Insider Trading January 23, 2026

Eagle Point Reduces Holding in ACRES Commercial Realty's Preferred Stock Amid Valuation Insights

Transactions reveal continued confidence but highlight potential undervaluation in ACRES shares

By Derek Hwang ACR
Eagle Point Reduces Holding in ACRES Commercial Realty's Preferred Stock Amid Valuation Insights
ACR

Eagle Point Credit Management LLC and Eagle Point DIF GP I LLC, both significant stakeholders in ACRES Commercial Realty Corp, executed sales of the company's 7.875% Series D Preferred Stock in late January 2026, liquidating 1,892 shares for approximately $39,494. Despite these sales, ACRES demonstrates strong liquidity and solid returns with a low trading price relative to book value, attracting analyst upgrades following impressive earnings results.

Key Points

  • Eagle Point Credit Management and Eagle Point DIF GP I LLC sold 1,892 shares of ACRES Commercial Realty's 7.875% Series D Preferred Stock for approximately $39,494 in late January 2026.
  • ACRES Commercial Realty trades at roughly $19.94 per share with a market capitalization near $139 million and shows undervaluation with a price-to-book ratio of 0.32.
  • The company reported a strong third-quarter 2025 earnings per share of $1.34, surpassing analyst expectations, despite slightly lower-than-expected revenue, prompting a price target increase by Citizens.
  • The company's current ratio of 75.88 indicates exceptional liquidity, which is a positive sign for financial stability.

In a series of transactions occurring on January 21 and January 23, 2026, Eagle Point Credit Management LLC alongside Eagle Point DIF GP I LLC, both holding over 10% ownership in ACRES Commercial Realty Corp (NASDAQ: ACR), divested portions of their stake in the company’s 7.875% Series D Preferred Stock. The combined sale totaled 1,892 shares, generating approximately $39,494 in proceeds. Share prices during these sales spanned from $22.02 to $22.07 each, with 692 shares sold on the 21st at $22.07 and an additional 1,100 shares exchanged on the 23rd for $22.02 per share.

Despite the insiders' reduction in holdings, ACRES Commercial Realty’s stock currently trades near $19.94 per share, reflecting a market capitalization in the vicinity of $139 million. Analytical data indicates that the equity is undervalued based on InvestingPro’s assessment. Over the past 12 months, the stock has delivered a total return of 13.1%, underscoring solid market performance. The company also benefits from robust liquidity, demonstrated by an outstanding current ratio of 75.88.

Post-transaction, Eagle Point entities maintain a significant position across several share classes within ACRES. This includes 753,599 shares of the 7.875% Series D Preferred Stock, 1,177,060 common shares of $0.001 par value, and 358,430 shares of 8.625% Series C Preferred Stock. InvestingPro data further reveals that ACRES stock is trading at roughly 0.32 times its book value, signaling potential opportunity for value investors.

Further earnings disclosures from ACRES illuminate the company’s operational performance. For the third quarter of 2025, ACRES reported earnings per share (EPS) of $1.34, significantly surpassing analyst forecasts of $0.37 by over 262%. Revenues, however, slightly missed predictions — registering at $21.04 million compared to the $22.25 million projected. Notably, an exceptional gain of $13.1 million from the disposition of a student housing asset contributed positively, adding $1.80 per share to the GAAP earnings tally.

Following these financial disclosures, investment firm Citizens revised its price target upwards to $24.50 from $23.50 for ACRES shares, accompanied by an affirmed Market Outperform rating. This adjustment reflects confidence in the company's earnings strength despite its revenue shortfall.

Overall, the recent insider sales, combined with the company’s earnings surprise and valuation metrics, paint a nuanced picture of ACRES Commercial Realty’s current standing. For investors evaluating entry or expansion points, ongoing monitoring of earnings quality, stock valuation, and insider activity will be pivotal.

Risks

  • The slight revenue miss in Q3 2025 suggests potential volatility or challenges in the top-line growth for ACRES.
  • Insider sales by significant shareholders may raise questions about their outlook or liquidity preferences despite the overall positive earnings results.
  • Valuation metrics such as low price-to-book ratios can reflect undervaluation but may also indicate market concerns or uncertainty regarding future performance.

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