RLJ Lodging Trust (NYSE: RLJ)’s stock price has gone decline by -2.40 in comparison to its previous close of 11.23, however, the company has experienced a -6.00% decrease in its stock price over the last five trading days. Seeking Alpha reported 2024-03-28 that RLJ Lodging Trust owns 97 hotels, with a focus on urban hotels in the Sunbelt region. RevPAR grew 9.2% in 2023, with a further increase of 4% expected for 2024. Adjusted FFO per share increased 22.1% in 2023 but is expected to be marginally lower in 2024 on higher interest rates.
Is It Worth Investing in RLJ Lodging Trust (NYSE: RLJ) Right Now?
RLJ Lodging Trust (NYSE: RLJ) has a higher price-to-earnings ratio of 34.20x compared to its average ratio. RLJ has 36-month beta value of 1.69. Analysts have mixed views on the stock, with 2 analysts rating it as a “buy,” 2 as “overweight,” 7 as “hold,” and 1 as “sell.”
The public float for RLJ is 151.12M, and currently, short sellers hold a 5.21% ratio of that float. The average trading volume of RLJ on April 18, 2024 was 1.31M shares.
RLJ’s Market Performance
The stock of RLJ Lodging Trust (RLJ) has seen a -6.00% decrease in the past week, with a -7.59% drop in the past month, and a -3.86% fall in the past quarter. The volatility ratio for the week is 2.45%, and the volatility levels for the past 30 days are at 2.06% for RLJ.. The simple moving average for the past 20 days is -6.42% for RLJ’s stock, with a 2.64% simple moving average for the past 200 days.
Analysts’ Opinion of RLJ
Many brokerage firms have already submitted their reports for RLJ stocks, with Wolfe Research repeating the rating for RLJ by listing it as a “Outperform.” The predicted price for RLJ in the upcoming period, according to Wolfe Research is $15 based on the research report published on January 10, 2024 of the current year 2024.
Oppenheimer, on the other hand, stated in their research note that they expect to see RLJ reach a price target of $13. The rating they have provided for RLJ stocks is “Outperform” according to the report published on November 28th, 2023.
RLJ Trading at -6.96% from the 50-Day Moving Average
After a stumble in the market that brought RLJ to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -11.54% of loss for the given period.
Volatility was left at 2.06%, however, over the last 30 days, the volatility rate increased by 2.45%, as shares sank -8.05% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -5.11% lower at present.
During the last 5 trading sessions, RLJ fell by -6.00%, which changed the moving average for the period of 200-days by +6.72% in comparison to the 20-day moving average, which settled at $11.66. In addition, RLJ Lodging Trust saw -6.48% in overturn over a single year, with a tendency to cut further losses.
Insider Trading
Reports are indicating that there were more than several insider trading activities at RLJ starting from Collins Arthur Reginald, who sale 25,000 shares at the price of $11.92 back on Dec 22 ’23. After this action, Collins Arthur Reginald now owns 30,758 shares of RLJ Lodging Trust, valued at $298,000 using the latest closing price.
DAVIS NATHANIEL A, the Director of RLJ Lodging Trust, sale 39,594 shares at $9.87 during a trade that took place back on Nov 10 ’23, which means that DAVIS NATHANIEL A is holding 43,423 shares at $390,793 based on the most recent closing price.
Stock Fundamentals for RLJ
Current profitability levels for the company are sitting at:
- 0.25 for the present operating margin
- 0.26 for the gross margin
The net margin for RLJ Lodging Trust stands at 0.06. The total capital return value is set at 0.07. Equity return is now at value 3.21, with 1.54 for asset returns.
Based on RLJ Lodging Trust (RLJ), the company’s capital structure generated 0.49 points at debt to capital in total, while cash flow to debt ratio is standing at 0.14. The debt to equity ratio resting at 0.95. The interest coverage ratio of the stock is 3.08.
Currently, EBITDA for the company is 329.53 million with net debt to EBITDA at 5.13. When we switch over and look at the enterprise to sales, we see a ratio of 2.64. The receivables turnover for the company is 50.67for trailing twelve months and the total asset turnover is 0.27.
Conclusion
To put it simply, RLJ Lodging Trust (RLJ) has had a bad performance in recent times. Analysts have a mixed opinion on the stock, with some rating it as a “buy” and others as a “hold”. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
