The Case for and Against RAIT Financial Trust (RAS)

RAIT Financial Trust (RAS) is an interesting player in the Financial space, with a focus on REIT – Diversified. The stock has been active on the tape, currently trading at $0.38, up from yesterday’s close by 63.45%. 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

RAIT Financial Trust (RAS) currently trades with a market capitalization of $35.17 Million. That value represents a market adjusting for revenues that have been falling by -32.68 % 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 $16.97 Million over the past twelve months. Generally speaking, earnings are expected to fall in coming quarters. Analysts are forecasting earnings of $0.21 on a per share basis this quarter. Perhaps, that suggests something about why 5.74% of the outstanding share supply is held by institutional investors.

Technical Analysis

As most professionals know, technical analysis can offer critical insights into what smart money and insiders think about a stock’s prospects going forward. Looking at the stock’s movement on the chart, RAIT Financial Trust recorded a 52-week high of $3.22. It is now trading 2.84% off that level. The stock is trading $0.39 its 50-day moving average by 0.01%. The stock carved out a 52-week low down at $0.17.

In recent action, RAIT Financial Trust (RAS) has made a move of -20.00% 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 16.68, 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 3.78% with $90.40 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of RAS.

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