Braemar Hotels & Resorts Inc. (NYSE: BHR) Seen Running Too Hot, Let’s Look At This More Closely


The Vanguard Group, Inc. recently announced the acquisition of new stake in Braemar Hotels & Resorts Inc. (NYSE:BHR). The institutional investor has increased its shareholding in the Real Estate company by 0.09% to 3.06 million shares with purchase of 2889.0 shares. This fresh investment now brings its stake to 9.12% valued currently at $8.74 million. In addition, BlackRock Fund Advisors raised its holdings by 640.0 to 2.18 million shares. And QMA LLC has lifted its position by 5.27% or 37598.0 shares – to 0.75 million shares.

With over 0.47 million Braemar Hotels & Resorts Inc. (BHR) shares trading Thursday and a closing price of $2.66 on the day, the dollar volume was approximately $1.26 million. The shares have shown a positive weekly performance of 14.16% and its price on 07/16/20 lost nearly -7.96%. Currently, there are 32.47M common shares owned by the public and among those 26.08M shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 5 analysts who have offered their price forecasts for BHR have a consensus price objective of $4.85. The analysts have set the share’s price value over the next 12 months at a high of $7.00 and a low of $2.75 should the stock experience a downside. Incidentally, analysts’ outlook for the Braemar Hotels & Resorts Inc. stock is 2.40 for the next 12 months. But an upside of 62.0% will see the stock hit the forecast high price target while mean target price for the stock is $5.00.

Insiders at the company have transacted a total of 16 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 13 of these insider trades were purchases, accounting for 169,409 shares. Insider sales of the common stock occurred on 3 occasions, with total insider shares sold totaling 17,746 shares.

The top 3 mutual fund holders in Braemar Hotels & Resorts Inc. are Fidelity Japan Fidelity US REIT M, Vanguard Real Estate Index Fund, and Vanguard Total Stock Market Index. Fidelity Japan Fidelity US REIT M owns 3.57 million shares of the company’s stock, all valued at over $10.22 million. The company bought an additional 1.33 million shares recently to bring their total holdings to about 10.66% of the shares outstanding. Vanguard Real Estate Index Fund sold 26866.0 shares to see its total holdings shrink to 1.26 million shares valued at over $3.61 million and representing 3.77% of the shares outstanding. Vanguard Total Stock Market Index now owns shares totaling to 2.84% of the shares outstanding.

Shares of Braemar Hotels & Resorts Inc. (NYSE: BHR) opened at $2.89, unchanged from a prior closing price of $2.89. However, the script later closed the day at $2.66, down -7.96%. The company’s stock has a 5-day price change of 14.16% and 19.82% over the past three months. BHR shares are trading -70.21% year to date (YTD), with the 12-month market performance down to -71.79% lower. It has a 12-month low price of $1.14 and touched a high of $10.39 over the same period. Currently, 0.47 million shares have been traded, compared to an average intraday trading volume of 881.97K shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by -5.46%, -14.19%, and -56.66% respectively.

Institutional ownership of Braemar Hotels & Resorts Inc. (NYSE: BHR) shares accounts for 62.10% of the company’s 32.47M shares outstanding. Mutual fund holders own 33.62%, while other institutional holders and individual stakeholders account for 4.22% and 17.88% respectively.

It has a market capitalization of $85.84M and a beta (3y monthly) value of 2.73. The earnings-per-share (ttm) stands at -$0.69. The company has a debt-to-equity ratio at 3.16. Price movements for the stock have been influenced by the stock’s volatility, which stands at 11.44% over the week and 10.45% over the month.

Analysts forecast that Braemar Hotels & Resorts Inc. (BHR) will achieve an EPS of -$1.45 for the current quarter, -$1 for the next quarter and -$1.62 for 2021. The lowest estimate earnings-per-share for the quarter is -$1.46 while analysts give the company a high EPS estimate of -$1.44. Comparatively, EPS for the current quarter was -$0.22 a year ago. Earnings per share for the fiscal year are expected to decrease by -75.50%, and 54.20% over the next financial year. EPS should grow at an annualized rate of 15.30% over the next five years, compared to -49.90% over the past 5-year period.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 5 brokerage firm advisors rate Braemar Hotels & Resorts Inc. (BHR) as a “Moderate Buy” at a consensus score of 2.40. Specifically, 2 Wall Street analysts polled rate the stock as a buy, while 3 of the 5 advise that investors “hold,” and 0 rated it as a “Sell.”

Looking at the support for the BHR, a number of firms have released research notes about the stock. B. Riley FBR stated their Neutral rating for the stock in a research note on June 05, 2020, with the firm’s price target at $4.50. DA Davidson coverage for the Braemar Hotels & Resorts Inc. (BHR) stock in a research note released on March 10, 2020 offered a Neutral rating with a price target of. B. Riley FBR was of a view on July 10, 2019 that the stock is Buy, while B. Riley FBR gave the stock Neutral rating on May 01, 2019, issuing a price target of $14. DA Davidson on their part issued Buy rating on December 14, 2018.


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