Ashford Dives After Reverse Stock Split
Ashford Hospitality Trust Inc (NYSE:AHT) is trading significantly lower Tuesday morning after the company announced a one-for-10 reverse stock split. As of the effective date on July 16, each share of the Ashford Hospitality Trust''s outstanding common stock will be automatically converted into 1|10 of a share of the company''s common stock. The common stock is expected to begin trading on the split-adjusted basis on July 19. Ashford Hospitality Trust said the reverse stock split was aimed at increasing the price-per-share above the $5 threshold required by many institutions to hold shares. Some brokers had also limited the ability or increase the cost to margin a stock under $5 per share. The companys current options trading is less attractive due to limited applicable strike prices. Moreover, there are high transaction costs as a percentage of Ashford Hospitality Trust''s stock price commissions. "The company is committed to making owning Ashford Trust''s common stock as shareholder friendly as possible, and we believe implementing a reverse stock split is another important step for the Company and its stockholders to optimize our position," said CEO Rob Hays.
Ashford Dives After Reverse Stock Split
Ashford Hospitality Trust Inc (NYSE:AHT) is trading significantly lower Tuesday morning after the company announced a one-for-10 reverse stock split. As of the effective date on July 16, each share of the Ashford Hospitality Trust''s outstanding common stock will be automatically converted into 1|10 of a share of the company''s common stock. The common stock is expected to begin trading on the split-adjusted basis on July 19. Ashford Hospitality Trust said the reverse stock split was aimed at increasing the price-per-share above the $5 threshold required by many institutions to hold shares. Some brokers had also limited the ability or increase the cost to margin a stock under $5 per share. The companys current options trading is less attractive due to limited applicable strike prices. Moreover, there are high transaction costs as a percentage of Ashford Hospitality Trust''s stock price commissions. "The company is committed to making owning Ashford Trust''s common stock as shareholder friendly as possible, and we believe implementing a reverse stock split is another important step for the Company and its stockholders to optimize our position," said CEO Rob Hays.