Two Financial Stocks to Sell in Q3: Live Oak Bancshares and Acres Commercial Realty

Live Oak Bancshares Inc (LOB) and Acres Commercial Realty Corp (ACR) are considered overbought by the Relative Strength Index (RSI) with values of 70.6 and 71.7, respectively. LOB's stock has risen 32% in the past month, while ACR's stock has gained 15%. Both companies have a 52-week high, with LOB's being $50.57 and ACR's being $23.81.

Live Oak Bancshares Inc (LOB) and Acres Commercial Realty Corp (ACR) are currently considered overbought by the Relative Strength Index (RSI), with values of 70.6 and 71.7, respectively. This indicator suggests that these stocks may be overvalued based on their recent price movements. However, both companies have shown significant momentum, with LOB's stock rising 32% in the past month and ACR's stock gaining 15% over the same period. As of Tuesday, LOB shares traded at $35.74, while ACR shares traded at $20.38 [2].

Live Oak Bancshares Inc's stock has been bolstered by a recent upgrade from Keefe, Bruyette & Woods (KBW) analyst Timothy Switzer. The analyst upgraded LOB from "market perform" to "outperform" and raised the price target from $37 to $43, a 25.4% increase. This upgrade reflects KBW's expectation of several positive catalysts driving shares higher over the rest of 2025. The brokerage also anticipates a turnaround in credit performance in the second half of 2025, which could ease investor concerns [1].

Acres Commercial Realty Corp (ACR) has shown strong performance, with its stock rising around 15% in the past month. The company reported upbeat quarterly sales and expects to grow its portfolio by investing in high-quality properties nationwide. Despite the positive news, ACR's stock is also considered overbought by the RSI indicator [2].

Investors should be cautious when considering these stocks due to their overbought status. While both companies have shown strong momentum, the high RSI values suggest that the stocks may be overvalued. It is essential for investors to conduct thorough research and consider their risk tolerance before making any investment decisions.

References:
[1] https://www.tradingview.com/news/reuters.com,2025:newsml_L6N3UB0PK:0-live-oak-bancshares-rises-after-kbw-upgrades-to-outperform/
[2] https://www.benzinga.com/trading-ideas/short-ideas/25/08/47216393/top-2-financial-stocks-you-may-want-to-dump-in-q3