Pebblebrook Hotel Trust (PEB) Gets Some Respect

Chairman, President and CEO Bortz Jon E sold 10,096 shares in Pebblebrook Hotel Trust (NYSE:PEB) for $865,141 in transaction occurred on 2017/04/11. After making this transaction, the Chairman, President and CEO owns a direct stake of 299,447 shares, worth $31,093,168, as per the last closing price. On 2017/04/11 Martz Raymond D, Exec VP, CFO, Treasurer, Secre at PEB, dumped 5,702 shares at an average price of $29.66 per share. The selling total is valued at $6,222,975.

Separately, it had been reported that some other PEB insiders also took part of the insider trading activity. Exec VP, CFO, Treasurer, Secre, Martz Raymond D had divested 12,828 shares for $178,851 through a trade on 2017/03/21. Following this activity, the insider holds 358,158 shares worth $6,427,905 as of recent close. Wall Street’s most bullish Pebblebrook Hotel Trust (NYSE:PEB) analysts are predicting the share price to blow past $44 per share during the next 12 months. The current median share price forecast by them is $40, suggesting that the stock could increase 11.3% in that time frame. The average price target of $39.44 calls for a nearly 9.74% increase in the stock price.

Pebblebrook Hotel Trust (PEB) trading activity significantly improved as the volume at ready counter increased to 4,544,364 shares versus 1,553,820 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 966,029 shares. The share price rose 0% in recent trade and currently has a stock-market value of $2.47B. The shares finished at $35.94, after trading as low as $35.56 earlier in the session. It hit an intraday high Tuesday at $37.09. The stock is now 15.75% above against its bear-market low of $31.05 on October 19, 2018. It has retreated -15.89% since it’s 52-week high of $41.65 reached in June. Now the market price is down -4.85% on the year and down -3.31% YTD.

PEB’s 50 day simple moving average (SMA 50) price is $34.29 and its 200-day simple moving average (SMA 200) price is $36.57. The company’s stock currently has a total float of 67.69M shares. Its weekly volatility is hovering around 3.29% and felt 2.41% volatility in price over a month. On the upside, the share price will test short term resistance at around $36.83. On a downside, the stock is likely to find some support, which begins at $35.3. The failure to get near-term support could push it to $34.67.

It had seen a positive analyst call from Stifel, which upgraded the stock from Hold to Buy on November 12. Analysts at Stifel, maintained the company shares at Hold on October 24 but switched target price from $31.50 to $34.50. The stock lost favor of Robert W. Baird analysts who expressed their lack of confidence in it using a downgrade from Outperform to Neutral on October 02.

When looking at valuations, Pebblebrook Hotel Trust (PEB) has a cheap P/E of 23.1x as compared to industry average of 46.83x. Moreover, it trades for 29.22 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 1.62x price/book and 3.2x price/sales. Compared to others, Pebblebrook Hotel Trust is in a different league with regards to profitability, having net margins of 13.9%. To put some perspective around this, the industry’s average net margin is 35.61%. PEB’s ROE is 7.1%, which is also considerably worse than the industry’s ROE of 14.31%.

Shares of Pebblebrook Hotel Trust (PEB) have gained 5.6% since the company’s last earnings report. Over the past 12 fiscal quarters, Pebblebrook Hotel Trust (NYSE:PEB) has topped consensus earnings estimates in 2 quarters (16%), missed earnings in 10 quarters (83%), whereas at 0 occasion EPS met analyst expectations. PEB last reported earnings on November 01, 2018 when it released Sep-18 results that receded expectations. The company raked in $0.37 per share, -31.48% change on the same period last year. That was worse than consensus for $0.37. Revenue for the recent quarter stood at $205.48 million, up 2% on last year and below the $206.76 million predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $176.24 million to $190.15 million, which should be compared with $184.88 million generated last year. EPS is seen in a range of $0.02 to $0.07, against the $0.08 reported a year ago.