Apple Hospitality REIT (NYSE:APLE) Hits New 12-Month High After Earnings Beat

Key Points

• Apple Hospitality REIT beat quarterly expectations: EPS was $0.28 versus the $0.27 consensus, while revenue reached $402.55 million, above estimates of $391.88 million. Shares climbed to a new 52-week high of $17.28.
• The company declared a monthly $0.08 dividend payable August 17 to shareholders of record July 31, representing an annualized yield of approximately 5.8%. Its payout ratio stands at 131.51%.
• Analysts remain broadly neutral: APLE has an average “Hold” rating and an average price target of $16.00, despite several brokerages raising their targets.

Apple Hospitality REIT, Inc. (NYSE:APLE - Get Free Report)'s stock price reached a new 52-week high during mid-day trading on Thursday after the company announced better than expected quarterly earnings. The stock traded as high as $17.28 and last traded at $16.7970, with a volume of 274477 shares traded. The stock had previously closed at $16.55.

The real estate investment trust reported $0.28 EPS for the quarter, beating the consensus estimate of $0.27 by $0.01. The firm had revenue of $402.55 million for the quarter, compared to analyst estimates of $391.88 million. Apple Hospitality REIT had a return on equity of 5.43% and a net margin of 12.08%.

Apple Hospitality REIT Dividend Announcement

The company also recently disclosed a monthly dividend, which will be paid on Monday, August 17th. Shareholders of record on Friday, July 31st will be given a $0.08 dividend. The ex-dividend date is Friday, July 31st. This represents a c) dividend on an annualized basis and a dividend yield of 5.8%. Apple Hospitality REIT's payout ratio is presently 131.51%.

Wall Street Analyst Weigh In

A number of brokerages recently issued reports on APLE. BMO Capital Markets boosted their price target on Apple Hospitality REIT from $14.00 to $16.00 and gave the company a "market perform" rating in a report on Friday, June 12th. Wells Fargo & Company lifted their price objective on Apple Hospitality REIT from $15.00 to $17.00 and gave the stock an "equal weight" rating in a research report on Thursday, July 23rd. Weiss Ratings raised Apple Hospitality REIT from a "hold (c)" rating to a "hold (c+)" rating in a research note on Thursday, May 28th. JPMorgan Chase & Co. upped their target price on Apple Hospitality REIT from $15.00 to $16.00 and gave the company a "neutral" rating in a report on Tuesday, July 21st. Finally, Cantor Fitzgerald raised their price target on Apple Hospitality REIT from $14.00 to $16.00 and gave the stock an "overweight" rating in a research note on Wednesday, May 13th. One investment analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and seven have given a Hold rating to the company. According to data from MarketBeat.com, the stock has an average rating of "Hold" and an average target price of $16.00.

Insider Activity

In other Apple Hospitality REIT news, Chairman Glade M. Knight purchased 5,000 shares of the firm's stock in a transaction that occurred on Monday, May 11th. The stock was bought at an average cost of $13.96 per share, for a total transaction of $69,800.00. Following the purchase, the chairman directly owned 747,191 shares in the company, valued at $10,430,786.36. The trade was a 0.67% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. 6.90% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Apple Hospitality REIT

A number of hedge funds and other institutional investors have recently bought and sold shares of APLE. State Street Corp boosted its position in shares of Apple Hospitality REIT by 0.5% in the 4th quarter. State Street Corp now owns 12,962,856 shares of the real estate investment trust's stock worth $154,627,000 after purchasing an additional 68,794 shares in the last quarter. Fuller & Thaler Asset Management Inc. grew its stake in shares of Apple Hospitality REIT by 1.8% in the 4th quarter. Fuller & Thaler Asset Management Inc. now owns 7,107,802 shares of the real estate investment trust's stock worth $84,227,000 after buying an additional 127,327 shares during the last quarter. UBS Group AG increased its position in Apple Hospitality REIT by 60.8% during the 4th quarter. UBS Group AG now owns 4,721,481 shares of the real estate investment trust's stock valued at $55,950,000 after buying an additional 1,786,018 shares in the last quarter. Charles Schwab Investment Management Inc. increased its position in Apple Hospitality REIT by 2.7% during the 4th quarter. Charles Schwab Investment Management Inc. now owns 4,714,872 shares of the real estate investment trust's stock valued at $55,871,000 after buying an additional 125,759 shares in the last quarter. Finally, Centerbridge Partners L.P. raised its stake in Apple Hospitality REIT by 88.2% during the fourth quarter. Centerbridge Partners L.P. now owns 4,229,785 shares of the real estate investment trust's stock valued at $50,123,000 after buying an additional 1,982,000 shares during the last quarter. Hedge funds and other institutional investors own 89.66% of the company's stock.

Apple Hospitality REIT Stock Up 0.6%

The company has a debt-to-equity ratio of 0.54, a current ratio of 0.80 and a quick ratio of 0.80. The stock has a 50 day simple moving average of $16.35 and a 200-day simple moving average of $13.91. The firm has a market cap of $3.93 billion, a PE ratio of 22.76, a PEG ratio of 3.24 and a beta of 0.88.

Apple Hospitality REIT Company Profile

Apple Hospitality REIT NYSE: APLE is a publicly traded real estate investment trust that focuses on acquiring, owning and operating high-quality, upscale, select-service hotels. The company's portfolio primarily consists of properties operated under premium franchise agreements with leading lodging brands such as Marriott, Hilton and Hyatt. Apple Hospitality REIT is self-managed and internally advised, overseeing property management, revenue optimization and asset-level operations through its in-house team of hospitality professionals.

The company's holdings encompass over 200 hotels featuring more than 30,000 guest rooms across a diverse array of markets in the United States.

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