Jones Trading Gives Hold Recommendation for ACR.PRD Stock

In a recent report, Jones Trading initiated coverage of ACRES Commercial Realty – Preferred Stock with a Hold recommendation, cognizant of a drop in institutional ownership and portfolio weighting. This development could impact investor sentiment and stock price stability.

Date: 09-10-2024

AI Rating: 5

According to the report, Jones Trading has initiated coverage of ACRES Commercial Realty – Preferred Stock (ACR.PRD) with a Hold recommendation. This reflects a cautious stance toward the stock, indicating that significant price appreciation may not be expected in the near term.

The report highlights that there has been a decrease in institutional ownership for ACR.PRD, with a 25.00% decline in the number of funds or institutions reporting positions in the last quarter. This decline could signal a lack of confidence among institutional investors and may lead to downward pressure on the stock price.

Moreover, the total shares owned by institutions have decreased by 6.50% to 634K shares. This drop in ownership suggests that institutions may be reallocating their portfolios away from this stock, which usually has a negative connotation in terms of demand for the shares.

Institutional investor PFF - iShares Preferred and Income Securities ETF also reported a decrease in allocation, holding 391K shares after a 10.52% reduction. This further emphasizes the shifting sentiment towards ACR.PRD.

Lastly, the report mentions that the average portfolio weight of all funds dedicated to ACR.PRD has increased by 31.45% to 0.25%. Although this increase suggests a minimal focus on this security, it is overshadowed by the overall decrease in shares owned.

Stocks: ACR.PRD