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Why Ashford Hospitality Trust, Inc. (AHT) stock was high on Friday’s aftermarket?

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Shares of Ashford Hospitality Trust, Inc. (AHT) stock were high in the after-market session on Friday 16, 2021 after closing with $1.92 per share in the last trade. AHT stock price saw a push of 6.77% to reach $2.05 a share in the late hours of Friday. This rise is not attributed to any particular activity of the AHT. Let’s deep dive to explore more of it.

What’s happening?

There is no specific news related to AHT that might explain its rise in the after-market session. No recent upgrades of AHT stock have been done by the analysts to support the bullish sentiment. The recent announcement made by AHT was on March 25, 2021, in which Ashford stock announced that it would release the earnings of the first quarter ended on March 31, 2021, on Tuesday, May 4, 2021, after the closing of the market.AHT will host the conference call on Wednesday, May 5, 2021, at 12:00 p.m. ET.

Previous Earnings Results:

On February 25, 2021, AHT stock did announce its fourth quarter and full-year 2020 financial results the summary of which is given below.

  • AHT stock suffered a net loss of $70.5 million or$2.29 per diluted share related to its common stockholders in the fourth quarter of 2020. The full-year net loss of AHT was $520.5 million or $33.00 per diluted share related to its common stockholders.
  • Revenue per available room (RevPAR) reduced to $35.70 in the fourth quarter with decreasing percentage of 70.1 as compared to the same quarter of the prior year.
  • $23.1 million adjusted EBIDTA was recorded by AHT in the fourth quarter while it was $54.9 million for the full year 2020.
  • As of December 31, 2020, AHT stock had cash and cash equivalents of $92.9 million and restricted cash of $74.4 million.

Forbearance agreements by AHT stock:

During the fourth quarter, AHT stock signed many forbearance agreements which include forbearance agreement on its $98 million Hilton Boston Back Bay mortgage loan, forbearance agreements on its $52 million mortgage loan of 7 hotels, and forbearance agreements on its KEYS Loan Pools that represents 34 hotels and $1.2 billion debt.

Strategic Financing:

On January 15, 2021, AHT did an announcement of closing its strategic financing with Oaktree Capital Management, L.P pursuant to which 200 million financings on closing were drew down by the AHT with the option of drawdown of an additional $250 million in case of need.

Conclusion:

AHT price was up in the late hours of previous trade despite the absence of any particular activity by the Ashford Hospitality Trust. The previous financial results showed that the previous year was difficult for AHT stock. Upcoming results of the first quarter of 2021 would decide the fate of AHT stock.

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