Chatham Lodging Trust (NYSE:CLDT) Updates FY 2025 Earnings Guidance

Key Points

• Chatham Lodging Trust updated its FY 2025 earnings guidance, predicting EPS of 0.950-1.030 and revenue of $295.0 million-$297.0 million, both below analyst estimates.
• The company declared a quarterly dividend increase from $0.02 to $0.09, offering an annual yield of 5.3%; however, the dividend payout ratio is 600.00%.
• Chatham Lodging Trust's Board of Directors authorized a $25 million share buyback plan, indicating management's belief that the stock is undervalued.

Chatham Lodging Trust (NYSE:CLDT - Get Free Report) issued an update on its FY 2025 earnings guidance on Thursday morning. The company provided earnings per share (EPS) guidance of 0.950-1.030 for the period, compared to the consensus estimate of 0.995. The company issued revenue guidance of $295.0 million-$297.0 million, compared to the consensus revenue estimate of $297.8 million. Chatham Lodging Trust also updated its Q3 2025 guidance to 0.290-0.330 EPS.

Chatham Lodging Trust Price Performance

CLDT traded up $0.03 during midday trading on Thursday, reaching $6.84. 262,620 shares of the company's stock were exchanged, compared to its average volume of 309,194. Chatham Lodging Trust has a 1-year low of $5.83 and a 1-year high of $10.00. The stock has a market capitalization of $334.78 million, a PE ratio of 113.92 and a beta of 1.50. The company has a debt-to-equity ratio of 0.31, a current ratio of 0.97 and a quick ratio of 0.97. The business's 50-day moving average price is $7.10 and its 200 day moving average price is $7.42.

Chatham Lodging Trust (NYSE:CLDT - Get Free Report) last posted its quarterly earnings data on Tuesday, May 6th. The real estate investment trust reported $0.14 EPS for the quarter, topping analysts' consensus estimates of $0.13 by $0.01. Chatham Lodging Trust had a return on equity of 1.38% and a net margin of 3.44%. The firm had revenue of $68.64 million during the quarter, compared to analysts' expectations of $67.99 million. As a group, equities analysts anticipate that Chatham Lodging Trust will post 1.07 EPS for the current fiscal year.

Chatham Lodging Trust Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, July 15th. Shareholders of record on Monday, June 30th were issued a $0.09 dividend. This is a positive change from Chatham Lodging Trust's previous quarterly dividend of $0.02. The ex-dividend date was Monday, June 30th. This represents a $0.36 annualized dividend and a yield of 5.3%. Chatham Lodging Trust's dividend payout ratio (DPR) is presently 600.00%.

Chatham Lodging Trust declared that its Board of Directors has authorized a share buyback plan on Tuesday, May 6th that permits the company to repurchase $25.00 million in outstanding shares. This repurchase authorization permits the real estate investment trust to reacquire up to 7.2% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company's management believes its shares are undervalued.

Analysts Set New Price Targets

Several research firms have commented on CLDT. Stifel Nicolaus cut their price objective on Chatham Lodging Trust from $11.00 to $9.50 and set a "buy" rating on the stock in a research report on Wednesday, April 16th. Alliance Global Partners reissued a "buy" rating on shares of Chatham Lodging Trust in a research report on Tuesday, May 6th.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of CLDT. Royal Bank of Canada raised its stake in shares of Chatham Lodging Trust by 26.7% in the 1st quarter. Royal Bank of Canada now owns 193,422 shares of the real estate investment trust's stock valued at $1,379,000 after acquiring an additional 40,746 shares in the last quarter. AQR Capital Management LLC lifted its position in Chatham Lodging Trust by 35.8% in the first quarter. AQR Capital Management LLC now owns 98,409 shares of the real estate investment trust's stock worth $702,000 after purchasing an additional 25,926 shares during the period. Jane Street Group LLC lifted its holdings in shares of Chatham Lodging Trust by 6.6% during the first quarter. Jane Street Group LLC now owns 289,534 shares of the real estate investment trust's stock valued at $2,064,000 after acquiring an additional 18,030 shares during the period. Acadian Asset Management LLC bought a new position in Chatham Lodging Trust during the 1st quarter valued at about $62,000. Finally, Strs Ohio bought a new stake in Chatham Lodging Trust during the first quarter worth about $61,000. Hedge funds and other institutional investors own 88.37% of the company's stock.

About Chatham Lodging Trust

Chatham Lodging Trust is a self-advised, publicly traded real estate investment trust (REIT) focused primarily on investing in upscale, extended-stay hotels and premium-branded, select-service hotels. The company owns 39 hotels totaling 5,915 rooms/suites in 16 states and the District of Columbia.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.