Extended Stay America Inc. (NASDAQ:STAY) shares traded higher over the last trading session, gaining 0.25% on 06/01/21. The shares fell to a low of $19.60 before closing at $19.76. Intraday shares traded counted 15.99 million, which was -378.72% lower than its 30-day average trading volume of 3.34M. STAY’s previous close was $19.71 while the outstanding shares total 177.83M. The firm has a beta of 1.92, a 12-month trailing P/E ratio of 170.34, and a growth ratio of 4.08. The stock’s Relative Strength Index (RSI) is 54.07, with weekly volatility at 1.02% and ATR at 0.18. The STAY stock’s 52-week price range has touched low of $10.38 and a $20.08 high.
Investors have identified the Lodging company Extended Stay America Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $3.52 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Extended Stay America Inc. (STAY) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For STAY, the company has in raw cash 371.01 million on their books with 612.5 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on a decline. In terms of their assets, the company currently has 385.04 million total, with 841.82 million as their total liabilities.
STAY were able to record 62.55 million as free cash flow during the 07/29/2021 quarter of the year, this saw their quarterly net cash flow reduce by -38.91 million. In cash movements, the company had a total of 91.35 million as operating cash flow.
Potential earnings growth for Extended Stay America Inc. (STAY)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 07/29/2021 quarter of the year, Extended Stay America Inc. recorded a total of 259.57 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with -2.59% coming in sequential stages and their sales for the 07/29/2021 quarter increasing by 0.11%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 259.57 million trying to sell their products during the last quarter, with the result yielding a gross income of 215.08 million. This allows shareholders to hold on to 177.83M with the recently reported earning now reading 0.07 cents per share. This is a figure that compared to analyst’s prediction for their 07/29/2021 (0.04 cents a share).
Having a look at the company’s valuation, the company is expected to record 0.70 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on STAY sounds very interesting.
Is the stock of STAY attractive?
In related news, Director, WALLMAN RICHARD F sold 20,000 shares of the company’s stock in a transaction that recorded on Nov 13. The sale was performed at an average price of 12.28, for a total value of 245,504. As the sale deal closes, the See Remarks, HENRY KEVIN A now sold 8,500 shares of the company’s stock, valued at 92,891. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.50%.
1 out of 6 analysts covering the stock have rated it a Buy, while 5 have maintained a Hold recommendation on Extended Stay America Inc.. 0 analysts has assigned a Sell rating on the STAY stock. The 12-month mean consensus price target for the company’s shares has been set at $19.29.