Eagle Point Credit Management LLC, holding a 10% ownership stake and a directorship at ACRES Commercial Realty Corp. (NASDAQ: ACR), has completed a series of divestments involving its preferred equity position. Between July 22 and July 24, 2026, the firm sold a total value of $201,147 in 7.875% Series D Preferred Stock. The sales were executed across multiple transactions, with share prices ranging from $21.78 to $21.79.
The divestment activity began on July 22, 2026, when Eagle Point Credit Management sold 2,732 shares at a price of $21.78 per share. The following day, July 23, 2026, the firm liquidated an additional 5,234 shares at $21.79 per share. For this specific transaction, the shares were sold in multiple lots at prices varying between $21.78 and $21.84 per share. The final reported transaction occurred on July 24, 2026, involving the sale of 1,267 shares at $21.78 per share. Prices for this transaction ranged from $21.78 to $21.80 per share. The reported prices reflect weighted average prices per share.
Following these recent sales, Eagle Point Credit Management LLC indirectly maintains beneficial ownership of 720,486 shares of the 7.875% Series D Preferred Stock. These securities are held by various private investment funds and accounts managed by Eagle Point Credit Management LLC. Eagle Point DIF GP I LLC serves as the general partner for certain of these accounts. Both Eagle Point Credit Management LLC and Eagle Point DIF GP I LLC have formally disclaimed beneficial ownership of these securities.
The insider selling activity occurs against a backdrop of broader challenges for ACRES Commercial Realty Corp. The company's common stock has faced significant headwinds this year, declining 17% year-to-date. As of recent trading, ACR's common stock was priced at $17.65, reflecting a market capitalization of $115.96 million. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value assessment, trading at a notably low price-to-book multiple of 0.27. Despite these financial metrics, the company recently reported its first-quarter 2026 earnings, which fell short of analyst expectations. The firm posted an earnings per share (EPS) of $0.07, a significant miss below the forecasted $0.1706, representing a 58.97% negative surprise. Revenue also missed estimates, coming in at $19.5 million compared to the anticipated $20.92 million, marking a 6.79% shortfall.
Beyond the preferred stock transactions, Eagle Point Credit Management LLC maintains other positions within ACRES Commercial Realty Corp. The firm indirectly holds 1,177,060 shares of ACR Common Stock, which has a $0.001 par value, and 339,325 shares of 8.625% Series C Preferred Stock. The recent earnings miss and subsequent stock performance highlight the difficulties ACRES Commercial Realty is navigating in aligning with market expectations. The company's stock did experience a minor pre-market increase following the earnings report, but the overall trajectory remains constrained by the missed financial targets.