Ashford Hospitality Trust (NYSE:AHT) Stock Fell 22% Last Week: Will it Rebound This Week?

The Ashford Hospitality Trust (NYSE:AHT) stock has been suffering from a selloff ever since it announced that it was going to have a 1 for 10 reverse stock split. This past Friday the stock fell by 8% and that took its losses for the entire week to as much as 22%.

The stock split, which is going to go into effect from today, was no welcomed by investors and it remains to be seen how the stock performs today. However, the Chief Executive Officer and President of the company Rob Hays stated earlier on this month that the decision to go for a reverse stock split was made in order to make the Ashford Hospitality stock more shareholder friendly.

He stated that the reverse stock split is going to help in propping up the share price over the $5 a share mark and will help institutions in holding on to the stock. Many institutions do not hold shares which go below that particular mark. Later on, on July 6, the company announced that for the month of June 2021, it generated RevPAR of as much as $91.27 and that represented a year on year rise of as much as 256%.

Market Reaction:

On Friday, AHT stock fell 9.15% at $1.82 with more than 25.30 million shares, compared to its average volume of 38.88 million shares. The stock has moved within a range of $1.82 – 2.03 after opening the trade at $2.03. Over the past 52-week, the stock has been trading within a range of $1.27 – 7.79.