AAT vs. the Market: Who Comes Out on Top This July?

Here’s the breakdown of the month forecast for AAT ($17.94 to $30.70 overall range). The table shows projected price bands, potential ROI against the current price, and the resulting model signal per period.

Over the forecast horizon (2025-07 to 2026-07), AAT’s price is projected by the model to fluctuate between approximately $17.94 and $30.70.

The projected price range remains relatively consistent (from $20.41 – $20.41 to $18.90 – $30.70), implying stable forecast uncertainty.

AAT demonstrates, with its Trailing P/E at 15.05x and Forward P/E at 27.60x, reflects a premium valuation that warrants careful consideration. This reflects stable earnings outlook Meanwhile, its Price/Sales ratio of 3.40x and Price/Book of 1.03x show that the company trades at multiples that warrant attention. These metrics provide insight into market positioning.

From an enterprise value perspective, The enterprise value to revenue ratio of 6.11x indicates reasonable revenue-based valuation, and its the EV/EBITDA multiple of 11.06x suggests reasonable earnings-based valuation. These valuation metrics provide a comprehensive view of the company’s current market positioning.

Although the market considers American Assets Trust, Inc. to be a key player in the REIT – Diversified industry with a 1.54 B market cap, its enterprise value is much higher at 3.09 B, with 1.55B of that value added by debt. Investors are confident about American Assets Trust, Inc.’s future earnings, but keep in mind the risk of that large amount of debt.

The valuation ratios tell an interesting story: at 6.11x revenue and 11.06x EBITDA, American Assets Trust, Inc. trades at a premium to many peers. This reflects the company’s strong market position and brand assets. But it also means the stock may have little room for error. The upcoming 2025-07-29 earnings report will be crucial in showing whether American Assets Trust, Inc.’s businesses can grow into this valuation, while the 2025-06-05 ex-dividend date serves as a reminder that American Assets Trust, Inc. still rewards shareholders even as it invests for growth. Essentially, you’re paying for quality – but quality doesn’t come cheap.

An analysis of the key metrics in AAT’s margin performance shows the company has solid control over its costs and prices. The company is successful in controlling its production costs, as shown by the gross margin of 64.36%, and it also profits well from its core operations, reflected in the 25.55% operating margin. A 55.20% EBITDA margin indicates AAT is capable of generating strong cash flow from its operations before accounting for financing and tax strategies. All things considered, AAT can hold onto around $17.740 in net profit for every $1 of its revenue over the last twelve months. While the business’s revenue is increasing at a slow rate (-1.90%), investors should monitor if this pace can be sustained without eroding profit margins.

AAT’s 249.10 M in EBITDA and 290.42 M in gross profit indicate its raw earning power, while the 80.07 M in net income reveals how effectively it converts that power into bottom-line results. From these indicators, it becomes clear that the company is currently prioritizing strong profitability over rapid, top-line growth. Despite healthy gross margins, there is a significant difference between the company’s gross and net margins (64.36% vs. 17.74%). This is likely due to high operating expenses, interest costs, or taxes, which are key areas for investors to watch. In the future, maintaining steady or improving margins will be critical. AAT needs to defend its pricing power and control operating costs, as this will help sustain profitability, especially if revenue growth moderates.

Here’s the consensus from Wall Street analysts on AAT. The average recommendation is ‘Hold’. This consensus is based on opinions from 2 analysts(s). Targets average $21.00 (within a range of $20.00 – $22.00). Based on the mean target ($21.00), this implies a potential upside of ~3.2% from the current price ($20.35). This reflects overall analyst sentiment on the stock’s outlook.

AAT’s financial health appears robust, showcasing several key strengths. The ROE and ROA of 8.87% and 2.65%, respectively, reflect a highly efficient use of capital, often seen in fast-growing firms. The 1.48x Debt/Equity ratio (with 1.71 B in debt and 147.94 M in cash) points to the fact that AAT has taken on a manageable debt load to fuel its operations and growth. Even with its debt, the company’s ability to bring in 189.20 M in operating cash flow (TTM) proves that its core business can steadily produce cash, which is a significant strength.

The Current Ratio of 4.18x and Quick Ratio of 4.01x show a solid liquidity position, able to cover its short-term liabilities. Furthermore, AAT’s 85.37 M in levered free cash flow suggests it can still generate significant cash for shareholders even after meeting its financial obligations.

In the recent trading period from July 11, 2025 to July 25, 2025, AAT’s stock price achieved a total return of -3.83%. The price fluctuated between a high of $21.40 and a low of $19.96. Average daily trading volume was approximately 360,960 shares.

There is currently 1 M worth of short interest in AAT, and the short ratio (or days to cover) is 2.0x. This means that at the stock’s recent average trading volume, it would take around 2 days for all short positions to be covered. This low level suggests that short sellers do not currently have significant control over the stock’s price, and the risk of a prolonged ‘short squeeze’ is relatively low.

With 17.82% of the public float sold short, a high percentage of the float is being shorted, signaling significant bearish conviction from a portion of the market. This level has remained relatively stable compared to last month’s value of 997 K, suggesting a shift in bearish sentiment. With notable short interest, investors should be aware of potential volatility spikes, which could be triggered by news events that force short sellers to cover their positions.

When looking at the price range over the past year, the stock has seen a high of $29.15 and a low of $16.69. This wide gap tells us the stock has been through significant fluctuations, likely influenced by market sentiment or company-specific news. Currently, the 50-day moving average stands at $20.28, which is slightly below the 200-day moving average of $20.44. This setup may signal a short-term pullback or consolidation phase, especially for technical traders tracking momentum and trend direction.

A beta of 1.17x suggests the stock’s movement is generally in line with the broader market. Combined with a low 30-day annualized volatility of 18.6%, it’s clear this stock sees frequent price swings. For investors, this means potential for gains, but also higher downside risk. These indicators matter when deciding position sizing or entry timing, especially if you’re managing a portfolio that balances stability with growth exposure.

Investing in AAT involves various risks. This section outlines potential factors identified through data analysis and general market considerations. It is not exhaustive.