Ashford Hospitality Trust (NYSE:AHT) Stock Turns Very Volatile: How to Trade Now?
After having struggled for many weeks, the Ashford Hospitality Trust (NYSE:AHT) stock managed to make a bit of a recovery yesterday. The stock jumped by 11% yesterday to break a losing streak but at the same time investors should note that it is still down by as much as 60% over the past month.
However, it might be more important for investors to take a look at the reason behind the poor stock performance. The stock tanked after the company announced that it was going to go for a 1 for 10 reverse stock split.
It came as a major blow for investors since after the split, each block of 10 shares owned by an investors is going to be worth one share. More often than not, companies go for such measures when they need to prop up the stock price after continued poor performance and in that regard, Ashford Hospitality Trust was no exception.
Rob Hays, who is the Chief Executive Officer of the company, stated that since the stock had been trading below $5 levels for quite some time, it had become difficult for some funds to keep the company’s stock in their portfolios. Hence, Ashford Hospitality Trust needed to go for the reverse split option.
Market Reaction:
On Wednesday, AHT stock soared 11% at $2.15 with more than 51.61 million shares, compared to its average volume of 38.35 million shares. The stock had moved within a range of $2.0000 – 2.2650 after opening the trade at $2.03. Over the past 52-week, the stock has been trading within a range of $1.2700 – 8.5100.
