Trade-Ideas LLC identified Ashford Hospitality Prime ( AHP) as a strong 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 $7.1 million.
  • AHP has traded 56,368 shares today.
  • AHP is trading at 7.03 times the normal volume for the stock at this time of day.
  • AHP is trading at a new high 4.12% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into 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. 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 2.8%. AHP has a PE ratio of 46. 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 250,400 shares per day over the past 30 days. Ashford Hospitality Prime has a market cap of $402.9 million and is part of the financial sector and real estate industry. Shares are down 19.4% year-to-date as of the close of trading on Monday.

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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 24.29% 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 decreased to $18.61 million or 31.85% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • The gross profit margin for ASHFORD HOSPITALITY PRME INC is rather low; currently it is at 19.84%. 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 7.30% is significantly lower than 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.

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