Pebblebrook Hotel Trust [NYSE: PEB] closed the trading session at $18.58 on 12/11/20. The day’s price range saw the stock hit a low of $18.23, while the highest price level was $19.06. The company report on December 11, 2020 that Pebblebrook Hotel Trust Prices Public Offering of 1.75% Convertible Senior Notes Due 2026.
Pebblebrook Hotel Trust (NYSE: PEB) (the “Company”) announced the pricing on December 10, 2020 of an underwritten public offering of $450,000,000 aggregate principal amount of its 1.75% Convertible Senior Notes due 2026 (the “Notes”). The offering is expected to close on December 15, 2020 and is subject to customary closing conditions. The Company has granted the underwriters a 13-day option to purchase up to an additional $50.0 million aggregate principal amount of the Notes solely to cover over-allotments, if any.
The Notes will be the Company’s senior unsecured obligations and will rank equally with all of its existing and future unsecured debt that is not subordinated, senior to any future subordinated debt and junior to all existing and future debt and preferred equity of the Company’s subsidiaries. The Notes will pay interest semiannually at a rate of 1.75% per annum and will mature on December 15, 2026. The Notes will have an initial conversion rate of 39.2549 per $1,000 principal amount of the Notes (equivalent to a conversion price of approximately $25.47 per common share of the Company (“Common Shares”) and a conversion premium of approximately 35.0% based on the closing price of $18.87 per Common Share on December 10, 2020). The initial conversion rate of the Notes is subject to adjustment upon the occurrence of certain events, but will not be adjusted for any accrued and unpaid interest. Prior to June 15, 2026, the Notes will be convertible only upon certain circumstances and during certain periods, and thereafter will be convertible at any time prior to the close of business on the second scheduled trading day prior to maturity of the Notes. Upon conversion, holders will receive cash, Common Shares or a combination thereof at the Company’s election.
The stocks have a year to date performance of -30.70 percent and weekly performance of -6.96 percent. The stock has been moved at 25.80 percent over the last six months. The stock has performed 12.20 percent around the most recent 30 days and changed 33.09 percent over the most recent 3-months.
If compared to the average trading volume of 1.82M shares, PEB reached to a volume of 5582240 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Here’s what leading stock market gurus have to say about Pebblebrook Hotel Trust [PEB]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for PEB shares is $16.79 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on PEB stock is a recommendation set at 3.20. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
Wells Fargo have made an estimate for Pebblebrook Hotel Trust shares, keeping their opinion on the stock as Overweight, with their previous recommendation back on December 10, 2020. While these analysts kept the previous recommendation, Compass Point raised their target price to Neutral. The new note on the price target was released on October 05, 2020, representing the official price target for Pebblebrook Hotel Trust stock. Previously, the target price had yet another raise from $12.50 to $15, while BofA Securities kept a Buy rating on PEB stock. On June 22, 2020, analysts increased their price target for PEB shares from 9 to 15.
The Average True Range (ATR) for Pebblebrook Hotel Trust is set at 1.07, with the Price to Sales ratio for PEB stock in the period of the last 12 months amounting to 3.30. The Price to Book ratio for the last quarter was 0.72, with the Price to Cash per share for the same quarter was set at 1.54.
PEB stock trade performance evaluation
Pebblebrook Hotel Trust [PEB] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -6.96. With this latest performance, PEB shares gained by 12.20% in over the last four-week period, additionally plugging by 25.80% over the last 6 months – not to mention a drop of -28.54% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for PEB stock in for the last two-week period is set at 56.34, with the RSI for the last a single of trading hit 50.28, and the three-weeks RSI is set at 58.42 for Pebblebrook Hotel Trust [PEB]. The present Moving Average for the last 50 days of trading for this stock 15.62, while it was recorded at 18.96 for the last single week of trading, and 13.07 for the last 200 days.
Pebblebrook Hotel Trust [PEB]: An insightful look at the core fundamentals
Operating Margin for any stock indicates how profitable investing would be, and Pebblebrook Hotel Trust [PEB] shares currently have an operating margin of +8.19 and a Gross Margin at +17.58. Pebblebrook Hotel Trust’s Net Margin is presently recorded at +7.11.
Return on Total Capital for PEB is now 2.10, given the latest momentum, and Return on Invested Capital for the company is 1.83. Return on Equity for this stock inclined to 3.12, with Return on Assets sitting at 1.71. When it comes to the capital structure of this company, Pebblebrook Hotel Trust [PEB] has a Total Debt to Total Equity ratio set at 68.64. Additionally, PEB Total Debt to Total Capital is recorded at 40.70, with Total Debt to Total Assets ending up at 38.25. Long-Term Debt to Equity for the company is recorded at 68.15, with the Long-Term Debt to Total Capital now at 40.41.
Reflecting on the efficiency of the workforce at the company, Pebblebrook Hotel Trust [PEB] managed to generate an average of $1,985,310 per employee. Receivables Turnover for the company is 29.56 with a Total Asset Turnover recorded at a value of 0.24.
Earnings per share (EPS) analysis for Pebblebrook Hotel Trust [PEB] stock
With the latest financial reports released by the company, Pebblebrook Hotel Trust posted 0.08/share EPS, while the average EPS was predicted by analysts to be reported at 0.05/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 60.00%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for PEB. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Pebblebrook Hotel Trust go to 9.00%.
Pebblebrook Hotel Trust [PEB]: Insider Ownership positions
There are presently around $2,530 million, in the hands of institutional investors. The top three institutional holders of PEB stocks are: BLACKROCK INC. with ownership of 18,630,964, which is approximately -4.924% of the company’s market cap and around 0.70% of the total institutional ownership; VANGUARD GROUP INC, holding 18,214,953 shares of the stock with an approximate value of $338.43 million in PEB stocks shares; and CAPITAL INTERNATIONAL INVESTORS, currently with $127.11 million in PEB stock with ownership of nearly 980.108% of the company’s market capitalization.
Positions in Pebblebrook Hotel Trust stocks held by institutional investors increased at the end of October and at the time of the October reporting period, where 98 institutional holders increased their position in Pebblebrook Hotel Trust [NYSE:PEB] by around 19,982,785 shares. Additionally, 122 investors decreased positions by around 22,233,781 shares, while 42 investors held positions by with 93,974,997 shares. The mentioned changes placed institutional holdings at 136,191,563 shares, according to the latest SEC report filing. PEB stock had 25 new institutional investments in for a total of 4,033,451 shares, while 37 institutional investors sold positions of 7,201,371 shares during the same period.