RESI - Why Front Yard Residential Stock Rocketed 21% Out of the Gate Today
Shares of real estate investment trust (REIT) Front Yard Residential (NYSE: RESI) rose a little more than 21% at the open of trading on Nov. 23. That level is likely to stick, because it is directly related to an updated agreement with affiliates of Ares Management (NYSE: ARES) .
This has been an eventful year for Front Yard, which owns single-family homes. It is relatively small compared to industry giants like American Homes 4 Rent and had been trading at a relative discount. That resulted in two large investors pushing Front Yard to sell its portfolio and return cash to shareholders. Instead of that, the company agreed to sell itself to affiliates of Ares for $13.50 per share in October. The stock rallied massively on the news.
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Why Front Yard Residential Stock Rocketed 21% Out of the Gate Today