Why Front Yard Residential Stock Plummeted Today
Shares of Front Yard Residential (NYSE: RESI), a real estate investment trust (REIT) that owns single-family homes, fell 20% this morning. Although the market opened lower, too, broader sentiment had nothing to do with the steep price decline at this REIT.
On Feb. 18, before COVID-19-related social-distancing measures had started to take a material economic toll, Front Yard agreed to be acquired by Amherst Residential for $12.50 per share in cash. Front Yard stock initially rose to around that offer price before dropping amid the broader market declines in March, as fears about the economic impact of the novel coronavirus led investors to dump just about everything. However, shares again rose up toward $12.50 after the market recovered from the COVID-19-fueled sell-off. And then, this morning, Amherst and Front Yard announced that the acquisition had been called off.
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Source Fool.com
