Trade-Ideas LLC identified

Ashford Hospitality Prime

(

AHP

) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Ashford Hospitality Prime as such a stock due to the following factors:

  • AHP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $6.9 million.
  • AHP has traded 160,905 shares today.
  • AHP is trading at 8.07 times the normal volume for the stock at this time of day.
  • AHP is trading at a new low 7.07% below yesterday's close.

'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize (or avoid losses by trimming weak positions). In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on AHP:

Ashford Hospitality Prime, Inc. (NYSE:AHP.WI) operates independently of Ashford Hospitality Trust, Inc. as of November 19, 2013. The stock currently has a dividend yield of 3.5%. Currently there is 1 analyst that rates Ashford Hospitality Prime a buy, 1 analyst rates it a sell, and 4 rate it a hold.

The average volume for Ashford Hospitality Prime has been 210,100 shares per day over the past 30 days. Ashford Hospitality Prime has a market cap of $322.1 million and is part of the financial sector and real estate industry. Shares are up 1.4% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Ashford Hospitality Prime as a

sell

. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, poor profit margins, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

Highlights from the ratings report include:

  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, ASHFORD HOSPITALITY PRME INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for ASHFORD HOSPITALITY PRME INC is currently extremely low, coming in at 12.50%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -0.13% is significantly below that of the industry average.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 27.92%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 300.00% compared to the year-earlier quarter. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
  • ASHFORD HOSPITALITY PRME INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past year. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, ASHFORD HOSPITALITY PRME INC swung to a loss, reporting -$0.29 versus $0.06 in the prior year. This year, the market expects an improvement in earnings ($0.45 versus -$0.29).
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Real Estate Investment Trusts (REITs) industry average. The net income increased by 35.0% when compared to the same quarter one year prior, rising from -$0.21 million to -$0.13 million.

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