Last Updated: 18 Sep 2024
Executive Summary
Chatham Lodging Trust REIT (CLDT) is a publicly traded REIT focused on investing in extended stay and select service hotels of premium brands. The company has a market capitalization of $428.7 million and is currently trading at $8.49 per share. CLDT has a strong track record of financial performance, with positive EBITDA and operating margins. However, the company has recently reported negative EPS and a low dividend yield. Analysts have a mixed outlook on CLDT, with some recommending a buy and others recommending a hold.
Company Overview
Chatham Lodging Trust REIT was founded in 2006 and is headquartered in West Palm Beach, Florida. The company owns and operates a portfolio of 161 hotels in 34 states and the District of Columbia. CLDT's hotels are primarily located in urban and suburban areas and are operated under a variety of brands, including Hilton, Marriott, and Hyatt.
Fundamental Analysis
CLDT has a strong financial profile, with positive EBITDA and operating margins. The company's EBITDA for the latest quarter was $89.1 million, and its operating margin was 16.3%. However, CLDT has recently reported negative EPS and a low dividend yield. The company's EPS for the latest quarter was -$0.17, and its dividend yield is 0.0337%.
CLDT's financial performance is driven by the demand for its hotels. The company's hotels are located in desirable locations and are operated under well-known brands. This has resulted in strong occupancy rates and average daily rates. CLDT's financial performance is also supported by its cost-cutting initiatives. The company has been able to reduce its operating expenses by implementing a variety of measures, including energy efficiency upgrades and employee training.
Technical Analysis
CLDT's stock price has been trading in a range between $7.54 and $11.07 over the past 52 weeks. The stock is currently trading near the bottom of its range. The 50-day moving average is $8.42, and the 200-day moving average is $9.44. The relative strength index (RSI) is 37.44, which indicates that the stock is oversold.
Short Term Outlook
The short-term outlook for CLDT is mixed. The company's financial performance is strong, but its stock price is trading near the bottom of its range. The RSI indicates that the stock is oversold, which could lead to a short-term bounce. However, the company's negative EPS and low dividend yield could weigh on the stock price in the short term.
Long Term Outlook
The long-term outlook for CLDT is positive. The company's strong financial profile and cost-cutting initiatives should support its long-term growth. The demand for CLDT's hotels is expected to remain strong, as the economy continues to recover. The company's stock price could appreciate over the long term as the company continues to execute its growth strategy.
Analyst Recommendations
Analysts have a mixed outlook on CLDT. Some analysts recommend a buy, while others recommend a hold. The average analyst target price for CLDT is $10.75.
