Chatham Lodging Stock (NYSE:CLDT), Trade Ideas

Chatham Lodging

Chatham Lodging Trust is a U.S.-based real estate investment trust that invests in upscale extended-stay hotels. The firm operates across various states in the U.S., including California, New York, Texas, Florida, Minnesota, Massachusetts, and Pennsylvania among others. Substantially all of the company's assets are held and operated by its Operating Partnership, Chatham Lodging, LP. Chatham Lodging LP and its subsidiaries lease the overall company's hotels. The firm operates through a single segment because of the similar economic characteristics of its hotels. Chatham's revenue streams include Room, Food and beverage, and Other. Room comprises the majority of total revenue. Chatham's hotels operate under brands which include, Hilton, Marriott, and Hyatt.

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Chatham Lodging Trust (REIT) Common Shares of Beneficial Interest

Chatham Lodging Trust

Chatham Lodging Trust (REIT) 6.625% Series A Cumulative Redeemable Preferred Shares of Beneficial Interest

Barclays analyst Anthony Powell maintains Chatham Lodging (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CLDT#NYSE">CLDT</a>) with a Overweight and lowers the price target from $13 to $12.

News

Price Target

Analyst Ratings

Barclays Maintains Overweight on Chatham Lodging, Lowers Price Target to $12

After three difficult years beginning with the onset of the COVID-19 pandemic, hotel real estate investment trusts (REITs) are headed to better times. Earnings are improving and hotels have been slowly but surely increasing dividends that were either cut or suspended in 2020.
Hotel REITs, like many other REIT subsectors, touched 2023 lows at the end of October. But since then, many in the hotel subsector have been on fire, with total gains among several of them between 25% and 50%.
This week, several hotel REITs reported fourth-quarter 2023 operating results that beat the estimates on both funds from operations (FFO) and revenue. Take a look at five hotel REITs that caught analysts by surprise and could have more room to appreciate:
Park Hotels &amp; Resorts Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/PK#NYSE">PK</a>) is a Tysons, Virginia-based hotel REIT with more than 26,000 rooms in 43 hotels and resorts in 25 prime U.S. markets with high barriers to entry. Hawaii properties account for 36% of its portfolio. Park Hotels is a small-cap stock with a market cap of $3.35 billion.
Park Hotels was established as an independent company in January 2017 following its spinoff from Hilton Hotels &amp; Resorts. In September 2019, Park acquired Chesapeake Lodging Trust to add premium-brand hotels and resorts in prime markets such as Miami, Boston, Los Angeles and San Francisco.
On Feb. 27, Park Hotels reported its fourth-quarter operating results. Adjusted FFO (AFFO) of $0.52 per share beat the analyst estimate of $0.49 per share and was 15.56% above AFFO of $0.45 per share in the fourth quarter of 2022. Revenue of $657 million beat the estimate of $648.88 million but was slightly below revenue of $665 million in the fourth quarter of 2022.
Park Hotels also expects full-year (FY)2024 FFO in a range between $2.02-$2.22 per share. That would give it a midpoint of $2.12 per share, above the estimate of $2.10 per share.&nbsp;
Chatham Lodging Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CLDT#NYSE">CLDT</a>) is a West Palm Beach, Florida-based hotel REIT that primarily invests in upscale, extended-stay and premium branded, select-service hotels in major U.S. markets. Chatham's portfolio consists of 38 hotels with 5,735 rooms across 16 states and Washington, D.C.
On Feb. 27, Chatham Lodging reported its fourth-quarter operating results. AFFO of $0.19 per share beat the consensus estimate of $0.15 per share by 26.67% but was slightly below AFFO of $0.20 per share in the fourth quarter of 2022. Revenue of $72.28 million beat the estimate of $70.69 million and topped the revenue of $70.32 million in the fourth quarter of 2022.
But Chatham may fall a bit short on FY 2024 guidance. It expects AFFO of $0.10-$0.14 per share, but the Street was expecting $0.16 per share.
RLJ Lodging Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RLJ#NYSE">RLJ</a>) is a Bethesda, Maryland-based hotel REIT that owns 96 premium-branded hotels with approximately 21,200 rooms across 23 states and Washington, D.C. Its brands include Marriott, Hilton Garden Inn, Embassy Suites and Hyatt.
On Feb. 26, RLJ Lodging reported its fourth-quarter operating results. FFO of $0.34 per share beat the estimates of $0.33 per share and was in line with FFO in the fourth quarter of 2022. Revenue of $319.71 million beat the estimates of $314.28 million and was above revenue in the fourth quarter of 2022 of $302.19 million.
RLJ also came in just shy of expectations on FY 2024 FFO, with a range of $1.55-$1.75 per share, with a midpoint of $1.65 per share. The Street was looking for $1.67 per share.
Sunstone Hotel Investors Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SHO#NYSE">SHO</a>) is an Aliso Viejo, California-based hotel REIT with 6,675 rooms in 14 hotels on both U.S. coasts and Hawaii. Its hotel brands include Hyatt Regency, Marriott, Hilton and Four Seasons.
On Feb. 23, Sunstone Hotel Investors reported its fourth-quarter operating results. FFO of $0.19 per share beat the estimate of $0.17 per share but was below $0.26 per share FFO in the fourth quarter of 2022. Revenue of $219.22 million was ahead of estimates of $216.84 million, but below revenue of $244.41 million in the fourth quarter of 2022.
Sunstone also announced its FY 2024 AFFO in a range from $0.78-$0.90. A Street estimate was not available.&nbsp;
Ryman Hospitality Properties Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RHP#NYSE">RHP</a>) is a Nashville, Tennessee-based hotel REIT that specializes in large upscale convention center resorts and entertainment venues.
Its portfolio of nine hotels includes over 11,400 rooms and almost 3 million square feet of meeting spaces. Ryman also has a 70% controlling ownership interest in Opry Entertainment Group, which owns the Grand Ole Opry and other entertainment attractions.
On Feb. 22, Ryman Hospitality reported its fourth-quarter operating results. FFO of $2.08 per share beat the estimate of $1.97 per share. Revenue of $633.06 million was ahead of estimates for $622.44 and was an 11.28% increase from revenue of $568.88 million in the fourth quarter of 2022.
Full-year 2024 AFFO guidance of $7.60-$8.20 per share was announced, with a midpoint of $7.90 per share, well below the Street's estimate of $8.14 per share.
Over the past four months, Ryman Hospitality has surged 44.8%, from a low of $81.09 to its recent close at $117.44. Even with guidance coming in shy, there could still be some rally to come in Ryman shares.
Explore Opportunities Beyond REITs
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Guidance

Chatham Lodging Trust Expects Q1 Adjusted FFO Per Share Of $0.10-$0.14, Est $0.16

Chatham Lodging (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CLDT#NYSE">CLDT</a>) reported quarterly AFFO&nbsp;of $0.19 per share which beat the analyst consensus estimate of $0.15 by 26.67 percent. This is a 5 percent decrease over AFFO&nbsp;of $0.20 per share from the same period last year. The company reported quarterly sales of $72.28 million which beat the analyst consensus estimate of $70.69 million by 2.25 percent. This is a 2.78 percent increase over sales of $70.32 million the same period last year.

Earnings

Chatham Lodging Q4 AFFO Per Share $0.19 Beats $0.15 Estimate, Sales $72.28M Beat $70.69M Estimate

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Earnings Scheduled For February 27, 2024

Disclosed in the latest SEC filing, a significant insider purchase on January 16, involves Isaacs Ethel Williams, Director at Chatham Lodging (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CLDT#NYSE">CLDT</a>).
What Happened: Williams's recent purchase of 6,504 shares of Chatham Lodging, disclosed in a Form 4 filing with the <a href="https://www.sec.gov/Archives/edgar/data/0001476045/000147604524000007//Archives/edgar/data/1476045/000147604524000007/0001476045-24-000007-index.htm">U.S. Securities and Exchange Commission</a> on Tuesday, reflects confidence in the company's potential. The total transaction value is $69,983.
Chatham Lodging's shares are actively trading at $10.49, experiencing a down of 0.0% during Wednesday's morning session.
<h3>All You Need to Know About Chatham Lodging</h3>
Chatham Lodging Trust is a U.S.-based real estate investment trust that invests in upscale extended-stay hotels. The firm operates across various states in the U.S., including California, New York, Texas, Florida, Minnesota, Massachusetts, and Pennsylvania among others. Substantially all of the company's assets are held and operated by its Operating Partnership, Chatham Lodging, LP. Chatham Lodging LP and its subsidiaries lease the overall company's hotels. The firm operates through a single segment because of the similar economic characteristics of its hotels. Chatham's revenue streams include Room, Food and beverage, and Other. Room comprises the majority of total revenue. Chatham's hotels operate under major brands, including Hilton, Marriott, and Hyatt.
<h3>Breaking Down Chatham Lodging's Financial Performance</h3>
Revenue Challenges: Chatham Lodging's revenue growth over 3 months faced difficulties. As of 30 September, 2023, the company experienced a decline of approximately -1.3%. This indicates a decrease in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Real Estate sector.
Interpreting Earnings Metrics:
<ul>
<li>
Gross Margin: The company shows a low gross margin of 37.8%, indicating concerns regarding cost management and overall profitability relative to its industry counterparts.
</li>
<li>
Earnings per Share (EPS): With an EPS below industry norms, Chatham Lodging exhibits below-average bottom-line performance with a current EPS of 0.11.
</li>
</ul>
Debt Management: Chatham Lodging's debt-to-equity ratio is below the industry average at 0.64, reflecting a lower dependency on debt financing and a more conservative financial approach.
Insights into Valuation Metrics:
<ul>
<li>
Price to Earnings (P/E) Ratio: Chatham Lodging's stock is currently priced at a premium level, as reflected in the higher-than-average P/E ratio of 349.67.
</li>
<li>
Price to Sales (P/S) Ratio: The Price to Sales ratio is 1.66, which is lower than the industry average. This suggests a possible undervaluation based on sales performance.
</li>
<li>
EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation &amp; Amortization): With a below-average EV/EBITDA ratio of 10.19, Chatham Lodging presents an opportunity for value investors. This lower valuation may attract investors seeking undervalued opportunities.
</li>
</ul>
Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.
<a href="https://www.schwab.com/brokerage?aff=XEC">Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.</a>
<h3>The Importance of Insider Transactions</h3>
It's important to note that insider transactions alone should not dictate investment decisions, but they can provide valuable insights.
Within the legal framework, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as per Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.
The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.
However, insider sells may not always signal a bearish view and can be influenced by various factors.
<h3>Transaction Codes Worth Your Attention</h3>
Examining transactions, <a href="https://www.benzinga.com/money/investing-tools">investors</a> often concentrate on those unfolding in the open market, meticulously detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C indicates the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
<a href="https://www.benzinga.com/sec/insider-trades/search/index?company_cik=0001476045">Check Out The Full List Of Chatham Lodging's Insider Trades.</a>
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Insider Trades

Trading Ideas

Director Of Chatham Lodging Purchased $69K In Stock

In a recent SEC filing, it was revealed that ROLF RUHFUS, Director at Chatham Lodging (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CLDT#NYSE">CLDT</a>), made a noteworthy insider purchase on January 16,.
What Happened: RUHFUS's recent move, as outlined in a Form 4 filing with the <a href="https://www.sec.gov/Archives/edgar/data/0001476045/000147604524000008//Archives/edgar/data/1476045/000147604524000008/0001476045-24-000008-index.htm">U.S. Securities and Exchange Commission</a> on Tuesday, involves purchasing 6,504 shares of Chatham Lodging. The total transaction value is $69,983.
As of Wednesday morning, Chatham Lodging shares are down by 0.0%, currently priced at $10.49.
<h3>Delving into Chatham Lodging's Background</h3>
Chatham Lodging Trust is a U.S.-based real estate investment trust that invests in upscale extended-stay hotels. The firm operates across various states in the U.S., including California, New York, Texas, Florida, Minnesota, Massachusetts, and Pennsylvania among others. Substantially all of the company's assets are held and operated by its Operating Partnership, Chatham Lodging, LP. Chatham Lodging LP and its subsidiaries lease the overall company's hotels. The firm operates through a single segment because of the similar economic characteristics of its hotels. Chatham's revenue streams include Room, Food and beverage, and Other. Room comprises the majority of total revenue. Chatham's hotels operate under major brands, including Hilton, Marriott, and Hyatt.
<h3>Chatham Lodging's Economic Impact: An Analysis</h3>
Revenue Challenges: Chatham Lodging's revenue growth over 3 months faced difficulties. As of 30 September, 2023, the company experienced a decline of approximately -1.3%. This indicates a decrease in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Real Estate sector.
Interpreting Earnings Metrics:
<ul>
<li>
Gross Margin: With a low gross margin of 37.8%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry peers.
</li>
<li>
Earnings per Share (EPS): Chatham Lodging's EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of 0.11.
</li>
</ul>
Debt Management: Chatham Lodging's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.64.
In-Depth Valuation Examination:
<ul>
<li>
Price to Earnings (P/E) Ratio: Chatham Lodging's stock is currently priced at a premium level, as reflected in the higher-than-average P/E ratio of 349.67.
</li>
<li>
Price to Sales (P/S) Ratio: The P/S ratio of 1.66 is lower than the industry average, implying a discounted valuation for Chatham Lodging's stock in relation to sales performance.
</li>
<li>
EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation &amp; Amortization): Indicated by a lower-than-industry-average EV/EBITDA ratio of 10.19, the company suggests a potential undervaluation, which might be advantageous for value-focused investors.
</li>
</ul>
Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.
<a href="https://www.schwab.com/brokerage?aff=XEC">Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.</a>
<h3>Why Insider Activity Matters in Finance</h3>
Insider transactions, although significant, should be considered within the larger context of market analysis and trends.
In legal terms, an "insider" refers to any officer, director, or beneficial owner of more than ten percent of a company's equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.
When a company insider makes a new purchase, that is an indication that they expect the stock to rise.
Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down. 
<h3>Understanding Crucial Transaction Codes</h3>
<a href="https://www.benzinga.com/money/investing-tools">Investors</a> prefer focusing on transactions that take place in the open market, indicated in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S indicates a sale. Transaction code C indicates the conversion of an option, and transaction code A indicates grant, award or other acquisition of securities from the company.
<a href="https://www.benzinga.com/sec/insider-trades/search/index?company_cik=0001476045">Check Out The Full List Of Chatham Lodging's Insider Trades.</a>
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Director At Chatham Lodging Buys $69K of Stock

Edwin Brewer JR, Director at Chatham Lodging (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CLDT#NYSE">CLDT</a>), reported an insider buy on January 16, according to a new SEC filing. 
What Happened: A Form 4 filing with the <a href="https://www.sec.gov/Archives/edgar/data/0001476045/000147604524000009//Archives/edgar/data/1476045/000147604524000009/0001476045-24-000009-index.htm">U.S. Securities and Exchange Commission</a> on Tuesday unveiled that JR made a notable purchase of 6,504 shares of Chatham Lodging, valuing at $69,983.
The latest update on Wednesday morning shows Chatham Lodging shares down by 0.0%, trading at $10.49.
<h3>Get to Know Chatham Lodging Better</h3>
Chatham Lodging Trust is a U.S.-based real estate investment trust that invests in upscale extended-stay hotels. The firm operates across various states in the U.S., including California, New York, Texas, Florida, Minnesota, Massachusetts, and Pennsylvania among others. Substantially all of the company's assets are held and operated by its Operating Partnership, Chatham Lodging, LP. Chatham Lodging LP and its subsidiaries lease the overall company's hotels. The firm operates through a single segment because of the similar economic characteristics of its hotels. Chatham's revenue streams include Room, Food and beverage, and Other. Room comprises the majority of total revenue. Chatham's hotels operate under major brands, including Hilton, Marriott, and Hyatt.
<h3>Unraveling the Financial Story of Chatham Lodging</h3>
Revenue Growth: Chatham Lodging's revenue growth over a period of 3 months has faced challenges. As of 30 September, 2023, the company experienced a revenue decline of approximately -1.3%. This indicates a decrease in the company's top-line earnings. When compared to others in the Real Estate sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Key Profitability Indicators:
<ul>
<li>
Gross Margin: The company shows a low gross margin of 37.8%, indicating concerns regarding cost management and overall profitability relative to its industry counterparts.
</li>
<li>
Earnings per Share (EPS): Chatham Lodging's EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of 0.11.
</li>
</ul>
Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.64.
Evaluating Valuation:
<ul>
<li>
Price to Earnings (P/E) Ratio: A higher-than-average P/E ratio of 349.67 suggests caution, as the stock may be overvalued in the eyes of investors.
</li>
<li>
Price to Sales (P/S) Ratio: The P/S ratio of 1.66 is lower than the industry average, implying a discounted valuation for Chatham Lodging's stock in relation to sales performance.
</li>
<li>
EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation &amp; Amortization): The company's EV/EBITDA ratio 10.19 is below the industry average, indicating that it may be relatively undervalued compared to peers.
</li>
</ul>
Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.
<a href="https://www.schwab.com/brokerage?aff=XEC">Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.</a>
<h3>Delving Into the Significance of Insider Transactions</h3>
Insider transactions should be considered alongside other factors when making investment decisions, as they can offer important insights.
In the realm of legality, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities under Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are required to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.
Notably, when a company insider makes a new purchase, it is considered an indicator of their positive expectations for the stock.
Conversely, insider sells may not necessarily signal a bearish stance on the stock and can be motivated by various factors.
<h3>The Insider's Guide to Important Transaction Codes</h3>
Examining transactions, <a href="https://www.benzinga.com/money/investing-tools">investors</a> often concentrate on those unfolding in the open market, meticulously detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C indicates the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
<a href="https://www.benzinga.com/sec/insider-trades/search/index?company_cik=0001476045">Check Out The Full List Of Chatham Lodging's Insider Trades.</a>
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Chatham Lodging Recent Insider Activity

Disclosed in the latest SEC filing, a significant insider purchase on January 16, involves Elizabeth Mary Higgins, Board Member at Chatham Lodging (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CLDT#NYSE">CLDT</a>).
What Happened: In a significant move reported in a Form 4 filing with the <a href="https://www.sec.gov/Archives/edgar/data/0001476045/000147604524000010//Archives/edgar/data/1476045/000147604524000010/0001476045-24-000010-index.htm">U.S. Securities and Exchange Commission</a> on Tuesday, Higgins purchased 6,504 shares of Chatham Lodging, demonstrating confidence in the company's growth potential. The total value of the transaction stands at $69,983.
Tracking the Wednesday's morning session, Chatham Lodging shares are trading at $10.49, showing a down of 0.0%.
<h3>All You Need to Know About Chatham Lodging</h3>
Chatham Lodging Trust is a U.S.-based real estate investment trust that invests in upscale extended-stay hotels. The firm operates across various states in the U.S., including California, New York, Texas, Florida, Minnesota, Massachusetts, and Pennsylvania among others. Substantially all of the company's assets are held and operated by its Operating Partnership, Chatham Lodging, LP. Chatham Lodging LP and its subsidiaries lease the overall company's hotels. The firm operates through a single segment because of the similar economic characteristics of its hotels. Chatham's revenue streams include Room, Food and beverage, and Other. Room comprises the majority of total revenue. Chatham's hotels operate under major brands, including Hilton, Marriott, and Hyatt.
<h3>Chatham Lodging: A Financial Overview</h3>
Revenue Growth: Chatham Lodging's revenue growth over a period of 3 months has faced challenges. As of 30 September, 2023, the company experienced a revenue decline of approximately -1.3%. This indicates a decrease in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Real Estate sector.
Interpreting Earnings Metrics:
<ul>
<li>
Gross Margin: The company shows a low gross margin of 37.8%, indicating concerns regarding cost management and overall profitability relative to its industry counterparts.
</li>
<li>
Earnings per Share (EPS): Chatham Lodging's EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of 0.11.
</li>
</ul>
Debt Management: With a below-average debt-to-equity ratio of 0.64, Chatham Lodging adopts a prudent financial strategy, indicating a balanced approach to debt management.
Valuation Overview:
<ul>
<li>
Price to Earnings (P/E) Ratio: Chatham Lodging's current Price to Earnings (P/E) ratio of 349.67 is higher than the industry average, indicating that the stock may be overvalued according to market sentiment.
</li>
<li>
Price to Sales (P/S) Ratio: The P/S ratio of 1.66 is lower than the industry average, implying a discounted valuation for Chatham Lodging's stock in relation to sales performance.
</li>
<li>
EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation &amp; Amortization): Chatham Lodging's EV/EBITDA ratio, lower than industry averages at 10.19, indicates attractively priced shares.
</li>
</ul>
Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.
<a href="https://www.schwab.com/brokerage?aff=XEC">Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.</a>
<h3>Why Insider Transactions Are Key in Investment Decisions</h3>
Insightful as they may be, insider transactions should be considered alongside a thorough examination of other investment criteria.
In the context of legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as outlined by Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are obligated to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.
Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.
Despite insider sells not always signaling a bearish sentiment, they can be driven by various factors.
<h3>Exploring Key Transaction Codes</h3>
Surveying the realm of stock transactions, <a href="https://www.benzinga.com/money/investing-tools">investors</a> often give prominence to those unfolding in the open market, systematically detailed in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
<a href="https://www.benzinga.com/sec/insider-trades/search/index?company_cik=0001476045">Check Out The Full List Of Chatham Lodging's Insider Trades.</a>
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Board Member Of Chatham Lodging Makes $69K Buy

Disclosed in the latest SEC filing, a significant insider purchase on January 16, involves Robert Perlmutter, Board Member at Chatham Lodging (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CLDT#NYSE">CLDT</a>).
What Happened: Perlmutter's recent move, as outlined in a Form 4 filing with the <a href="https://www.sec.gov/Archives/edgar/data/0001476045/000147604524000011//Archives/edgar/data/1476045/000147604524000011/0001476045-24-000011-index.htm">U.S. Securities and Exchange Commission</a> on Tuesday, involves purchasing 11,150 shares of Chatham Lodging. The total transaction value is $119,974.
As of Wednesday morning, Chatham Lodging shares are down by 0.0%, currently priced at $10.49.
<h3>Unveiling the Story Behind Chatham Lodging</h3>
Chatham Lodging Trust is a U.S.-based real estate investment trust that invests in upscale extended-stay hotels. The firm operates across various states in the U.S., including California, New York, Texas, Florida, Minnesota, Massachusetts, and Pennsylvania among others. Substantially all of the company's assets are held and operated by its Operating Partnership, Chatham Lodging, LP. Chatham Lodging LP and its subsidiaries lease the overall company's hotels. The firm operates through a single segment because of the similar economic characteristics of its hotels. Chatham's revenue streams include Room, Food and beverage, and Other. Room comprises the majority of total revenue. Chatham's hotels operate under major brands, including Hilton, Marriott, and Hyatt.
<h3>Chatham Lodging's Economic Impact: An Analysis</h3>
Negative Revenue Trend: Examining Chatham Lodging's financials over 3 months reveals challenges. As of 30 September, 2023, the company experienced a decline of approximately -1.3% in revenue growth, reflecting a decrease in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Real Estate sector.
Insights into Profitability:
<ul>
<li>
Gross Margin: The company shows a low gross margin of 37.8%, indicating concerns regarding cost management and overall profitability relative to its industry counterparts.
</li>
<li>
Earnings per Share (EPS): Chatham Lodging's EPS reflects a decline, falling below the industry average with a current EPS of 0.11.
</li>
</ul>
Debt Management: Chatham Lodging's debt-to-equity ratio is below the industry average at 0.64, reflecting a lower dependency on debt financing and a more conservative financial approach.
Financial Valuation:
<ul>
<li>
Price to Earnings (P/E) Ratio: Chatham Lodging's current Price to Earnings (P/E) ratio of 349.67 is higher than the industry average, indicating that the stock may be overvalued according to market sentiment.
</li>
<li>
Price to Sales (P/S) Ratio: With a P/S ratio of 1.66 below industry standards, the stock shows potential undervaluation, making it an appealing investment option for those focusing on sales performance.
</li>
<li>
EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation &amp; Amortization): With an EV/EBITDA ratio lower than industry averages at 10.19, Chatham Lodging could be considered undervalued.
</li>
</ul>
Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.
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<h3>The Impact of Insider Transactions on Investments</h3>
Insider transactions serve as a piece of the puzzle in investment decisions, rather than the entire picture.
Exploring the legal landscape, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated by Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and major hedge funds. These insiders are required to report their transactions through a Form 4 filing, which must be submitted within two business days of the transaction.
Highlighted by a company insider's new purchase, there's a positive anticipation for the stock to rise.
But, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.
<h3>Deciphering Transaction Codes in Insider Filings</h3>
Digging into the details of stock transactions, <a href="https://www.benzinga.com/money/investing-tools">investors</a> frequently turn their attention to those taking place in the open market, as outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
<a href="https://www.benzinga.com/sec/insider-trades/search/index?company_cik=0001476045">Check Out The Full List Of Chatham Lodging's Insider Trades.</a>
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Smart Money Move: Robert Perlmutter Grabs $119K Worth Of Chatham Lodging Stock

In a recent SEC filing, it was revealed that David Grissen, Board Member at Chatham Lodging (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CLDT#NYSE">CLDT</a>), made a noteworthy insider purchase on January 16,.
What Happened: Grissen's recent purchase of 6,504 shares of Chatham Lodging, disclosed in a Form 4 filing with the <a href="https://www.sec.gov/Archives/edgar/data/0001476045/000147604524000012//Archives/edgar/data/1476045/000147604524000012/0001476045-24-000012-index.htm">U.S. Securities and Exchange Commission</a> on Tuesday, reflects confidence in the company's potential. The total transaction value is $69,983.
As of Wednesday morning, Chatham Lodging shares are down by 0.0%, currently priced at $10.49.
<h3>About Chatham Lodging</h3>
Chatham Lodging Trust is a U.S.-based real estate investment trust that invests in upscale extended-stay hotels. The firm operates across various states in the U.S., including California, New York, Texas, Florida, Minnesota, Massachusetts, and Pennsylvania among others. Substantially all of the company's assets are held and operated by its Operating Partnership, Chatham Lodging, LP. Chatham Lodging LP and its subsidiaries lease the overall company's hotels. The firm operates through a single segment because of the similar economic characteristics of its hotels. Chatham's revenue streams include Room, Food and beverage, and Other. Room comprises the majority of total revenue. Chatham's hotels operate under major brands, including Hilton, Marriott, and Hyatt.
<h3>Financial Milestones: Chatham Lodging's Journey</h3>
Revenue Growth: Chatham Lodging's revenue growth over a period of 3 months has faced challenges. As of 30 September, 2023, the company experienced a revenue decline of approximately -1.3%. This indicates a decrease in the company's top-line earnings. When compared to others in the Real Estate sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Analyzing Profitability Metrics:
<ul>
<li>
Gross Margin: The company shows a low gross margin of 37.8%, indicating concerns regarding cost management and overall profitability relative to its industry counterparts.
</li>
<li>
Earnings per Share (EPS): With an EPS below industry norms, Chatham Lodging exhibits below-average bottom-line performance with a current EPS of 0.11.
</li>
</ul>
Debt Management: Chatham Lodging's debt-to-equity ratio is below the industry average at 0.64, reflecting a lower dependency on debt financing and a more conservative financial approach.
Valuation Metrics:
<ul>
<li>
Price to Earnings (P/E) Ratio: Chatham Lodging's stock is currently priced at a premium level, as reflected in the higher-than-average P/E ratio of 349.67.
</li>
<li>
Price to Sales (P/S) Ratio: The P/S ratio of 1.66 is lower than the industry average, implying a discounted valuation for Chatham Lodging's stock in relation to sales performance.
</li>
<li>
EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation &amp; Amortization): The company's EV/EBITDA ratio of 10.19 trails industry averages, indicating a potential disparity in market valuation that could be advantageous for investors.
</li>
</ul>
Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.
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<h3>Why Insider Transactions Are Important</h3>
While insider transactions should not be the sole basis for making investment decisions, they can play a significant role in an investor's decision-making process.
Exploring the legal landscape, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated by Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and major hedge funds. These insiders are required to report their transactions through a Form 4 filing, which must be submitted within two business days of the transaction.
Highlighted by a company insider's new purchase, there's a positive anticipation for the stock to rise.
But, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.
<h3>Breaking Down the Significance of Transaction Codes</h3>
<a href="https://www.benzinga.com/money/investing-tools">Investors</a> prefer focusing on transactions that take place in the open market, indicated in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S indicates a sale. Transaction code C indicates the conversion of an option, and transaction code A indicates grant, award or other acquisition of securities from the company.
<a href="https://www.benzinga.com/sec/insider-trades/search/index?company_cik=0001476045">Check Out The Full List Of Chatham Lodging's Insider Trades.</a>
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Chatham Lodging Board Member Makes $69K Stock Purchase

Chatham Lodging Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CLDT#NYSE">CLDT</a>), a hotel real estate investment trust (REIT) focused on investing in upscale, extended-stay hotels and premium-branded, select-service hotels, today announced the closing of the sale of the 180-room Hilton Garden Inn Denver Tech Center for approximately $18 million. An approximate $6 million renovation of the hotel was planned for 2023 but was not completed due to the pending sale. Proceeds from the sale of the hotel will be used for corporate investments and to repay debt.

Asset Sales

Chatham Lodging Trust Announces Sale Of Hilton Garden Inn Denver Tech Center For Approximately $18M

Chatham Lodging (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CLDT#NYSE">CLDT</a>) reported quarterly adjusted funds from operations of $0.40 per share. This is a 20 percent decrease over earnings of $0.50 per share from the same period last year. The company reported quarterly sales of $86.74 million which beat the analyst consensus estimate of $86.29 million by 0.52 percent. This is a 1.31 percent decrease over sales of $87.89 million the same period last year.

Chatham Lodging Q3 AFFO $0.40 Down From $0.50 YoY, Sales $86.74M Beat $86.29M Estimate

Wall Street reporters have a phrase to describe stocks that rise when another stock of the same sector reports excellent news. They write, "Other stocks rose in sympathy." These so-called sympathy stocks don't have any of their own news to propel them higher, but investors surmise that if one stock of a sector reports good news, others of the same ilk may soon follow suit. The result is investors buying shares and pushing the sympathy stock prices higher.
This is especially true when a company is acquired by or merges with another company. Merger fever takes over, and investors then speculate on which companies from the same sector may be next to be purchased at a price well above present levels.
An entire real estate investment trust (REIT) subsector recently rose in sympathy when one of its lower-priced companies was acquired at a substantial premium.
Hersha Hospitality Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HT#NYSE">HT</a>) is a Harrisburg, Pennsylvania-based hotel REIT that owns 25 luxury and lifestyle hotels with 3,811 rooms in larger cities across the U.S.&nbsp;&nbsp;
On Aug. 28, Hersha Hospitality Trust announced it will merge with KSL Capital Partners. Under the terms of the agreement, KSL Capital Partners will acquire all outstanding common shares of Hersha Hospitality for $10 per share in an all-cash transaction of $1.4 billion. This is a 60% premium over Hersha Hospitality's closing price on Aug. 25.
KSL Capital Partners is a private equity fund that invests in the hospitality, recreation, real estate and travel service sectors. It was founded and originally called KSL Recreation in 1992. KSL Capital Partners was formed in 2005, and since then it has invested in over 150 businesses across North America, Europe, Asia and Australia.
Upon announcing the merger, Hersha Hospitality's Executive Chairman Jay H. Shah said, "This transaction provides our shareholders with immediate and certain value at a substantial premium to our public valuation."
Hersha Hospitality stock stormed up 55.89% on the news and closed at $9.79, with most of that gain coming right at the opening bell.  The news triggered buying on several other hotel REITs as well. At the end of the day, five of the best 12 REIT performances were hotel REITs. Take a look at three of them.
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<li>A REIT you've probably never heard of is up 36% over the past two years. <a href="https://www.benzinga.com/real-estate/reit/23/07/33427501/this-reit-youve-never-heard-of-is-crushing-the-market-up-36-over-the-past-two-years">Here's how its unique model is crushing the market.&nbsp;</a></li>
<li>This REIT just teamed up with the company that built Elon Musk's tiny house to develop affordable housing communities. <a href="https://www.benzinga.com/alternative-investments/listing/future-of-housing-fund">Here's how you can be among the first to buy shares.</a></li>
</ul>
Braemar Hotels &amp; Resorts Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BHR#NYSE">BHR</a>) is a Dallas-based REIT that invests in luxury hotels and resorts across the U.S. and in Puerto Rico. Braemar Hotels &amp; Resorts now has investments in 16 properties with 4,184 rooms.
On Aug. 2, Braemar Hotels &amp; Resorts reported mixed second-quarter operating results. Funds from operations (FFO) of $0.20 per share was in line with estimates, but 45.95% below FFO of $0.37 per share in the second quarter of 2022. However, revenue of $186.71 million beat the consensus estimate of $173.87 million and was a 6.76% increase over revenue of $174.89 million in the second quarter of 2022.
On Aug. 14, B. Riley Securities analyst Bryan Maher downgraded Braemar Hotels &amp; Resorts from Buy to Neutral and lowered the price target from $7 to $3.50.&nbsp;
"As it relates to Braemar's luxury resort hotels, we have been writing about RevPAR (revenue per available room) weakening for several quarters," Maher noted.&nbsp;
Following the news on Hersha Hospitality, Braemar Hotels soared 15.57% in one day.
Ashford Hospitality Trust Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AHT#NYSE">AHT</a>) is another Dallas-based hotel REIT that owns 100 hotels with 22,316 rooms across 26 states. It focuses on upscale full-service and select-service hotels. Ashford Hospitality Trust is externally advised by Ashford Inc. (NYSEAMERICAN: AINC).
Ashford Hospitality was one of the worst-performing REITs throughout 2022, with a total return of negative 56.73%. Year to date it has continued to perform poorly, with a total return of negative 30.72%.
On July 10, Ashford Hospitality announced it will surrender ownership of 19 hotels across the U.S. as a means to halt worsening debt. Ashford Hospitality ceased making mortgage payments on two hotels in Newark, New Jersey, one in Oakland, California, and one in Walnut Creek, California. Ashford Hospitality estimates it will save $700 million by not paying these mortgages and then paying down debt on other mortgages.&nbsp;
But on Aug. 2, Ashford Hospitality announced second-quarter FFO of $0.78, beating the consensus estimates by $0.31. Revenue of $375.75 million also beat the Street estimates by $5.72 million and was 7.9% higher than revenue during the second quarter of 2022. RevPAR for all hotels was up 6.7% from the second quarter of 2022 to $144.25.
Following Hersha Hospitality's announcement, Ashford Hospitality was up 10.29% on the day.
Chatham Lodging Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CLDT#NYSE">CLDT</a>) is a West Palm Beach, Florida-based hotel REIT that owns 39 upscale extended-stay hotels with 5,914 rooms across 16 states and Washington, D.C. Its portfolio includes Residence Inn by Marriott and Homewood Suites by Hilton.
On Aug. 2, Chatham Lodging Trust reported its second-quarter operating results. Adjusted funds from operations (AFFO) of $0.43 per share beat the estimate of $0.39 by 10.26% and was above AFFO of $0.41 per share from the second quarter of 2022. Revenue of $84.48 million beat the estimate of $84.06 and was 3.32% above revenue of $81.76 million in the second quarter of 2022. RevPar has improved from $157 to $189 over the past seven months.
Despite a year-to-date loss of over 13%, on the heels of Hersha Hospitality's announcement, Chatham Lodging rose 6.19% on the day.
Other Hotel REITs with notable sympathy price changes were Summit Hotel Properties Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/INN#NYSE">INN</a>), up 6.07%, Xenia Hotels &amp; Resorts Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XHR#NYSE">XHR</a>), up 5.75%, and Diamondrock Hospitality Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DRH#NYSE">DRH</a>), up 5.2%.
Hotel REITs have struggled since early 2020 when COVID-19 first hit the U.S. The growing popularity of Airbnb, Vrbo and other short-term rental properties have put a dent in hotel REIT earnings, especially in a post-COVID era of consumer wariness.
On July 20, analyst Tylor Batory of Oppenheimer &amp; Co. Inc. downgraded Chatham Lodging Trust, along with Braemar Hotels &amp; Resorts and Hersha Hospitality Trust, from Outperform to Perform.
But apparently, merger fever has taken over with the acquisition of Hersha Hospitality, and investors seem to be disregarding the analysts and betting that other hotel REITs are grossly undervalued and primed for lucrative takeovers as well. If nothing else, those stocks clearly outperformed for one day.
Weekly REIT Report: REITs are one of the most misunderstood investment options, making it difficult for investors to spot incredible opportunities until it's too late. Benzinga's in-house real estate research team has been working hard to identify the greatest opportunities in today's market, which you can gain access to for free by signing up for the <a href="https://www.benzinga.com/money/reit-newsletter">Weekly REIT Report.</a>

2023 Guidance
Due to uncertainty surrounding the hotel industry, the company is not providing guidance at this time.

Chatham Lodging Trust Is Not Providing Outlook Due To Uncertainty Surrounding Hotel Industry

Chatham Lodging (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CLDT#NYSE">CLDT</a>) reported quarterly AFFO of $0.43 per share which beat the analyst consensus estimate of $0.39 by 10.26 percent. This is a 4.88 percent increase over AFFO of $0.41 per share from the same period last year. The company reported quarterly sales of $84.48 million which beat the analyst consensus estimate of $84.06 million by 0.49 percent. This is a 3.32 percent increase over sales of $81.76 million the same period last year.

Chatham Lodging Q2 AFFO $0.43 Beats $0.39 Estimate, Sales $84.48M Beat $84.06M Estimate

Chatham Lodging (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CLDT#NYSE">CLDT</a>) has observed the following analyst ratings within the last quarter: 
<table>
<thead>
<tr>
<th></th>
<th align="right">Bullish</th>
<th align="right">Somewhat Bullish</th>
<th align="right">Indifferent</th>
<th align="right">Somewhat Bearish</th>
<th align="right">Bearish</th>
</tr>
</thead>
<tbody>
<tr>
<td>Total Ratings</td>
<td align="right">1</td>
<td align="right">2</td>
<td align="right">1</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>Last 30D</td>
<td align="right">0</td>
<td align="right">1</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>1M Ago</td>
<td align="right">0</td>
<td align="right">1</td>
<td align="right">1</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>2M Ago</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
<tr>
<td>3M Ago</td>
<td align="right">1</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
<td align="right">0</td>
</tr>
</tbody>
</table>
In the last 3 months, 4 analysts have offered 12-month price targets for Chatham Lodging. The company has an average price target of $13.75 with a high of $15.00 and a low of $12.00. 
Below is a summary of how these 4 analysts rated Chatham Lodging over the past 3 months. The greater the number of bullish ratings, the more positive analysts are on the stock and the greater the number of bearish ratings, the more negative analysts are on the stock
<img src="https://www.benzinga.com/files/images/story/2023/1690480850_0.png" alt="price target chart" />
This current average represents a 10.31% decrease from the previous average price target of $15.33. 
<a href="https://www.benzinga.com/quote/CLDT/analyst-ratings?utm_source=Benzinga Insights">Stay up to date on Chatham Lodging analyst ratings.</a>
If you are interested in following small-cap stock news and performance <a href="https://www.benzinga.com/news/small-cap">you can start by tracking it here</a>.
<h1>What Are Analyst Ratings?</h1>
Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.
Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.
If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in <a href="https://benzinga.grsm.io/register174">Benzinga Pro</a>.
This article was generated by Benzinga's automated content engine and reviewed by an editor.

Analyst Ratings for Chatham Lodging

Barclays analyst Anthony Powell maintains Chatham Lodging (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CLDT#NYSE">CLDT</a>) with a Overweight and lowers the price target from $16 to $14.

Barclays Maintains Overweight on Chatham Lodging, Lowers Price Target to $14

When it comes to upgrades, downgrades or changes in price targets, despite their potential to influence markets significantly, the overall predictions of analysts tend to be accurate only about 50% of the time. And that means that just as often, they can be flat-out wrong.
One noteworthy example this year occurred on March 28, when Citigroup maintained its previous downgrade to Sell on SL Green Realty Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SLG#NYSE">SLG</a>) and slashed its price target from $36 to $17. SL Green had already touched a low of $18.21 two trading days prior to Citigroup's announcement, and Citigroup was expecting even more downside.&nbsp;
But contrary to Citigroup's prediction, the stock began to rise and has continued to rally for months with its most recent closing price at $35.10.
One of the differences between Citigroup's call on SL Green and a slew of other recent downgrades is that SL Green had been falling in price for months when the new price target was announced. The reason for the erroneous prediction was that it was late, whereas recent downgrades on real estate investment trusts (REITs) are coming after these issues have been rallying for weeks.
From July 10-17, only three REITs were downgraded. But this past week from July 18-24, there were nine. Perhaps analysts are trying to warn investors that with the bulk of REIT earnings reports coming in soon and the recent rally getting long in the tooth, the downside risk is now greater than the potential reward of beating earnings. The prolonged rally may have already priced in positive expectations and share prices have limited upside at this point.
Another concern about these recent downgrades is that they're not focused on one subsector of the REIT market such as office REITs, but instead, they encompass a wide range of subsectors. The recent downgrades are in hotel, residential, specialty, mortgage, retail and healthcare REITs.
On July 20, analyst Tylor Batory of Oppenheimer &amp; Co. Inc. downgraded not just one, but four hotel REITs from Outperform to Perform: Braemar Hotels &amp; Resorts (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BHR#NYSE">BHR</a>), Chatham Lodging Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CLDT#NYSE">CLDT</a>), Hersha Hospitality Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HT#NYSE">HT</a>) and RLJ Lodging Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RLJ#NYSE">RLJ</a>). Two weeks earlier, Batory maintained Outperform ratings on all four.  
<h2 class="wp-block-heading">Check out:</h2>
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<li>This REIT just teamed up with the company that built Elon Musk's tiny house to develop affordable housing communities. <a href="https://www.benzinga.com/alternative-investments/listing/future-of-housing-fund">Here's how you can be among the first to buy shares.</a></li>
</ul>
Hotel REITs are not the only subsector falling out of favor with analysts. Take a look at some other REITs with huge rallies over the past few months that have been downgraded over the past week.
Arbor Realty Trust Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ABR#NYSE">ABR</a>): On July 24, J.P. Morgan analyst Richard Shane downgraded mortgage REIT (mREIT) Arbor Realty Trust from Neutral to Underweight but raised the price target from $11.50 to $13.50. Arbor Realty has rallied from an April low of $9.77 to its recent closing price of $16.54.
Equinix Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EQIX#NASDAQ">EQIX</a>): On July 21, Wells Fargo Securities analyst Eric Luebchow downgraded specialty REIT Equinix from Overweight to Equal-Weight and maintained the present price target at $810. Equinix rallied from $656 in March to $807 in July.
Independence Realty Trust Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IRT#NYSE">IRT</a>): On July 18, BMO Capital Markets analyst John Kim downgraded residential REIT Independence Realty Trust from Market Perform to Outperform and announced a price target of $19. Independence rallied from $14.29 in March to $17.69 in July.
Essex Property Trust Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ESS#NYSE">ESS</a>): On July 18, Stifel analyst Simon Yarmak downgraded residential REIT Essex Property Trust from Buy to Hold but raised the price target from $245 to $250. Essex Property rallied from $191 in March to $245 in July.
PotlatchDeltic Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/PCH#NASDAQ">PCH</a>): On July 19, RBC Capital Markets analyst Paul Quinn downgraded specialty REIT PotlatchDeltic Corp. from Outperform to Sector Perform and announced a $55 price target. Quinn said that with PotlatchDeltic's share price rising 23% in recent weeks, he sees limited upside from here.
Three other REITs were also downgraded in the previous week. All of them had produced significant rallies since bottoming in March:
Welltower Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/WELL#NYSE">WELL</a>): On July 14, Evercore ISI Group analyst Steve Sakwa downgraded healthcare REIT Welltower from Outperform to In-Line and lowered the price target from $82 to $81.
EPR Properties (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EPR#NYSE">EPR</a>): On July 14, Raymond James analyst RJ Milligan downgraded specialty REIT EPR Properties and announced a $50 price target.
UMH Properties Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/UMH#NYSE">UMH</a>): On July 12, Wolfe Research analyst Keegan Carl downgraded UMH Properties from Outperform to Peer Perform.
How should investors react to these downgrades? While downgrades are certainly concerning, investors are cautioned to perform their own due diligence before purchasing or selling stocks and not to simply rely upon analysts' upgrades or downgrades to make investment decisions.
Weekly REIT Report: REITs are one of the most misunderstood investment options, making it difficult for investors to spot incredible opportunities until it's too late. Benzinga's in-house real estate research team has been working hard to identify the greatest opportunities in today's market, which you can gain access to for free by signing up for the <a href="https://www.benzinga.com/money/reit-newsletter">Weekly REIT Report.</a>
<h2 class="wp-block-heading">Latest private market insights:</h2>
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<li><a href="https://www.benzinga.com/alternative-investments/listing/bam-multifamily-growth-income-fund-iv">Multifamily Growth &amp; Income Fund: Projected 15% &#8211; 20% IRR</a></li>
<li><a href="https://www.benzinga.com/alternative-investments/listing/westboro-tower">104-Unit Mid-Rise Apartment Complex in Ottawa: Projected 19% IRR</a></li>
<li><a href="https://www.benzinga.com/alternative-investments/listing/alpine-note-series-e23">Short-Term Real Estate Note: 6.9% APY over 6-month term</a></li>
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Benzinga's Top Ratings Upgrades, Downgrades For July 20, 2023

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