Wolfe Research has recently reduced RLJ Lodging Trust (RLJ) stock to Peer Perform rating, as announced on September 26, 2024, according to Finviz. Earlier, on September 13, 2024, Wells Fargo had reduced the stock from a Equal Weight to Underweight, setting a price target of $9 for RLJ stock. Compass Point also reduced Neutral rating with a price target of $10. Additionally, Wolfe Research initiated Outperform rating on January 10, 2024, with a target price of $15. Oppenheimer analysts, in their report published on November 28, 2023, also raised Outperform rating for RLJ Lodging Trust’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.
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RLJ Lodging Trust (RLJ) Stock Trading Recap
On Monday, RLJ Lodging Trust (RLJ) stock saw a decline, ending the day at $9.18 which represents a decrease of $-0.24 or -2.55% from the prior close of $9.42. The stock opened at $9.25 and touched a low of $9.05 during the day, reaching a high of $9.29. The volume of shares traded was 1.89 million exceeding the average volume of 1.54 million.
RLJ Stock Performance and Moving Averages
In recent trading, RLJ Lodging Trust (RLJ) stock price has shown some volatility, fluctuating -6.52% over the last five trades and -2.24% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by -21.47%, and it has plunged by -2.24% in the previous three months. Currently, RLJ is trading at -1.87%, -1.48%, and -13.44% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.
As of the latest trading close, RLJ, a Real Estate sector stock, is trading -25.91% below its 52-week high but remains 4.44% above its 52-week low. The Average True Range (ATR) (14 days) of 0.25 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.
RLJ Lodging Trust’s Profitability and Valuation Ratios
RLJ Lodging Trust’s profitability metrics reveal strong financial health. The company currently boasts an operating margin of 10.38% and a profit margin of 3.01%, with a gross margin of -21.47%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.
In terms of valuation, RLJ Lodging Trust’s market capitalization stands at $1.42 billion. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. The stock’s price-to-earnings (P/E) ratio is 35.12, assessing the company’s valuation relative to its earnings. The forward P/E ratio, which uses projected earnings for the next financial year, is 49.86. Additionally, the Price-to-Sales Ratio is 1.06, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 0.72, comparing the market value to the company’s book value.
Understanding Insider Trading
Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 2.87% of RLJ Lodging Trust (RLJ)’s shares, while financial institutions hold 91.78%.
Notable insider trades include Collins Arthur Reginald, Director at RLJ Lodging Trust (RLJ), who sold 25000 shares on Dec 22 ’23, at $11.92 each, totaling $0.30 million. On Nov 10 ’23, DAVIS NATHANIEL A, Director, sold 39594 shares for $9.87 each, amounting to $0.39 million.
