The action in the afterhours trading period can often give investors a good idea about the direction of the market on the next trading day and hence, it could be a good move to look into the Ashford Hospitality Trust Inc (NYSE:AHT) stock.
Yesterday, the stock was in sharp focus among investors in the afterhours trading period and ended up clocking gains of as much as 27%. The stock soared after Ashford Hospitality announced that its Board of Directors approved the 1 for 10 reverse split of the company’s common stock. The reverse stock split is going to come into effect after the closure of markets on July 16, 2021.
It will start trading on this basis from July 19, 2021 on the New York Stock Exchange. Once it comes into effect, a share of the Ashford Hospitality issued and outstanding common stock is going to be turned into a tenth of the common stock. In this regard, it is also necessary to note that the approval from the board of directors of Ashford Hospitality was unanimous. Over the course of the coming days, it is going to be interesting to see if there is heavier action in the stock.
Market Reaction:
On Friday, AHT stock ended lower by 8.33% at $3.96 with more than 27.07 million shares, compared to its average volume of 34.08 million shares. The stock has moved within a range of $3.9400 – 4.2871 after opening the trade at $4.21. Over the past 52-week, the stock has been trading within a range of $1.2700 – 8.5100.
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