Macroaxis Stories

Do analysis have more confidence in Ashford Hospitality in July?

July 18, 2020  By Rifka Kats
Macroaxis Story
The upcoming quarterly report is expected on the 6th of August 2020. The stock is currently undergoing an active upward rally. As many baby boomers are still indifferent towards real estate space, it makes sense to break down Ashford as a potential position. I will address the reasons why private investors ignored this entity sinse the beginning of the current market skepticism.
Published over a year ago
View all stories for Ashford Hospitality | View All Stories

Reviewed by Vlad Skutelnik

Ashford Hospitality has 4.15 B in debt.
What is the right price you would pay to acquire a share of Ashford Hospitality? For most investors, it would be the price that gives them a wide margin of safety to have minimal downside risk. In other words, most investors are always looking for undervalued stocks. Even if the future performance is not entirely as expected, the loss of holding it is minimized, and the downside risk is negated. Please read more on our stock advisor page.

What is happening with Ashford Hospitality Trust this year

Annual and quarterly reports issued by Ashford Hospitality Trust are formal financial statements that are published yearly and quarterly and sent to Ashford stockholders. The reports show and break down the current year's ongoing operations and discuss plans for the upcoming year. Annual reports have been a requirement from the Securities and Exchange Commission (SEC) for businesses owned by the public since 1934.
Companies such as Ashford Hospitality often view their annual report as an effective marketing tool to disseminate their perspective on company future earnings or innovations. With this in mind, many companies devote large sums of money to making their reports attractive and informative. In such instances, the annual report becomes a forum through which a company can communicate to the general public any number of topics that may or may not be directly related to the actual data published in the reports.

How important is Ashford Hospitality's Liquidity

Ashford Hospitality financial leverage refers to using borrowed capital as a funding source to finance Ashford Hospitality Trust ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Ashford Hospitality financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Ashford Hospitality's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Ashford Hospitality's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Ashford Hospitality's total debt and its cash.

Ashford Hospitality Gross Profit

Ashford Hospitality Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Ashford Hospitality previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Ashford Hospitality Gross Profit growth over the last 10 years. Please check Ashford Hospitality's gross profit and other fundamental indicators for more details.

What is the case for Ashford Hospitality Investors

Earning per share calculations of the entity is based on official Zacks consensus of 3 analysts regarding the stock future annual earnings. Given the historical accuracy of -30.83%, the future earnings per share of Ashford is estimated to be -1.22 with the lowest and highest values of -1.7 and -0.79, respectively. Please note that this consensus of annual earnings estimates for Ashford Hospitality is an estimate of EPS before non-recurring items and including employee stock options expenses.

Is Ashford a risky opportunity?

Let's check the volatility. Ashford (AHT) looks slightly risky at this time. Whether you invest your money or manage funds of your clients, remember that it is easy to forget that behind Ashford (AHT) stock is an actual business venture. So, do not let stock picking become an abstract concept by ignoring the elementary risk calculations. Buying a share of a Ashford Hospitality Trust stock makes you a part-owner of that company.

Ashford Hospitality Trust Current Consensus

Here is the newest trade recommendation based on an ongoing consensus estimate among financial analysis covering Ashford Hospitality. The Ashford consensus assessment is calculated by taking the average estimates from all of the analysts covering Ashford Hospitality
Strong Buy
1		Hold
4
Strong Buy120.0
Buy00.0
Hold480.0
Sell00.0
Strong Sell00.0

Another 3 percent gain for Ashford Hospitality

Newest value at risk is at -15.88. As of the 18th of July 2020, Ashford Hospitality shows the mean deviation of 27.12, and risk adjusted performance of 0.2409. Ashford Hospitality technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Put another way, you can use this information to find out if the firm will indeed mirror its model of historical prices and volume momentum, or the prices will eventually revert. We were able to break down and interpolate data for nineteen technical drivers for Ashford Hospitality Trust, which can be compared to its rivals. Please confirm Ashford Hospitality variance, as well as the relationship between the value at risk and skewness to decide if Ashford Hospitality is priced correctly, providing market reflects its regular price of 6.93 per share. Given that Ashford Hospitality has jensen alpha of 13.03, we suggest you to validate Ashford Hospitality Trust's prevailing market performance to make sure the company can sustain itself at a future point.

The Current Takeaway on Ashford Hospitality Investment

Whereas other companies under the reit—hotel & motel industry are still a bit expensive, Ashford Hospitality may offer a potential longer-term growth to private investors. In closing, as of 18th of July 2020, we believe that Ashford Hospitality is currently overvalued with below average probability of financial unrest in the next two years. Our primary 30 days buy-hold-sell advice on the firm is Hold.

Building efficient market-beating portfolios requires time, education, and a lot of computing power!

The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.

Try AI Portfolio Architect

Editorial Staff

Rifka Kats is a Member of Macroaxis Editorial Board. Rifka writes about retail product and service companies from the perspective of a regular consumer and sophisticated investor at the same time. She is passionate about corporate ethics and equality in the workforce. View Profile
This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Rifka Kats do not own shares of Ashford Hospitality Trust. Please refer to our Terms of Use for any information regarding our disclosure principles.

Would you like to provide feedback on the content of this article?

You can get in touch with us directly or send us a quick note via email to editors@macroaxis.com