Sotherly Story

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SOHO -- USA Stock  

USD 2.71  0.02  0.74%

Will avarage Sotherly Hotels analyst consensus change from Buy? The stock is still going through an active upward rally. While many of us are getting excited about real estate space, we are going to outline the feasibility of picking up Sotherly. We will evaluate why we are still optimistic in anticipation of a recovery. The current consensus of 3 analysts on the firm is Buy.
Published over a month ago
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Do analysts have more confidence in Sotherly Hotels (NASDAQ:SOHO) in December?
This firm currently holds 374.12 M in liabilities with Debt to Equity (D/E) ratio of 6.59, indicating Sotherly Hotels may have difficulties to generate enough cash to satisfy its financial obligations.
What is the right price you would pay to acquire a share of Sotherly Hotels? For most investors, it would be the price that gives them a wide margin of safety to have minimal downside risk. In other words, most investors are always looking for undervalued stocks. Even if the future performance is not entirely as expected, the loss of holding it is minimized, and the downside risk is negated. Please read more on our stock advisor page.

What is happening with Sotherly Hotels this year

Annual and quarterly reports issued by Sotherly Hotels are formal financial statements that are published yearly and quarterly and sent to Sotherly stockholders. The reports show and break down the current year's ongoing operations and discuss plans for the upcoming year. Annual reports have been a requirement from the Securities and Exchange Commission (SEC) for businesses owned by the public since 1934. Companies such as Sotherly Hotels often view their annual report as an effective marketing tool to disseminate their perspective on company future earnings or innovations. With this in mind, many companies devote large sums of money to making their reports attractive and informative. In such instances, the annual report becomes a forum through which a company can communicate to the general public any number of topics that may or may not be directly related to the actual data published in the reports.

How Sotherly utilizes its cash?

To perform a cash flow analysis of Sotherly Hotels, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Sotherly Hotels is receiving and how much cash it distributes out in a given period. The Sotherly Hotels cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.

Acquisition by Herschel Walker of 6769 shares of Sotherly Hotels subject to Rule 16b-3

Legal trades by Sotherly Hotels insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Sotherly insider trading alert for grant of common stock by Herschel Walker, the corporate stakeholder, on 21st of December 2020. This event was filed by Sotherly Hotels Inc with SEC on 2020-12-21. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

What is driving Sotherly Hotels Investor Appetite?

Analysts have increased confidence in Sotherly Hotels as compared to a month ago. The current consensus of 3 analysts is Buy.

Is Sotherly a risky opportunity?

Let's check the volatility. Sotherly is looking slightly risky at this time. Whether you invest your money or manage your clients' funds, remember that it is easy to forget that behind Sotherly (NASDAQ:SOHO) stock is an actual business venture. So, do not let stock picking become an abstract concept by ignoring the elementary risk calculations. picking up a share of a Sotherly Hotels stock makes you a part-owner of that company.

Sotherly Hotels Current Consensus

Here is the latest trade recommendation based on an ongoing consensus estimate among financial analysis covering Sotherly Hotels. The Sotherly consensus assessment is calculated by taking the average estimates from all of the analysts covering Sotherly Hotels

Strong Buy
Strong Buy133.33
Strong Sell00.0

Anything left for Sotherly Hotels after the slide?

Potential upside is down to 6.59. It may entail a possible volatility slide. As of the 5th of December, Sotherly Hotels has the Coefficient Of Variation of 1423.93, risk adjusted performance of 0.0913, and Semi Deviation of 3.51. In relation to fundamental indicators, the technical analysis model makes it possible for you to check existing technical drivers of Sotherly Hotels, as well as the relationship between them. In other words, you can use this information to find out if the company will indeed mirror its model of past prices and volume data, or the prices will eventually revert. We were able to analyze and collect data for nineteen technical drivers for Sotherly Hotels, which can be compared to its competition. Please validate Sotherly Hotels jensen alpha and downside variance to decide if Sotherly Hotels is priced more or less accurately, providing market reflects its prevalent price of 2.29 per share. Please also confirm Sotherly Hotels total risk alpha, which is currently at (0.43) to double-check the company can sustain itself at a future point.

Our Conclusion on Sotherly Hotels

Whereas some companies in the reit?hotel & motel industry are either recovering or due for a correction, Sotherly may not be as strong as the others in terms of longer-term growth potentials. Taking everything into account, as of the 5th of December 2020, our analysis shows that Sotherly Hotels slowly supersedes the market. The company is undervalued and projects below average odds of distress for the next 2 years. However, our actual 30 days buy vs. sell advice on the company is Strong Sell.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of Sotherly Hotels. Please refer to our Terms of Use for any information regarding our disclosure principles.

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