Ashford Hospitality Trust Inc. (NYSE: AHT) stock jumped 6.28% on Friday to $6.09 against a previous-day closing price of $5.73. With 0.52 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.44 million shares. During the session, the REIT – Hotel & Motel company that operates in wider Real Estate sector, reached to the highest price of $6.09 whereas the lowest price it dropped to was $5.64. The 52-week range on AHT shows that it touched its highest point at $12.09 and its lowest point at $4.09 during that stretch. It currently has a 1-year price target of $11.50. Beta for the stock currently stands at 2.14.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of AHT was up-trending over the past week, with a rise of 6.10%, but this was up by 18.25% over a month. Three-month performance dropped to -21.01% while six-month performance fell -28.52%. The stock lost -36.76% in the past year, while it has gained 36.24% so far this year. A look at the trailing 12-month EPS for AHT yields -4.45 with Next year EPS estimates of -4.69. For the next quarter, that number is -1.51. This implies an EPS growth rate of 96.30% for this year and -11.10% for next year. EPS is expected to grow by 5.00% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 33.50%.
Float and Shares Shorts:
At present, 34.37 million AHT shares are outstanding with a float of 33.98 million shares on hand for trading. On Oct 13, 2022, short shares totaled 1.96 million, which was 5.67% higher than short shares on Sep 14, 2022. In addition to Mr. Montgomery Jack Bennett IV as the firm’s Founder & Chairman, Mr. J. Robison Hays III serves as its Pres, CEO & Director.
Through their ownership of 42.39% of AHT’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 22.56% of AHT, in contrast to 20.87% held by mutual funds. Shares owned by individuals account for 0.58%. As the largest shareholder in AHT with 6.31% of the stake, Värde Management LP holds 2,176,453 shares worth 2,176,453. A second-largest stockholder of AHT, BlackRock Fund Advisors, holds 2,174,544 shares, controlling over 6.30% of the firm’s shares. The Vanguard Group, Inc. is the third largest shareholder in AHT, holding 1,567,307 shares or 4.54% stake. With a 3.36% stake in AHT, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 1,160,323 shares are owned by the mutual fund manager. The iShares Russell 2000 ETF, which owns about 2.33% of AHT stock, is the second-largest Mutual Fund holder. It holds 805,195 shares valued at 3.6 million. Vanguard Extended Market Index Fu holds 2.00% of the stake in AHT, owning 690,016 shares worth 3.08 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for AHT since 4 analysts follow the stock currently. There are 1 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 3 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With AHT analysts setting a high price target of $26.00 and a low target of $6.00, the average target price over the next 12 months is $12.25. Based on these targets, AHT could surge 326.93% to reach the target high and fall by -1.48% to reach the target low. Reaching the average price target will result in a growth of 101.15% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. AHT will report FY 2022 earnings on 02/29/2024. Analysts have provided yearly estimates in a range of -$2.45 being high and -$4.22 being low. For AHT, this leads to a yearly average estimate of -$3.34. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Ashford Hospitality Trust Inc. surprised analysts by -$0.08 when it reported -$0.73 EPS against a consensus estimate of -$0.65. The surprise factor in the prior quarter was $0.52. Based on analyst estimates, the high estimate for the next quarter is -$1.51 and the low estimate is -$1.51. The average estimate for the next quarter is thus -$1.51.
Summary of Insider Activity:
Insiders traded AHT stock several times over the past three months with 0 Buys and 2 Sells. In these transactions, 0 shares were bought while 140 shares were sold. The number of buy transactions has increased to 2 while that of sell transactions has risen to 13 over the past year. The total number of shares bought during that period was 49,080 while 36,574 shares were sold.