The stock price of RLJ Lodging Trust (NYSE: RLJ) has surged by 0.33 when compared to previous closing price of 9.06, but the company has seen a 1.00% gain in its stock price over the last five trading sessions. seekingalpha.com reported 2024-10-16 that Average REIT short interest fell 8 basis points in September to 3.7% of shares outstanding, per S&P Global Market Intelligence data. The hotel sector followed with a 60-basis point drop, while the office sector remained the most-shorted at 5.3% of shares outstanding. Wheeler Real Estate Investment Trust logged the largest increase in short interest, up 16 percentage points to 32.4% of shares outstanding.
Is It Worth Investing in RLJ Lodging Trust (NYSE: RLJ) Right Now?
RLJ Lodging Trust (NYSE: RLJ) has a price-to-earnings ratio of 34.77x that is above its average ratio. Additionally, the 36-month beta value for RLJ is 1.70. There are mixed opinions on the stock, with 2 analysts rating it as a “buy,” 2 rating it as “overweight,” 7 rating it as “hold,” and 1 rating it as “sell.”
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The public float for RLJ is 150.45M and currently, short sellers hold a 9.06% ratio of that float. The average trading volume of RLJ on October 31, 2024 was 1.53M shares.
RLJ’s Market Performance
The stock of RLJ Lodging Trust (RLJ) has seen a 1.00% increase in the past week, with a -1.73% drop in the past month, and a -1.73% fall in the past quarter. The volatility ratio for the week is 1.81%, and the volatility levels for the past 30 days are at 1.89% for RLJ. The simple moving average for the last 20 days is -0.59% for RLJ stock, with a simple moving average of -11.94% for the last 200 days.
Analysts’ Opinion of RLJ
Wells Fargo, on the other hand, stated in their research note that they expect to see RLJ reach a price target of $9, previously predicting the price at $11. The rating they have provided for RLJ stocks is “Underweight” according to the report published on September 13th, 2024.
Compass Point gave a rating of “Neutral” to RLJ, setting the target price at $10 in the report published on August 05th of the current year.
RLJ Trading at -1.92% 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 -26.63% of loss for the given period.
Volatility was left at 1.89%, however, over the last 30 days, the volatility rate increased by 1.81%, as shares sank -2.57% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -1.09% lower at present.
During the last 5 trading sessions, RLJ rose by +1.00%, which changed the moving average for the period of 200-days by -20.96% in comparison to the 20-day moving average, which settled at $9.14. In addition, RLJ Lodging Trust saw -22.44% 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:
- 0.17 for the present operating margin
- 0.18 for the gross margin
The net margin for RLJ Lodging Trust stands at 0.05. The total capital return value is set at 0.05. Equity return is now at value 2.82, with 1.35 for asset returns.
Based on RLJ Lodging Trust (RLJ), the company’s capital structure generated 0.51 points at debt to capital in total, while cash flow to debt ratio is standing at 0.13. The debt to equity ratio resting at 1.03. The interest coverage ratio of the stock is 2.38.
Currently, EBITDA for the company is 329.53 million with net debt to EBITDA at 5.94. When we switch over and look at the enterprise to sales, we see a ratio of 2.48. The receivables turnover for the company is 43.6for trailing twelve months and the total asset turnover is 0.27.
Conclusion
In conclusion, RLJ Lodging Trust (RLJ) has seen bad performance in recent times. Analysts have a mixed opinion on the stock, with some rating it as a “buy” and others rating it 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.
