American Realty Investors (NYSE:ARL) Stock Price Passes Below 200-Day Moving Average – Should You Sell?
Shares of American Realty Investors, Inc. (NYSE:ARL) have crossed below their 200-day moving average during trading this past Wednesday. The stock, which has a 200-day moving average of $16.12, dipped to as low as $15.40 before recovering slightly. It last traded at $15.71, with a trading volume of 4,023 shares.
In recent developments, StockNews.com has initiated coverage on American Realty Investors, assigning a “hold” rating on the stock.
Key Financial Metrics
The company currently showcases a robust financial profile with a current ratio of 8.52 and a quick ratio of 8.52, indicating good short-term financial health. Their debt-to-equity ratio stands at 0.23, suggesting a conservative approach to debt. American Realty Investors boasts a market capitalization of approximately $253.64 million, a P/E ratio of -15.25, and a beta of 0.65, indicating less volatility compared to the market. The stock is currently aligning closely with its fifty-day simple moving average of $15.43, while its two-hundred-day simple moving average remains at $16.12.
Recent Earnings Report
The company reported its quarterly earnings on November 7th, showing an earnings per share (EPS) of ($1.08) for the quarter. The revenue tallied at $11.61 million, but the company faced challenges with a negative net margin of 33.78% and a negative return on equity of 2.05%.
Institutional Investments
A variety of institutional investors and hedge funds have adjusted their positions in American Realty Investors recently. Barclays PLC increased its holdings by 257.0% in the third quarter and now owns 1,967 shares, valued at approximately $34,000. Meanwhile, BNP Paribas Financial Markets raised its stake significantly by 1,262.5%, acquiring 4,864 shares worth roughly $85,000. JPMorgan Chase & Co. also lifted its position by 112.0% during the same quarter, owning now 2,798 shares worth about $49,000. Additionally, PFG Investments LLC made a new investment in the firm during the fourth quarter, valued close to $396,000.
Business Overview
American Realty Investors, Inc. focuses on acquiring, developing, owning, and managing multifamily and commercial real estate properties mainly in the Southern United States. The company operates through two segments: Residential and Commercial, leasing apartment units to residents, as well as office, industrial, and retail space to various businesses and government agencies.
Conclusion
Despite the recent decline below the 200-day moving average, which can signal a bearish trend, American Realty Investors has demonstrated strong institutional support, which often indicates confidence in the company’s long-term viability. It is essential for investors to weigh these insights against broader market conditions and their personal investment strategies before making any sell decisions.
