Recommended Mix Momentum Stocks: Hilton Worldwide (NYSE:HLT), FelCor Lodging Trust (NYSE:FCH)

Shares of Hilton Worldwide Holdings Inc. (NYSE:HLT) [Trend Analysis] runs in leading trade, it surging 1.00% to traded at $57.78. The firm has price volatility of 1.42% for a week and 1.36% for a month. Hilton Worldwide Holdings Inc. (HLT) said that its board has authorized a stock repurchase program of up to $1 billion of the Company’s common stock. The Board also declared a quarterly dividend of $0.15 per share of Hilton’s common stock, payable on March 31, 2017 to stockholders of record as of March 10, 2017.In addition, the Company’s Board of Directors has authorized changing the Company’s corporate name to “Hilton Inc.” effective March 6, 2017. The Company’s common stock will continue to trade on the New York Stock Exchange under the symbol “HLT.” Narrow down four to firm performance, its weekly performance was -2.46% and monthly performance was -1.70%. The stock price of HLT is moving down from its 20 days moving average with -0.73% and isolated positively from 50 days moving average with 1.09%.

Several matter pinch shares of FelCor Lodging Trust Incorporated (NYSE:FCH) [Trend Analysis], as shares moving down -6.23% to $7.08 with a share volume of 6.22 Million. FelCor Lodging Trust Incorporated (FCH) proposed clarification on the unsolicited, non-binding and conditional proposal to combine its business with Ashford Hospitality Trust (AHT). AHT’s February 21, 2017 proposal follows several months of discussions between FelCor and AHT, during which FelCor repeatedly expressed numerous concerns regarding the value and structure of AHT’s various proposals.

Notable concerns include: Dilution to AHT Shareholders. The proposed offer would dilute AHT’s Funds From Operations (FFO) by more than 30% (based on current consensus estimates for 2017 and not including any incremental costs or synergies), thereby affecting both the value of AHT’s all-stock, fixed exchange ratio proposal and creating uncertainty around the ability to obtain the shareholder approval required from both AHT and FelCor shareholders.

External Management Fees Negate Synergies. AHT’s proposal for a one-year guarantee of $18 million in cost and operating synergies would be more than offset by external management fees to its external advisor, Ashford Inc., in excess of $25 million. Further, AHT has only offered to guarantee synergies for the first year, whereas these external management fees will be paid every year. Moreover, transferring hotel management to its affiliate, Remington Hotels, would further increase the fees paid to Ashford Inc. after it completes its pending acquisition of Remington. The stock is going forward its 52-week low with 27.94% and moving down from its 52-week high price with -22.45%. The float short ratio was 5.89%, as compared to sentiment indicator; Short Ratio was 5.34.


About Devon Leftovich

Leave a Reply

Your email address will not be published. Required fields are marked *