RLJ Lodging Trust (NYSE:RLJ) Receives Average Recommendation of "Reduce" from Brokerages

Key Points

• Analysts remain cautious: RLJ Lodging Trust has an average “Reduce” rating from 10 brokerages, with three sells, five holds and two buys. The average 12-month price target is $11.11, near the stock’s reported $10.93 price.
• Institutional ownership is substantial: Hedge funds and other institutional investors own 92.35% of RLJ, with several major investors recently establishing or increasing positions.
• Quarterly results beat expectations: RLJ reported earnings of $0.52 per share versus the $0.15 consensus estimate and revenue of $382.99 million. The company pays a $0.15 quarterly dividend, equivalent to a 5.5% annualized yield.

Shares of RLJ Lodging Trust (NYSE:RLJ - Get Free Report) have been assigned an average recommendation of "Reduce" from the ten brokerages that are covering the firm, Marketbeat Ratings reports. Three research analysts have rated the stock with a sell recommendation, five have issued a hold recommendation and two have issued a buy recommendation on the company. The average 12 month price target among brokers that have updated their coverage on the stock in the last year is $11.1111.

A number of analysts recently issued reports on the stock. Wells Fargo & Company raised their price objective on shares of RLJ Lodging Trust from $9.00 to $11.00 and gave the stock an "underweight" rating in a report on Thursday, July 23rd. UBS Group set a $13.00 target price on shares of RLJ Lodging Trust in a research report on Thursday, June 18th. Bank of America raised their price target on shares of RLJ Lodging Trust from $9.25 to $10.50 and gave the stock an "underperform" rating in a research note on Monday, July 20th. Raymond James Financial downgraded RLJ Lodging Trust from a "strong-buy" rating to an "outperform" rating and upped their price objective for the company from $9.00 to $11.00 in a research note on Thursday, May 28th. Finally, Barclays raised their target price on RLJ Lodging Trust from $9.50 to $11.00 and gave the stock an "underweight" rating in a research report on Thursday, August 27th.

Institutional Investors Weigh In On RLJ Lodging Trust

Several institutional investors have recently added to or reduced their stakes in RLJ. Donald Smith & CO. Inc. purchased a new position in shares of RLJ Lodging Trust in the second quarter worth about $145,895,000. Centersquare Investment Management LLC purchased a new stake in shares of RLJ Lodging Trust during the 4th quarter valued at approximately $13,254,000. California State Teachers Retirement System lifted its stake in shares of RLJ Lodging Trust by 1,480.6% during the 2nd quarter. California State Teachers Retirement System now owns 1,616,435 shares of the real estate investment trust's stock valued at $19,155,000 after buying an additional 1,514,167 shares in the last quarter. Aegis Financial Corp bought a new position in RLJ Lodging Trust in the 4th quarter worth approximately $9,475,000. Finally, Ameriprise Financial Inc. boosted its holdings in RLJ Lodging Trust by 286.2% in the 2nd quarter. Ameriprise Financial Inc. now owns 1,618,413 shares of the real estate investment trust's stock worth $11,783,000 after buying an additional 1,199,318 shares during the period. 92.35% of the stock is owned by hedge funds and other institutional investors.

RLJ Lodging Trust Stock Performance

Shares of RLJ Lodging Trust stock opened at $10.93 on Friday. RLJ Lodging Trust has a 52 week low of $6.54 and a 52 week high of $12.89. The company has a quick ratio of 5.71, a current ratio of 5.71 and a debt-to-equity ratio of 1.50. The business has a 50 day moving average price of $11.54 and a 200-day moving average price of $9.87. The company has a market cap of $1.67 billion, a PE ratio of 7.55 and a beta of 1.08.

RLJ Lodging Trust (NYSE:RLJ - Get Free Report) last released its quarterly earnings results on Thursday, August 6th. The real estate investment trust reported $0.52 earnings per share for the quarter, beating analysts' consensus estimates of $0.15 by $0.37. RLJ Lodging Trust had a net margin of 2.00% and a return on equity of 1.52%. The company had revenue of $382.99 million for the quarter, compared to analyst estimates of $370.49 million. During the same period last year, the firm earned $0.48 earnings per share. The firm's revenue was up 5.5% on a year-over-year basis. RLJ Lodging Trust has set its FY 2026 guidance at 1.370-1.500 EPS. Equities analysts anticipate that RLJ Lodging Trust will post 1.33 earnings per share for the current fiscal year.

RLJ Lodging Trust Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, July 15th. Investors of record on Tuesday, June 30th were issued a $0.15 dividend. The ex-dividend date of this dividend was Tuesday, June 30th. This represents a $0.60 annualized dividend and a yield of 5.5%.

About RLJ Lodging Trust

RLJ Lodging Trust is a self-managed, publicly traded real estate investment trust (REIT) that acquires, owns and operates premium-branded, focused-service and compact full-service hotels. The company's portfolio is concentrated in major U.S. markets, targeting properties that benefit from strong corporate and leisure demand, limited new supply and established brand affiliations.

The trust's hotels are affiliated with leading global lodging brands across the spectrum of service levels, including lifestyle and upscale segments.

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