Drilling Down Into 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 $17.14, down from yesterday’s close by -0.58%. 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

It’s important to get a feel for how any stock is actually valued on the market based on its core numbers. Extended Stay America, Inc. (STAY) currently trades with a market capitalization of $3.30 Billion. That value represents a market adjusting for revenues that have been falling by -1.03 % on a quarterly year/year basis as of the company’s last quarterly report.

The balance sheet health of any company plays a key role in its ability to meet its obligations and maintain the faith of its investment base. For STAY, the company currently has $138.03 Million of cash on the books. You can get a sense of how sustainable that is by a levered free cash flow of $260.1 Million over the past twelve months. Generally speaking, earnings are expected to fall in coming quarters. Analysts are forecasting earnings of $0.16 on a per share basis this quarter. Perhaps, that suggests something about why 99.31% of the outstanding share supply is held by institutional investors.

Technical Analysis

Sometimes, we can understand most about a stock by simply looking at how it has been trading. Looking at the stock’s movement on the chart, Extended Stay America, Inc. recorded a 52-week high of $20.95. It is now trading 3.81% off that level. The stock is trading $19.21 its 50-day moving average by 2.07%. The stock carved out a 52-week low down at $15.43.

In recent action, Extended Stay America, Inc. (STAY) has made a move of -13.39% 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 18, and it’s gotten there by action that has been more 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 0.77% with $190.32 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of STAY.

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