Ashford Inc (AINC) Gets a Buy Rating from B.Riley FBR


B.Riley FBR analyst Bryan Maher maintained a Buy rating on Ashford Inc (AINC) today and set a price target of $59. The company’s shares closed on Friday at $33, close to its 52-week low of $25.77.

Maher said:

“We are lowering our Ashford Inc. (AINC) estimates following mixed 2Q19 results to account for modestly lower base advisory fee income, mainly from Ashford Trust (AHT), due to its sharply reduced share price over the past six weeks. Although this fee is calculated using AHT’s total market capitalization, it contractually cannot decline more than 10% Y/Y . Another factor impacting our near-term earnings estimates relates to the timing of Ashford Inc.’s ERFP contributions to AHT and Braemar (BHR). This can be very difficult to model (timing-wise); and, as such, while the tax benefits to Ashford Inc. are clear, the program can lead to some above- average variability in earnings. The net result: Our 2019E estimates are coming down; 2020E is relatively unchanged; and 2021 improves modestly from our prior estimates.”

According to TipRanks.com, Maher is a 4-star analyst with an average return of 8.3% and a 52.6% success rate. Maher covers the Financial sector, focusing on stocks such as Industrial Logistics Properties Trust, Senior Housing Properties Trust, and Office Properties Income Trust.

The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Ashford Inc with a $59 average price target.

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Based on Ashford Inc’s latest earnings release for the quarter ending June 30, the company reported a quarterly net profit of $112K. In comparison, last year the company had a net profit of $8.92 million.

Based on the recent corporate insider activity of 9 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of AINC in relation to earlier this year.

TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.

Ashford, Inc. engages in the provision of asset management, advisory services and other products and services primarily to clients in the hospitality industry. Its segments include REIT Advisory and Hospitality Products and Services. The REIT Advisory segment provides asset management and advisory services.

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