Ashford Hospitality Trust Inc (NYSE: AHT) shares fell on Wednesday Jan 4 with lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a downgraded rating.
Meanwhile, U.S. stocks opened higher on Wednesday as banking stocks led the Dow Jones Industrial Average closer to the 20,000 milestone.
The Dow DJIA, +0.18% gained 25 points, or 0.1%, to 19,906. The S&P 500 SPX, +0.36% climbed four points, or 0.2%, to 2,262. The Nasdaq Composite Index COMP, +0.50% added 13 points, or 0.3%, to 5,447.
Shares of Ashford Hospitality Trust Inc (NYSE: AHT) were downgraded by analysts at FBR & Co in a note to their investors today. With a rating of Market Perform on the shares, the company has a 52-week high of $7.94. The one-year price target of $6.75 is a decrease compared to the opening price of $7.59, that has caused a number of other analysts to comment on the stock recently. Important and fundamental changes in the company’s procedures, future outlook or industry can cause downgrades as the analysts believe that the future prospects for the security have dropped from the original recommendation.
Ashford Hospitality Trust Inc (NYSE: AHT) shares last traded at $7.60, which represents a drop of $0.32 per share or -0.04 compared to the previous closing price. Opening at $7.59, they fluctuated from $7.50 and $7.75 throughout the day.
Ashford Hospitality Trust Inc (NYSE: AHT) currently has a market cap of 730.95M.
Ashford Hospitality Trust Inc (NYSE: AHT) Average Daily Trading Volume
The stock’s average daily volume is 589,292 shares out of a total float 79,769,000 and some 130,497 shares crossed the trading desk yesterday, below normal. lower than normal. Look for trading volume to pick up in the coming days as swing traders often use increases in trading volume to identify heavy volume accumulation or distribution by institutional investors.
While increased trading for one day will not mean much, however, a trend of heavy trading volume on the buy side over a period of days or weeks sends a positive signal to market traders that institutions may be moving in, so institutional sponsorship is very important.
Institutional sponsorship is defined by ownership of a stock by mutual funds, banks, pension funds and other large institutions.
Institutional investors such as these retain teams of analysts that research thousands of stocks. Thus, watching their interests is a good way to make sure you are buying the right stocks.
Ashford Hospitality Trust Inc (NYSE: AHT) Moving Averages
A moving average can also act as support or resistance. In an uptrend a 50-day, 100-day or 200-day moving average may act as a support level, as shown in the figure below.
This is because the average acts like a floor (support), so the price bounces up off of it.
In a downtrend a moving average may act as resistance; like a ceiling, the price hits it and then starts to drop again.
By spotting trends, moving averages allow investors to make those trends work in their favor and increase the number of winning trades.
Trades for Ashford Hospitality Trust Inc (NYSE: AHT) have ranged from $4.15 – 7.94, and the stock now has a 50-day MA of $7.27 and 200-day MA of $6.34. Today’s last price is 0.04% under the 52 week high of $7.94.
Earnings growth is an important factor to look at when buying stocks and investors watch for companies that have increased their earnings by at least 25% for the past 3 years.
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