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.

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 $3.8 million.
  • AHP has traded 66,133 shares today.
  • AHP is trading at 11.81 times the normal volume for the stock at this time of day.
  • AHP is trading at a new low 14.21% 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 2.9%. AHP has a PE ratio of 73. Currently there are 2 analysts that rate Ashford Hospitality Prime a buy, 1 analyst rates it a sell, and 3 rate it a hold.

The average volume for Ashford Hospitality Prime has been 158,600 shares per day over the past 30 days. Ashford Hospitality Prime has a market cap of $334.0 million and is part of the financial sector and real estate industry. Shares are down 18.4% year-to-date as of the close of trading on Thursday.

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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 generally disappointing historical performance in the stock itself, weak operating cash flow and poor profit margins.

Highlights from the ratings report include:
  • AHP has underperformed the S&P 500 Index, declining 14.64% from its price level of one year ago. Looking ahead, other than the push or pull of the broad market, we do not see anything in the company's numbers that may help reverse the decline experienced over the past 12 months. Despite the past decline, the stock is still selling for more than most others in its industry.
  • Net operating cash flow has significantly decreased to -$39.37 million or 777.29% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • The gross profit margin for ASHFORD HOSPITALITY PRME INC is currently extremely low, coming in at 10.62%. Regardless of AHP's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, AHP's net profit margin of -0.26% significantly underperformed when compared to the industry average.
  • 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.
  • ASHFORD HOSPITALITY PRME INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, ASHFORD HOSPITALITY PRME INC turned its bottom line around by earning $0.06 versus -$0.71 in the prior year. This year, the market expects an improvement in earnings ($0.83 versus $0.06).

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