Zacks Investment Research Lowers Red Lion Hotels (RLH) to Strong Sell

Zacks Investment Research cut shares of Red Lion Hotels (NYSE:RLH) from a hold rating to a strong sell rating in a research report released on Friday morning.

According to Zacks, “Red Lion Hotels Corporation, established in 1959, is an international hospitality company primarily engaged in the franchising, management and ownership of upscale, midscale and economy hotels under the Hotel RL, Red Lion Hotels, Red Lion Inn & Suites, GuestHouse, Settle Inn, Vantage Hotels, Americas Best Value Inn, Canadas Best Value Inn, Lexington by Vantage, America’s Best Inns & Suites, Country Hearth Inns, Jameson Inn, Signature Inn and 3 Palms Hotels & Resorts brands. The company also owns and operates an entertainment and event ticket distribution business under the brand name TicketsWest. “

Several other research firms have also commented on RLH. TheStreet raised shares of Red Lion Hotels from a c rating to a b- rating in a report on Wednesday, August 15th. ValuEngine raised shares of Red Lion Hotels from a buy rating to a strong-buy rating in a report on Saturday, July 28th. Finally, B. Riley upped their price target on shares of Red Lion Hotels from $14.50 to $16.25 and gave the company a buy rating in a report on Wednesday, July 25th.

Shares of RLH traded down $0.46 during trading hours on Friday, reaching $9.05. 64,996 shares of the company traded hands, compared to its average volume of 101,512. The company has a debt-to-equity ratio of 0.18, a current ratio of 1.89 and a quick ratio of 1.57. Red Lion Hotels has a 12-month low of $8.15 and a 12-month high of $14.75.

Red Lion Hotels (NYSE:RLH) last posted its quarterly earnings results on Monday, November 5th. The company reported ($0.35) EPS for the quarter, missing the consensus estimate of $0.14 by ($0.49). Red Lion Hotels had a net margin of 7.32% and a negative return on equity of 7.37%. The business had revenue of $36.00 million during the quarter, compared to analysts’ expectations of $36.58 million.

In other Red Lion Hotels news, Director Pacific Opportunity F. Columbia sold 18,200 shares of the company’s stock in a transaction on Monday, August 27th. The shares were sold at an average price of $13.90, for a total value of $252,980.00. Following the sale, the director now directly owns 807,905 shares of the company’s stock, valued at $11,229,879.50. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Pacific Opportunity F. Columbia sold 50,858 shares of the company’s stock in a transaction on Friday, September 28th. The shares were sold at an average price of $12.36, for a total transaction of $628,604.88. Following the completion of the sale, the director now directly owns 500,000 shares in the company, valued at $6,180,000. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 375,917 shares of company stock worth $4,954,786. 19.70% of the stock is owned by corporate insiders.

Hedge funds have recently bought and sold shares of the company. Chicago Equity Partners LLC purchased a new stake in shares of Red Lion Hotels during the 2nd quarter worth about $155,000. Schwab Charles Investment Management Inc. boosted its stake in shares of Red Lion Hotels by 21.8% during the 2nd quarter. Schwab Charles Investment Management Inc. now owns 39,100 shares of the company’s stock worth $456,000 after acquiring an additional 7,000 shares in the last quarter. EAM Global Investors LLC purchased a new stake in shares of Red Lion Hotels during the 3rd quarter worth about $984,000. Wells Fargo & Company MN boosted its stake in shares of Red Lion Hotels by 197.2% during the 3rd quarter. Wells Fargo & Company MN now owns 97,552 shares of the company’s stock worth $1,220,000 after acquiring an additional 64,725 shares in the last quarter. Finally, EAM Investors LLC boosted its stake in shares of Red Lion Hotels by 67.9% during the 3rd quarter. EAM Investors LLC now owns 120,169 shares of the company’s stock worth $1,502,000 after acquiring an additional 48,603 shares in the last quarter. 78.06% of the stock is currently owned by institutional investors and hedge funds.

About Red Lion Hotels

Red Lion Hotels Corporation, doing business as RLH Corporation, operates as a hospitality and leisure company the United States. It operates in two segments, Company Operated Hotels and Franchised Hotels. The company owns, manages, and franchises upscale, midscale, and economy hotels under the Hotel RL, Red Lion Hotels, Red Lion Inn & Suites, GuestHouse, Settle Inn, Americas Best Value Inn, Canadas Best Value Inn, Signature and Signature Inn, and Country Hearth Inns & Suites brands; America's Best Inn & Suites, Jameson Inns, Lexington Hotels & Inns, and 3 Palm Hotels brands; and Value Inn Worldwide and Value Hotel Worldwide brands.

Further Reading: Dollar Cost Averaging

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