Apple Hospitality REIT Sees Unusually Large Options Volume (NYSE:APLE)

Key Points

• Options activity surged: Investors purchased 3,046 APLE call options, roughly 1,454% above the typical daily volume of 196 contracts.
• Analyst sentiment remains cautious: Apple Hospitality REIT has a consensus “Hold” rating from analysts, with an average price target of $16.94 versus the reported share price of $16.36.
• Income and institutional support stand out: Institutional investors own 89.66% of the stock, while the company announced a monthly dividend of $0.08 per share, representing a 5.9% annualized yield.

Apple Hospitality REIT, Inc. (NYSE:APLE - Get Free Report) saw some unusual options trading on Monday. Investors bought 3,046 call options on the stock. This represents an increase of approximately 1,454% compared to the typical daily volume of 196 call options.

Wall Street Analyst Weigh In

A number of equities analysts have recently commented on the company. Bank of America lifted their price objective on Apple Hospitality REIT from $15.00 to $16.00 and gave the stock a "neutral" rating in a research note on Monday, July 20th. Cantor Fitzgerald reaffirmed an "overweight" rating on shares of Apple Hospitality REIT in a research report on Friday, August 21st. Zacks Research lowered Apple Hospitality REIT from a "strong-buy" rating to a "hold" rating in a report on Thursday, August 27th. Compass Point raised Apple Hospitality REIT from a "neutral" rating to a "buy" rating and increased their price objective for the company from $17.50 to $18.50 in a research report on Friday, August 7th. Finally, Wells Fargo & Company raised their price objective on shares of Apple Hospitality REIT from $15.00 to $17.00 and gave the stock an "equal weight" rating in a research note on Thursday, July 23rd. Three analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of "Hold" and an average price target of $16.94.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in APLE. Bank of America Corp DE increased its position in shares of Apple Hospitality REIT by 6.0% in the 1st quarter. Bank of America Corp DE now owns 2,049,081 shares of the real estate investment trust's stock valued at $23,585,000 after buying an additional 115,575 shares in the last quarter. Louisiana State Employees Retirement System bought a new position in Apple Hospitality REIT during the first quarter worth about $1,123,000. Hsbc Holdings PLC lifted its holdings in Apple Hospitality REIT by 19.6% during the fourth quarter. Hsbc Holdings PLC now owns 374,968 shares of the real estate investment trust's stock worth $4,443,000 after acquiring an additional 61,354 shares in the last quarter. VIRGINIA RETIREMENT SYSTEMS ET Al acquired a new position in Apple Hospitality REIT in the second quarter valued at about $3,952,000. Finally, Bank of New York Mellon Corp acquired a new position in Apple Hospitality REIT in the second quarter valued at about $26,774,000. Institutional investors and hedge funds own 89.66% of the company's stock.

Apple Hospitality REIT Price Performance

Shares of APLE traded up $0.06 on Monday, hitting $16.36. The company's stock had a trading volume of 461,951 shares, compared to its average volume of 2,896,428. The company has a market capitalization of $3.86 billion, a PE ratio of 22.12, a PEG ratio of 3.20 and a beta of 0.92. Apple Hospitality REIT has a fifty-two week low of $10.85 and a fifty-two week high of $17.28. The company has a 50 day moving average price of $16.03 and a 200 day moving average price of $15.19. The company has a debt-to-equity ratio of 0.51, a current ratio of 0.73 and a quick ratio of 0.73.

Apple Hospitality REIT (NYSE:APLE - Get Free Report) last issued its quarterly earnings data on Wednesday, August 5th. The real estate investment trust reported $0.28 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.27 by $0.01. Apple Hospitality REIT had a return on equity of 5.56% and a net margin of 12.17%. The firm had revenue of $402.55 million during the quarter, compared to the consensus estimate of $391.88 million. On average, research analysts anticipate that Apple Hospitality REIT will post 1.60 earnings per share for the current fiscal year.

Apple Hospitality REIT Dividend Announcement

The firm also recently announced a monthly dividend, which will be paid on Thursday, October 15th. Shareholders of record on Wednesday, September 30th will be issued a dividend of $0.08 per share. This represents a $0.96 dividend on an annualized basis and a yield of 5.9%. The ex-dividend date of this dividend is Wednesday, September 30th. Apple Hospitality REIT's payout ratio is currently 129.73%.

Apple Hospitality REIT Company Profile

Apple Hospitality REIT, Inc NYSE: APLE is a self-administered real estate investment trust focused on owning and operating upscale, select-service hotels. The company's properties primarily operate under well-known lodging brands affiliated with Marriott International, Hilton Worldwide and Hyatt Hotels Corporation.

Apple Hospitality's portfolio includes hotels serving business and leisure travelers in a range of urban, suburban and destination markets. Its properties are located across the United States, with a focus on geographically diverse markets and hotels that offer amenities such as guest rooms, meeting spaces, fitness facilities, swimming pools and limited food-and-beverage services.

The company was formed in 2007 and became publicly traded in 2015.

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