Huazhu Group Limited [HTHT] stock Downgrade by Credit Suisse analyst, price target now $49

Huazhu Group Limited [NASDAQ: HTHT] loss -0.57% or -0.26 points to close at $45.53 with a heavy trading volume of 926417 shares. The company report on January 14, 2021 that ROSEN, A LEADING INVESTOR RIGHTS LAW FIRM, Continues to Investigate Securities Claims Against Huazhu Group Limited – HTHT.

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Rosen Law Firm, a global investor rights law firm, continues to investigate potential securities claims on behalf of shareholders of Huazhu Group Limited (NASDAQ: HTHT) resulting from allegations that Huazhu may have issued materially misleading business information to the investing public.

On September 21, 2020, Bonitas Research issued a report on the Company which alleged that Huazhu “lied about the ownership of its hotel portfolio to produce fake financials.” The report also stated that Bonitas’ fieldwork “confirmed that Huazhu secretly supported operating costs of franchisee hotels owned by undisclosed current Huazhu employees & other undisclosed related parties (‘off-book hotels’).” Bonitas further asserted that it “believe[s] that Huazhu concealed operating expenses using undisclosed related party transactions to artificially inflate Huazhu’s reported profits[,]” and that it “calculate[s] that Huazhu’s fake profits manifested as RMB 2 billion (US$ 300 million) of fake PP&E on its CYE’19 balance sheet.”.

It opened the trading session at $45.84, the shares rose to $45.84 and dropped to $44.55, the range by which the price of stock traded the whole day. The daily chart for HTHT points out that the company has recorded 27.50% gains over the past six months. However, it is still -82.05% lower than its most recent low trading price.

If we look at the average trading volume of 1.59M shares, HTHT reached to a volume of 926417 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here is what top equities market gurus are saying about Huazhu Group Limited [HTHT]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for HTHT shares is $48.83 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on HTHT stock is a recommendation set at 2.40. 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.

Credit Suisse have made an estimate for Huazhu Group Limited shares, keeping their opinion on the stock as Neutral, with their previous recommendation back on December 08, 2020. While these analysts kept the previous recommendation, The Benchmark Company raised their target price from $45 to $76. The new note on the price target was released on December 07, 2020, representing the official price target for Huazhu Group Limited stock. Previously, the target price had yet another raise to $48.50, while BofA Securities analysts kept a Buy rating on HTHT stock.

The Average True Range (ATR) for Huazhu Group Limited is set at 1.55, with the Price to Sales ratio for HTHT stock in the period of the last 12 months amounting to 19.14. The Price to Book ratio for the last quarter was 8.72, with the Price to Cash per share for the same quarter was set at 2.31.

Trading performance analysis for HTHT stock

Huazhu Group Limited [HTHT] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -5.07. With this latest performance, HTHT shares dropped by -3.00% in over the last four-week period, additionally plugging by 27.50% over the last 6 months – not to mention a rise of 17.65% 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 HTHT stock in for the last two-week period is set at 46.10, with the RSI for the last a single of trading hit 44.88, and the three-weeks RSI is set at 47.52 for Huazhu Group Limited [HTHT]. The present Moving Average for the last 50 days of trading for this stock 47.28, while it was recorded at 45.93 for the last single week of trading, and 39.73 for the last 200 days.

Huazhu Group Limited [HTHT]: A deeper dive into fundamental analysis

Operating Margin for any stock indicates how profitable investing would be, and Huazhu Group Limited [HTHT] shares currently have an operating margin of +22.61 and a Gross Margin at +35.67. Huazhu Group Limited’s Net Margin is presently recorded at +15.78.

Return on Total Capital for HTHT is now 8.28, given the latest momentum, and Return on Invested Capital for the company is 7.28. Return on Equity for this stock inclined to 26.23, with Return on Assets sitting at 4.63. When it comes to the capital structure of this company, Huazhu Group Limited [HTHT] has a Total Debt to Total Equity ratio set at 517.16. Additionally, HTHT Total Debt to Total Capital is recorded at 83.80, with Total Debt to Total Assets ending up at 72.02. Long-Term Debt to Equity for the company is recorded at 360.21, with the Long-Term Debt to Total Capital now at 58.37.

Reflecting on the efficiency of the workforce at the company, Huazhu Group Limited [HTHT] managed to generate an average of $109,301 per employee. Receivables Turnover for the company is 21.30 with a Total Asset Turnover recorded at a value of 0.29.Huazhu Group Limited’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.90 and a Current Ratio set at 0.90.

Huazhu Group Limited [HTHT]: An earnings per share (EPS) analysis

With the latest financial reports released by the company, Huazhu Group Limited posted 0.19/share EPS, while the average EPS was predicted by analysts to be reported at 0.2/share. When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -5.00%. 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 HTHT. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Huazhu Group Limited go to 5.56%.

An analysis of insider ownership at Huazhu Group Limited [HTHT]

There are presently around $6,425 million, or 46.50% of HTHT stock, in the hands of institutional investors. The top three institutional holders of HTHT stocks are: INVESCO LTD. with ownership of 37,388,514, which is approximately 0.121% of the company’s market cap and around 56.40% of the total institutional ownership; WELLINGTON MANAGEMENT GROUP LLP, holding 11,444,932 shares of the stock with an approximate value of $521.09 million in HTHT stocks shares; and BLACKROCK INC., currently with $460.93 million in HTHT stock with ownership of nearly 12.568% of the company’s market capitalization.

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Positions in Huazhu Group Limited stocks held by institutional investors increased at the end of March and at the time of the March reporting period, where 98 institutional holders increased their position in Huazhu Group Limited [NASDAQ:HTHT] by around 24,212,355 shares. Additionally, 74 investors decreased positions by around 16,449,299 shares, while 38 investors held positions by with 100,454,729 shares. The mentioned changes placed institutional holdings at 141,116,383 shares, according to the latest SEC report filing. HTHT stock had 29 new institutional investments in for a total of 6,415,045 shares, while 25 institutional investors sold positions of 2,674,970 shares during the same period.

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