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Strength Seen in Condor Hospitality Trust, Inc. (CDOR): Can Its 13.6% Jump Turn into More Strength?

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Condor Hospitality Trust, Inc. (CDOR - Free Report) shares rallied 13.6% in the last trading session to close at $6.15. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 6.4% loss over the past four weeks.

The increased investor optimism can be attributed to the announcement made by Condor to sell its entire portfolio of hotels for $305 million, to the affiliates of Blackstone Real Estate Partners. The all-cash deal is expected to occur in the fourth quarter of 2021.

Condor’s board of directors has also adopted a Plan of Liquidation and Dissolution, which might lead to an orderly wind down of the company’s business affairs. The company intends to distribute certain net proceeds from the sale of the hotel portfolio to shareholders in one or more liquidating distribution installments, after taking care of the actions specified in the plan, along with completing the sale and payment of outstanding liabilities.

This real estate investment trust is expected to post quarterly funds from operations (FFO) of $0.09 per share in its upcoming report, which represents a year-over-year change of +181.8%. Revenues are expected to be $14.39 million, up 62.8% from the year-ago quarter.

While FFO and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in FFO estimate revisions and near-term stock price movements.

For Condor Hospitality Trust, Inc., the consensus FFO per share estimate for the quarter has been revised 5.9% lower over the last 30 days to the current level. And a negative trend in FFO estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on CDOR going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank 2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>


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