Apple Hospitality REIT (NYSE:APLE) Issues Quarterly Earnings Results, Beats Expectations By $0.01 EPS

Key Points

• Apple Hospitality REIT beat quarterly expectations: The REIT reported earnings of $0.28 per share versus the $0.27 consensus estimate, while revenue reached $402.55 million, ahead of expectations of $391.88 million.
• The company declared a monthly dividend of $0.08 per share, implying an annualized yield of approximately 5.8%. However, its reported payout ratio was high at 131.51%.
• Analyst sentiment remains mixed: APLE has a consensus “Hold” rating and an average price target of $16.00, compared with its reported trading price of $16.54.

Apple Hospitality REIT (NYSE:APLE - Get Free Report) released its earnings results on Wednesday. The real estate investment trust reported $0.28 earnings per share for the quarter, topping analysts' consensus estimates of $0.27 by $0.01, FiscalAI reports. Apple Hospitality REIT had a net margin of 12.08% and a return on equity of 5.43%. The firm had revenue of $402.55 million for the quarter, compared to the consensus estimate of $391.88 million.

Apple Hospitality REIT Price Performance

APLE traded down $0.01 on Wednesday, hitting $16.54. 3,933,274 shares of the company's stock were exchanged, compared to its average volume of 3,007,217. Apple Hospitality REIT has a fifty-two week low of $10.85 and a fifty-two week high of $17.13. The company has a current ratio of 0.80, a quick ratio of 0.80 and a debt-to-equity ratio of 0.54. The firm has a 50-day moving average price of $16.32 and a 200-day moving average price of $13.88. The stock has a market cap of $3.90 billion, a price-to-earnings ratio of 22.65, a P/E/G ratio of 3.24 and a beta of 0.88.

Apple Hospitality REIT Dividend Announcement

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

Wall Street Analyst Weigh In

APLE has been the subject of a number of analyst reports. LADENBURG THALM/SH SH raised their price objective on Apple Hospitality REIT from $15.00 to $17.00 and gave the company a "neutral" rating in a research report on Thursday, June 18th. BMO Capital Markets boosted their target price on shares of Apple Hospitality REIT from $14.00 to $16.00 and gave the company a "market perform" rating in a research note on Friday, June 12th. Zacks Research raised Apple Hospitality REIT from a "hold" rating to a "strong-buy" rating in a report on Wednesday, July 22nd. Cantor Fitzgerald boosted their price objective on shares of Apple Hospitality REIT from $14.00 to $16.00 and gave the company an "overweight" rating in a research report on Wednesday, May 13th. Finally, Wells Fargo & Company raised their price target on Apple Hospitality REIT from $15.00 to $17.00 and gave the company an "equal weight" rating in a report on Thursday, July 23rd. One equities research analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating and seven have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus target price of $16.00.

Insider Activity at Apple Hospitality REIT

In other Apple Hospitality REIT news, Chairman Glade M. Knight bought 5,000 shares of Apple Hospitality REIT stock in a transaction dated Monday, May 11th. The stock was acquired at an average cost of $13.96 per share, for a total transaction of $69,800.00. Following the completion of the transaction, the chairman directly owned 747,191 shares of the company's stock, valued at approximately $10,430,786.36. This represents a 0.67% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. 6.90% of the stock is owned by company insiders.

Institutional Trading of Apple Hospitality REIT

Large investors have recently bought and sold shares of the business. NewEdge Advisors LLC boosted its holdings in shares of Apple Hospitality REIT by 295.9% during the 1st quarter. NewEdge Advisors LLC now owns 2,427 shares of the real estate investment trust's stock worth $31,000 after purchasing an additional 1,814 shares during the last quarter. EverSource Wealth Advisors LLC increased its holdings in shares of Apple Hospitality REIT by 1,375.0% in the second quarter. EverSource Wealth Advisors LLC now owns 2,832 shares of the real estate investment trust's stock valued at $33,000 after purchasing an additional 2,640 shares during the last quarter. Danske Bank A S purchased a new position in Apple Hospitality REIT during the third quarter worth approximately $36,000. Smartleaf Asset Management LLC lifted its position in Apple Hospitality REIT by 97.5% during the second quarter. Smartleaf Asset Management LLC now owns 3,792 shares of the real estate investment trust's stock worth $45,000 after buying an additional 1,872 shares in the last quarter. Finally, Northwestern Mutual Wealth Management Co. boosted its stake in Apple Hospitality REIT by 22.9% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 6,440 shares of the real estate investment trust's stock worth $75,000 after buying an additional 1,202 shares during the last quarter. Hedge funds and other institutional investors own 89.66% of the company's stock.

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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