Donald Smith & CO. Inc. Increases Position in Chatham Lodging Trust (REIT) (NYSE:CLDT)

Key Points

• Donald Smith & CO. Inc. increased its stake in Chatham Lodging Trust (REIT) by 9.3%, holding approximately $35.06 million worth of shares after acquiring an additional 419,235 shares in the 1st quarter.
• Chatham Lodging Trust reported a quarterly earnings per share of $0.36, exceeding analysts' expectations of $0.34, while revenues reached $80.29 million.
• The company announced a dividend increase from $0.02 to $0.09 per share, reflecting a significant annualized yield of 5.3%.

Donald Smith & CO. Inc. boosted its holdings in shares of Chatham Lodging Trust (REIT) (NYSE:CLDT - Free Report) by 9.3% in the first quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 4,916,914 shares of the real estate investment trust's stock after purchasing an additional 419,235 shares during the period. Donald Smith & CO. Inc. owned about 10.04% of Chatham Lodging Trust worth $35,058,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other institutional investors and hedge funds also recently added to or reduced their stakes in the business. Lazard Asset Management LLC acquired a new position in shares of Chatham Lodging Trust in the fourth quarter worth about $56,000. Quarry LP raised its position in shares of Chatham Lodging Trust by 23.5% in the fourth quarter. Quarry LP now owns 7,487 shares of the real estate investment trust's stock worth $67,000 after acquiring an additional 1,423 shares during the period. KLP Kapitalforvaltning AS acquired a new position in shares of Chatham Lodging Trust in the fourth quarter worth about $68,000. GAMMA Investing LLC raised its position in shares of Chatham Lodging Trust by 565.4% in the first quarter. GAMMA Investing LLC now owns 9,568 shares of the real estate investment trust's stock worth $68,000 after acquiring an additional 8,130 shares during the period. Finally, Quantinno Capital Management LP acquired a new position in shares of Chatham Lodging Trust in the fourth quarter worth about $94,000. 88.37% of the stock is currently owned by institutional investors and hedge funds.

Chatham Lodging Trust Price Performance

Shares of CLDT traded up $0.10 during mid-day trading on Tuesday, hitting $6.95. 9,229 shares of the company were exchanged, compared to its average volume of 306,136. Chatham Lodging Trust has a 1-year low of $5.83 and a 1-year high of $10.00. The company has a debt-to-equity ratio of 0.27, a quick ratio of 1.07 and a current ratio of 1.07. The company has a 50 day moving average of $7.08 and a 200-day moving average of $7.36. The stock has a market cap of $340.41 million, a price-to-earnings ratio of 231.47 and a beta of 1.50.

Chatham Lodging Trust (NYSE:CLDT - Get Free Report) last released its quarterly earnings results on Wednesday, August 6th. The real estate investment trust reported $0.36 earnings per share for the quarter, topping the consensus estimate of $0.34 by $0.02. Chatham Lodging Trust had a net margin of 3.04% and a return on equity of 1.19%. The firm had revenue of $80.29 million during the quarter, compared to the consensus estimate of $79.67 million. Analysts expect that Chatham Lodging Trust will post 1.07 EPS for the current fiscal year.

Chatham Lodging Trust declared that its board has approved a stock buyback plan on Tuesday, May 6th that permits the company to repurchase $25.00 million in shares. This repurchase authorization permits the real estate investment trust to purchase up to 7.2% of its shares through open market purchases. Shares repurchase plans are generally an indication that the company's board believes its shares are undervalued.

Chatham Lodging Trust Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, July 15th. Investors of record on Monday, June 30th were paid a $0.09 dividend. The ex-dividend date of this dividend was Monday, June 30th. This represents a $0.36 annualized dividend and a yield of 5.2%. This is an increase from Chatham Lodging Trust's previous quarterly dividend of $0.02. Chatham Lodging Trust's dividend payout ratio is currently 1,200.00%.

Analyst Ratings Changes

A number of brokerages have weighed in on CLDT. Stifel Nicolaus decreased their price objective on shares of Chatham Lodging Trust from $11.00 to $9.50 and set a "buy" rating for the company in a research report on Wednesday, April 16th. Alliance Global Partners reiterated a "buy" rating on shares of Chatham Lodging Trust in a research report on Tuesday, May 6th.

Chatham Lodging Trust Company Profile

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.