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

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Zacks Investment Research downgraded shares of Red Lion Hotels (NYSE:RLH) from a hold rating to a strong sell rating in a report issued 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 analysts also recently weighed in on RLH. B. Riley lifted their price target on shares of Red Lion Hotels from $14.50 to $16.25 and gave the company a buy rating in a research note on Wednesday, July 25th. ValuEngine raised shares of Red Lion Hotels from a buy rating to a strong-buy rating in a research note on Saturday, July 28th. Finally, TheStreet raised shares of Red Lion Hotels from a c rating to a b- rating in a research note on Wednesday, August 15th.

Shares of Red Lion Hotels stock traded down $0.46 on Friday, hitting $9.05. 64,996 shares of the company traded hands, compared to its average volume of 101,512. The company has a quick ratio of 1.57, a current ratio of 1.89 and a debt-to-equity ratio of 0.18. Red Lion Hotels has a 52 week low of $8.15 and a 52 week high of $14.75.

Red Lion Hotels (NYSE:RLH) last posted its quarterly earnings results on Monday, November 5th. The company reported ($0.35) earnings per share for the quarter, missing the Thomson Reuters’ 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 company had revenue of $36.00 million for the quarter, compared to the consensus estimate of $36.58 million.

In related news, Director Pacific Opportunity F. Columbia sold 91,425 shares of the business’s stock in a transaction that occurred on Wednesday, August 29th. The shares were sold at an average price of $13.82, for a total value of $1,263,493.50. Following the completion of the transaction, the director now owns 807,905 shares of the company’s stock, valued at $11,165,247.10. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director Pacific Opportunity F. Columbia sold 18,200 shares of the business’s stock in a transaction that occurred on Monday, August 27th. The stock was sold at an average price of $13.90, for a total transaction of $252,980.00. Following the completion of the transaction, the director now directly owns 807,905 shares of the company’s stock, valued at approximately $11,229,879.50. The disclosure for this sale can be found here. Insiders sold 375,917 shares of company stock valued at $4,954,786 in the last three months. 19.70% of the stock is currently owned by insiders.

Several hedge funds have recently modified their holdings of the company. Schwab Charles Investment Management Inc. increased its position in shares of Red Lion Hotels by 21.8% during the second quarter. Schwab Charles Investment Management Inc. now owns 39,100 shares of the company’s stock worth $456,000 after purchasing an additional 7,000 shares in the last quarter. Russell Investments Group Ltd. increased its position in shares of Red Lion Hotels by 4.5% during the second quarter. Russell Investments Group Ltd. now owns 208,500 shares of the company’s stock worth $2,429,000 after purchasing an additional 8,900 shares in the last quarter. BlackRock Inc. increased its position in shares of Red Lion Hotels by 0.7% during the third quarter. BlackRock Inc. now owns 1,312,795 shares of the company’s stock worth $16,409,000 after purchasing an additional 9,332 shares in the last quarter. Chicago Equity Partners LLC acquired a new position in shares of Red Lion Hotels during the second quarter worth $155,000. Finally, Dimensional Fund Advisors LP increased its position in shares of Red Lion Hotels by 1.3% during the second quarter. Dimensional Fund Advisors LP now owns 2,011,687 shares of the company’s stock worth $23,436,000 after purchasing an additional 25,171 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: Price to Earnings Ratio (PE) Basics

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