RESI - Why Front Yard Residential Stock Rocketed 37% Today
Shares of Front Yard Residential (NYSE: RESI) shot higher by 37% in early trading on Monday. That's in stark contrast to the rest of the year, when the stock of this real estate investment trust (REIT), which specializes in single-family homes, lagged well behind its peers American Homes 4 Rent and Invitation Homes . That all changed today, with Front Yard catching up in one swift move. That said, the less-than-impressive showing leading up to today's giant gain was a key catalyst for today's move.
Over the past two weeks, two activist investors have openly requested that Front Yard Residential liquidate and return cash to investors. The reason for the request is that these investors believed that the REIT was trading for less than it was worth. The laggard stock performance this year was a key factor in this pair's request for an orderly sale of the company's assets. Front Yard Residential went a slightly different direction, but has largely achieved the same end.
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Why Front Yard Residential Stock Rocketed 37% Today