Sotherly Story

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SOHO -- USA Stock  

USD 2.93  0.03  1.03%

Will avarage Sotherly Hotels analyst consensus change from Buy? Sotherly Hotels is scheduled to announce its earnings today. As some millenniums are still trying to avoid real estate space, I will try to outline Sotherly Hotels a little further in order to understand its potential as a viable investment. We will evaluate why recent Sotherly Hotels price moves suggest a bounce in April. The current consensus of 3 analysts on the firm is Buy.
Published over a month ago
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What is April outlook for Sotherly Hotels (NASDAQ:SOHO)?
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.

Sotherly Hotels exotic insider transaction detected

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 general transaction of 8.25% series d preferred stock by Andrew Sims, Chairman, on 31st of March 2021. This event was filed by Sotherly Hotels Inc with SEC on 2021-03-31. 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 the case for Sotherly Hotels Investors

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

Will Sotherly Hotels continue to go insane?

Sortino ratio is down to 0.25. It may entail a possible volatility slide. Sotherly Hotels shows above-average downside volatility for the selected time horizon. We advise investors to inspect Sotherly Hotels further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Sotherly Hotels future alpha. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Sotherly Hotels' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Sotherly Hotels' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Our Takeaway on Sotherly Hotels Investment

Whereas some other firms under the reit?hotel & motel industry are still a bit expensive, Sotherly Hotels may offer a potential longer-term growth to institutional investors. Taking everything into account, as of the 4th of March 2021, our research shows that Sotherly Hotels is a rather relatively risky investment opportunity with a average chance of bankruptcy in the next two years. From a slightly different view, the entity currently appears to be undervalued. Our overall 30 days buy-hold-sell advice on the company is Strong Buy.

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 Vlad Skutelnik 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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