Does a Barclays Capital Downgrade Make Shares of RLJ Lodging Trust (NYSE:RLJ) a Sell?


RLJ Lodging Trust (NYSE:RLJ) Receives a Downgrade

The stock rating of RLJ Lodging Trust (NYSE:RLJ) was lowered by research professionals at Barclays Capital from a the old Equal-weight rating to a more updated Underweight in analysts report sent to investors on 18 December. The brokerage firm now has a $25.00 Estimated Target Price on shares, suggesting a possible upside of 9.22%.

From a total of 8 analysts covering RLJ Lodging Trust (NYSE:RLJ) stock, 0 rate it a ”Buy”, 0 a “Sell”, and 0 a ”Hold”. This means that NaN of the ratings are positive. The highest target price is $32 while the lowest target price is $24. The mean of all analyst targets is $30.13 with a 42.29% above today’s ($22.89) stock price. RLJ Lodging Trust was the topic of 11 analyst reports since August 7, 2015 according to the firm StockzIntelligence Inc. RBC Capital Markets maintained shares on November 9 with “Outperform” rating. Canaccord Genuity maintained shares with “Buy” rating and $34 target share price in a report from an August 11. Wells Fargo downgraded RLJ stock in a recent report from October 14 to “Market Perform” rating. Finally, Barclays Capital downgraded the stock to “Overweight” rating in a report issued on an August 12.

The stock increased 0.70% or $0.16 during the last trading session, striking $22.89. Approximately shares of stock traded hands. RLJ Lodging Trust (NYSE:RLJ) has declined 24.98% since May 15, 2015 and is downtrending. It has underperformed by 21.17% the S&P500.

The overall sentiment of institutions has decreased to 0.79 in Q2 2015. Its down 0.28, from 1.07 in 2015Q2. The ratio fall, as 28 institutions have sold all the shares of RLJ Lodging Trust that they owned while 75 funds have taken shares off the table. 20 funds have purchased shares for the first time while 61 added to their positions. These institutions now hold 113.88 million shares or 12.82% less than the 130.63 million shares they owned in 2015Q2.

The Fund Lasalle Investment Management Securities Llc currently is holding shares equating to 1.5% of its total portfolio in RLJ Lodging Trust representing a total of 5.03 million shares. Another fund,Palouse Capital Management Inc., is holding a total of 133,678 shares equating to 1.3% of their holdings. Additionally, Delphi Management Inc Ma has a 301,604 share stake in RLJ Lodging Trust which represents 1.2% of their total portfolio. The Fund, Aew Capital Management L P, based out of Massachusetts, has also built up a stake in the stock, which represents a total of 1.02% of their total portfolio. Finally Shinko Asset Management Co. Ltd., a fund which is based in the state of Japan reported a total holdings of 3.37 million shares.

RLJ Lodging Trust is a self-advised and self-administered Maryland real estate investment trust . The company has a market cap of $2.86 billion. The Firm is engaged in acquiring full-service hotels. It has 19.49 P/E ratio. As of December 31, 2014, the Company through its wholly owned subsidiaries, owned 146 properties, which consisted of 144 hotels with approximately 22,900 rooms and two planned hotel conversions, located in 21 states and the District of Columbia, and an interest in one mortgage loan secured by a hotel.

According to Zacks Investment Research, “RLJ Lodging Trust is a REIT focused on investing primarily in premium-branded, focused-service, and compact full-service hotels. It plans to own hotels concentrated in urban and dense suburban markets.”