Ashford Hospitality Trust Inc (NYSE: AHT) shares fell in early trading yesterday lower trade volume than normal after a number of analysts weighed in on the investing value of the stock with a downgraded rating.
Meanwhile in early trading, the Dow Jones Industrial Average DJIA, +0.31% rose 24 points, or 0.1%, to 19,883, while the S&P 500 index ESH7, +0.13% dipped less than 1 point to 2,268. The Nasdaq Composite COMP, +0.02% which reached its fourth-straight record close on Tuesday, rose 1 point to 5,553.
Analysts at Robert W. Baird downgraded shares of Ashford Hospitality Trust Inc (NYSE: AHT) from Outperform to Neutral in a research note to investors today. With a rating of Neutral on the shares, the company has a 52-week high of $7.96. A number of other analysts have commented on the company in recent days, and Ashford Hospitality Trust Inc has earned a consensus one-year price target of $6.75, less than the opening price of $7.71, a difference of 8.77 percent. Downgrades are more likely when analysts consider that the future prospects for the security have dropped from the initial recommendation, usually because of a considerable and major digression in the company’s procedures, future outlook or industry.
Yesterday Ashford Hospitality Trust Inc (NYSE: AHT) shares last traded at $7.70, which is a drop of $0.17 compared to the previous closing price. Opening at $7.71, they fluctuated from $7.66 and $7.82 throughout the day.
Ashford Hospitality Trust Inc (NYSE: AHT) now has a market cap of 740.57M.
Ashford Hospitality Trust Inc (NYSE: AHT) Average Daily Trading Volume
The stock’s average daily volume is 613,676 shares out of a total float 79,769,000 and some 77,097 shares crossed the trading desk yesterday, 99 percent lower than normal. lower than normal. Look for trading volume to pick up in the coming days as swing traders often use swings in trading volume to identify heavy volume accumulation or distribution by institutional investors.
However, a single day of heavy buy side trading is not enough to assert a trend. As such, market traders will continue to watch for institutional sponsorship as a signal that financial institutions are moving forward.
Institutional sponsorship simply refers to ownership of a stock by mutual funds, banks, pension funds and other large institutions.
These professional investors have teams of analysts that investigate thousands of stocks, so it is good corroboration to see them taking a postion in a stock you’re researching.
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 identifying trends, moving averages allow traders to make those trends work in their favor and increase the number of successful trades.
With that in mind, Ashford Hospitality Trust Inc (NYSE: AHT) now has a 50-day MA of $7.47 and 200-day MA of $6.43. It has traded in a 52-week range between $4.15 – 7.96 and today’s last price is 3.27%% lower than the 52 week high of $7.96.
Earnings growth is a critical factor to consider when investing in stocks and investors look for companies that have grown their earnings by at least 25% for the past 3 years.
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