May 20, 2026. Specifically, the two firms disposed of 404 shares of the 7.875% Series D Preferred Stock at a price of $22.5 per share. This transaction generated total proceeds amounting to $9,090.

Following this reported sale, Eagle Point Credit Management LLC and Eagle Point DIF GP I LLC maintain indirect holdings in ACR stock. These current indirect positions include 737,524 shares of the 7.875% Series D Preferred Stock, alongside 1,177,060 shares of Common Stock (with a par value of $0.001), and an additional 349,907 shares of 8.625% Series C Preferred Stock in ACRES Commercial Realty Corp.

The reported divestiture takes place while ACR is trading at $19.63, reflecting a current market capitalization of $128.82 million. Analysis from InvestingPro indicates that the stock carries a relatively low Price-to-Earnings (P/E) ratio of 27.88 when compared to near-term earnings growth. Furthermore, the PEG ratio is noted as being notably attractive at 0.25.

The securities in question are held through private investment funds and accounts managed by Eagle Point Credit Management LLC, with Eagle Point DIF GP I LLC functioning as the general partner for some of these specific accounts. It must be noted that both reporting entities explicitly disclaim beneficial ownership of the reported securities.


Recent Financial Performance Context

In separate recent news detailing the company's operational standing, Acres Commercial Realty Corp released its first-quarter 2026 earnings report. This quarterly performance demonstrated a shortfall when compared to analyst expectations. The corporation announced an Earnings Per Share (EPS) of $0.07 per share. This figure was significantly below the forecasted amount of $0.1706, resulting in a substantial negative surprise of 58.97%.

Revenue figures also failed to meet market predictions. ACR reported revenue at $19.5 million, which contrasted with the anticipated $20.92 million. This shortfall represented a decrease of 6.79% relative to expectations.

Despite these underwhelming financial outcomes presented in its first-quarter report, the stock experienced a marginal increase during pre-market trading hours. These combined developments underscore the company's recent period of financial challenges and operational adjustments.


Key Investment Observations