Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link. Trade-Ideas LLC identified Ashford Hospitality ( AHT) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Ashford Hospitality as such a stock due to the following factors:
- AHT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $7.9 million.
- AHT traded 83,850 shares today in the pre-market hours as of 8:45 AM, representing 11.1% of its average daily volume.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in AHT with the Ticky from Trade-Ideas. See the FREE profile for AHT NOW at Trade-Ideas More details on AHT: Ashford Hospitality Trust, Inc. is a publicly owned real estate investment trust. The firm engages in investment and management of properties in the hospitality industry. It invests in the real estate markets of the United States. The stock currently has a dividend yield of 4.3%. Currently there are 4 analysts that rate Ashford Hospitality a buy, no analysts rate it a sell, and 7 rate it a hold. The average volume for Ashford Hospitality has been 770,000 shares per day over the past 30 days. Ashford has a market cap of $889.9 million and is part of the financial sector and real estate industry. Shares are up 32.2% year-to-date as of the close of trading on Monday. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. TheStreetRatings.com Analysis: TheStreet Quant Ratings rates Ashford Hospitality as a sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, disappointing return on equity, poor profit margins and generally disappointing historical performance in the stock itself. Highlights from the ratings report include:
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Real Estate Investment Trusts (REITs) industry. The net income has significantly decreased by 37.8% when compared to the same quarter one year ago, falling from -$12.60 million to -$17.37 million.
- 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 TRUST's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for ASHFORD HOSPITALITY TRUST is currently extremely low, coming in at 6.67%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -8.64% is significantly below that of the industry average.
- In its most recent trading session, AHT has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
- AHT, with its decline in revenue, underperformed when compared the industry average of 6.7%. Since the same quarter one year prior, revenues fell by 15.4%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- You can view the full Ashford Hospitality Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.