JP Morgan slashes price target on Extended Stay America Inc. [STAY] – find out why.

Extended Stay America Inc. [NASDAQ: STAY] slipped around -0.33 points on Friday, while shares priced at $15.08 at the close of the session, down -2.14%. The company report on December 22, 2020 that Extended Stay America Announces Special Distribution and Reaffirmation of Fourth Quarter and Full Year 2020 Guidance.

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Distribution of $0.35 per Paired Share.

Extended Stay America, Inc. and ESH Hospitality, Inc. (NASDAQ:STAY) (together, the “Company”) announced that ESH Hospitality, Inc.’s Board of Directors has declared a special cash distribution of $0.35 per share to holders of ESH Hospitality, Inc.’s Class A and B common stock. This distribution will be payable on January 20, 2021 to shareholders of record as of January 6, 2021. Additionally, the Company re-affirms its fourth quarter and full year 2020 guidance previously issued on November 9, 2020.

Extended Stay America Inc. stock is now 4.35% up from its year-to-date (YTD) trading value. STAY Stock saw the intraday high of $15.60 and lowest of $14.98 per share. The company’s 52-week high price is 15.62, which means current price is +10.15% above from all time high which was touched on 01/14/21.

Compared to the average trading volume of 1.24M shares, STAY reached a trading volume of 942278 in the most recent trading day, which is why market watchdogs consider the stock to be active.

What do top market gurus say about Extended Stay America Inc. [STAY]?

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for STAY shares is $16.05 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on STAY stock is a recommendation set at 2.30. 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.

JP Morgan have made an estimate for Extended Stay America Inc. shares, keeping their opinion on the stock as Overweight, with their previous recommendation back on September 30, 2020. While these analysts kept the previous recommendation, BofA Securities raised their target price from $13.50 to $15. The new note on the price target was released on September 29, 2020, representing the official price target for Extended Stay America Inc. stock. Previously, the target price had yet another raise from $7 to $14, while Jefferies kept a Buy rating on STAY stock. On January 03, 2020, analysts decreased their price target for STAY shares from 17 to 16.

The Average True Range (ATR) for Extended Stay America Inc. is set at 0.49, with the Price to Sales ratio for STAY stock in the period of the last 12 months amounting to 2.56. The Price to Book ratio for the last quarter was 3.96, with the Price to Cash per share for the same quarter was set at 2.10. Price to Free Cash Flow for STAY in the course of the last twelve months was 16.63.

How has STAY stock performed recently?

Extended Stay America Inc. [STAY] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 6.80. With this latest performance, STAY shares gained by 8.83% in over the last four-week period, additionally plugging by 37.01% over the last 6 months – not to mention a rise of 7.77% 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 STAY stock in for the last two-week period is set at 63.70, with the RSI for the last a single of trading hit 61.35, and the three-weeks RSI is set at 60.05 for Extended Stay America Inc. [STAY]. The present Moving Average for the last 50 days of trading for this stock 13.80, while it was recorded at 14.88 for the last single week of trading, and 11.98 for the last 200 days.

Extended Stay America Inc. [STAY]: Deeper insight into the fundamentals

Operating Margin for any stock indicates how profitable investing would be, and Extended Stay America Inc. [STAY] shares currently have an operating margin of +27.13 and a Gross Margin at +34.94. Extended Stay America Inc.’s Net Margin is presently recorded at +5.72.

Return on Total Capital for STAY is now 8.76, given the latest momentum, and Return on Invested Capital for the company is 2.13. Return on Equity for this stock inclined to 9.40, with Return on Assets sitting at 1.75. When it comes to the capital structure of this company, Extended Stay America Inc. [STAY] has a Total Debt to Total Equity ratio set at 381.41. Additionally, STAY Total Debt to Total Capital is recorded at 79.23, with Total Debt to Total Assets ending up at 65.76. Long-Term Debt to Equity for the company is recorded at 380.94, with the Long-Term Debt to Total Capital now at 79.13.

Reflecting on the efficiency of the workforce at the company, Extended Stay America Inc. [STAY] managed to generate an average of $8,819 per employee. Receivables Turnover for the company is 72.11 with a Total Asset Turnover recorded at a value of 0.31.

Earnings analysis for Extended Stay America Inc. [STAY]

With the latest financial reports released by the company, Extended Stay America Inc. posted 0.14/share EPS, while the average EPS was predicted by analysts to be reported at 0.14/share. 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 STAY. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Extended Stay America Inc. go to -5.47%.

Insider trade positions for Extended Stay America Inc. [STAY]

There are presently around $2,152 million, or 94.30% of STAY stock, in the hands of institutional investors. The top three institutional holders of STAY stocks are: VANGUARD GROUP INC with ownership of 14,070,505, which is approximately -7.352% of the company’s market cap and around 0.30% of the total institutional ownership; FMR LLC, holding 10,389,501 shares of the stock with an approximate value of $156.67 million in STAY stocks shares; and BLACKROCK INC., currently with $143.03 million in STAY stock with ownership of nearly 2.227% of the company’s market capitalization.

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Positions in Extended Stay America Inc. stocks held by institutional investors increased at the end of March and at the time of the March reporting period, where 95 institutional holders increased their position in Extended Stay America Inc. [NASDAQ:STAY] by around 16,894,451 shares. Additionally, 128 investors decreased positions by around 23,128,911 shares, while 28 investors held positions by with 102,664,527 shares. The mentioned changes placed institutional holdings at 142,687,889 shares, according to the latest SEC report filing. STAY stock had 23 new institutional investments in for a total of 1,597,679 shares, while 29 institutional investors sold positions of 4,993,243 shares during the same period.

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