A study of analyst recommendations at the major brokerages shows that Ashford Hospitality Prime Inc (AHP) is the #49 broker analyst pick among those stocks screened by The Online Investor for strong stock buyback activity. To make that list, a stock must have repurchased at least 5% of its outstanding shares over the trailing twelve month period. In forming the rank, the analyst opinions from the major brokerage houses were tallied, and averaged; then, the list of stocks with strong buyback activity was ranked according to those averages.Investors are often keenly interested in knowing which companies are buying back their own stock, because companies often will only make such a move if they feel their stock is undervalued. Ashford Hospitality Prime Inc is a company with strong buyback activity that is also considered a compelling buy by analysts; a bullish investor could take this to mean that sharp analyst minds came to the same bullish conclusion as the company itself that the stock is a good value, and therefore the stock should do well in the future. Analysts studying companies buying back their own stock will also factor into their analysis that future earnings will now be spread over a smaller share count, thereby increasing the per-share earnings the remaining shares will enjoy, versus what that same number would have been absent the stock buyback activity. AHP operates in the REITs sector, among companies like American Tower Corp (AMT) which is down about 0.7% today, and Simon Property Group, Inc. (SPG) trading lower by about 2.5%. Below is a three month price history chart comparing the stock performance of AHP, versus AMT and SPG. AHP is currently trading off about 1.6% midday Thursday.
TheStreet’s Fundamentals of Investing Course will teach you the keys to making the right decisions in any market.
TheStreet’s Personal Finance Essentials Course will teach you money management basics and investing strategies to help you avoid major financial pitfalls.
TheStreet Courses offers dedicated classes designed to improve your investing skills, stock market knowledge and money management capabilities.
More from Stocks
How a Former NYSE Trader Learned to Trade From His Dad
TheStreet honors Dad's this Father's Day. A former how his dad taught him to invest and the lessons he learned along the way.
Dow Ends Lower in Narrow Trading Friday; Markets Shrug Off Global Tensions
Stocks retreat Friday over disappointment over Broadcom's revenue warning and uncertainty over trade talks and interest rates.
Jim Cramer: A 'Hard Left' Democratic President Would Be a 'Disaster' for Stocks
That's one of the biggest macro risks he sees for Wall Street right now.