Why Ashford Hospitality Trust Dived by 8% Today
Ashford Hospitality Trust (NYSE: AHT) probably lost a bit of trust with its investors on Tuesday. The company announced what's effectively a secondary share sale, which was met with an investor sell-off that drove the stock price down 8% on the day.
In a regulatory filing, Ashford disclosed that an entity called Seven Knots is purchasing slightly over 40 million new shares of the company's common stock. The shares will be resold by Seven Knots to the public "from time to time." Ashford, a real estate investment trust (REIT) that specializes in hotels, did not get more specific about the sale schedule.
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Source Fool.com
