The Case for and Against Extended Stay America, Inc. (STAY)

Extended Stay America, Inc. (STAY) is an interesting player in the Services space, with a focus on Lodging. The stock has been active on the tape, currently trading at $21.26, down from yesterday’s close by -3.19%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

Extended Stay America, Inc. (STAY) currently trades with a market capitalization of $4.04 Billion. That value represents a market adjusting for revenues that have been growing by 2.33 % on a quarterly year/year basis as of the company’s last quarterly report.

You can get a sense of how sustainable that is by a levered free cash flow of $306.62 Million over the past twelve months. Generally speaking, earnings are expected to grow in coming quarters. Analysts are forecasting earnings of $0.34 on a per share basis this quarter. Perhaps, that suggests something about why 1.70% of the outstanding share supply is held by institutional investors.

Technical Analysis

It’s important to check the technicals to get a sense of how STAY has been acting. Looking at the stock’s movement on the chart, Extended Stay America, Inc. recorded a 52-week high of $22.58. It is now trading 1.32% off that level. The stock is trading $20.57 its 50-day moving average by -0.69%. The stock carved out a 52-week low down at $16.27.

In recent action, Extended Stay America, Inc. (STAY) has made a move of +7.27% over the past month, which has come on Strong relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 12.54, and it’s gotten there by action that has been less volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 1.52% with $188.13 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of STAY.

Previous articleDrilling Down Into CBRE Group, Inc. (CBRE)
Next articleJust the Facts on Exact Sciences Corporation (EXAS)