Pebblebrook Hotel Trust (PEB) shares are trading at lower $12.77 and the avg recommendation for the stock is Hold, while the current analyst price target stands at $13.08.
To add more color to this target, the company’s high over the last year is $27.75 and the low is $5.39. Over the last 52 weeks, PEB is down -51.99% while the S&P 500 is up 18.31%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, PEB reported a profit of $-110.69 million. Pebblebrook Hotel Trust also saw revenues decrease to $22.59 million. In addition, PEB has free cash flow of -$176.22 million as of 06-2020. The company’s EBITDA came in at -$51.59 million which compares well with its peers.
PEB booked profit margins of -6.60%, its Return on Equity (ROE) is -2.00%, and its Return on Assets is -1.10%. All told, it is clear that, PEB needs to be on your watchlist.
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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. PEB has a short ratio of 5.75 and outstanding shares of 130.56M.
PEB has seen increased volume after this news and investors are putting their support behind the value proposition. Traders will also note the company’s earnings per share came in at -0.55. Investors should also keep an eye on sector updates as PEB has historically followed its peers on positive news.
All told, Pebblebrook Hotel Trust PEB has strung together solid data and demonstrated underlying fundamentals. At its current valuation, PEB represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.
Pebblebrook Hotel Trust PEB is now commanding a market cap of 1.67B and a float of 128.85M. PEB is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of PEB stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in PEB, either long or short, and we have not been compensated for this article.