Summit Hotel Properties, Inc. (NYSE:INN) Announces Quarterly Dividend of $0.08

Key Points

• Summit Hotel Properties declared a quarterly dividend of $0.08 per share, payable November 30 to shareholders of record as of November 16. The annualized dividend is $0.32, representing a 4.5% yield.
• The current payout is not covered by earnings, with a reported payout ratio of -177.8%; however, analysts expect next year’s earnings to support a more sustainable 40% payout ratio.
• Analyst sentiment is mixed, with the stock carrying an average “Hold” rating and a $5.40 price target, below its reported opening price of $7.07.

Summit Hotel Properties, Inc. (NYSE:INN - Get Free Report) declared a quarterly dividend on Tuesday, October 27th. Shareholders of record on Monday, November 16th will be paid a dividend of $0.08 per share by the real estate investment trust on Monday, November 30th. This represents a $0.32 annualized dividend and a yield of 4.5%. The ex-dividend date is Monday, November 16th.

Summit Hotel Properties has increased its dividend payment by an average of 0.1% annually over the last three years and has increased its dividend annually for the last 2 consecutive years. Summit Hotel Properties has a dividend payout ratio of -177.8% indicating that the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Equities research analysts expect Summit Hotel Properties to earn $0.80 per share next year, which means the company should continue to be able to cover its $0.32 annual dividend with an expected future payout ratio of 40.0%.

Summit Hotel Properties Price Performance

Shares of NYSE:INN opened at $7.07 on Wednesday. The business's 50 day simple moving average is $6.07 and its 200-day simple moving average is $5.54. The firm has a market capitalization of $761.98 million, a price-to-earnings ratio of -30.72 and a beta of 1.29. Summit Hotel Properties has a 12 month low of $3.97 and a 12 month high of $7.17.

Summit Hotel Properties (NYSE:INN - Get Free Report) last released its quarterly earnings results on Wednesday, August 5th. The real estate investment trust reported $0.04 earnings per share for the quarter, topping analysts' consensus estimates of ($0.01) by $0.05. The firm had revenue of $199.02 million during the quarter, compared to analyst estimates of $198.41 million. Summit Hotel Properties has set its FY 2026 guidance at 0.790-0.850 EPS. On average, equities analysts anticipate that Summit Hotel Properties will post 0.77 earnings per share for the current year.

Analysts Set New Price Targets

Several analysts have weighed in on the company. Weiss Ratings lowered Summit Hotel Properties from a "hold (c-)" rating to a "sell (d+)" rating in a report on Thursday, October 8th. Zacks Research downgraded Summit Hotel Properties from a "strong-buy" rating to a "hold" rating in a research note on Monday, August 24th. Two investment analysts have rated the stock with a Buy rating, one has given a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, the stock presently has an average rating of "Hold" and an average target price of $5.40.

Summit Hotel Properties Company Profile

Summit Hotel Properties, Inc is a real estate investment trust (REIT) focused on owning and investing in premium-branded, select-service hotels in the United States. Its properties generally operate under nationally recognized hotel brands and serve business and leisure travelers.

The company's portfolio has included hotels affiliated with major hospitality brands such as Marriott, Hilton, Hyatt and InterContinental Hotels Group. Summit emphasizes select-service properties, which typically offer essential lodging amenities while operating with a more streamlined cost structure than full-service hotels.

Summit Hotel Properties was founded in 2003 and became a publicly traded company in 2011.

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