Apple Hospitality REIT (NYSE:APLE) Sets New 52-Week High Following Strong Earnings

Key Points

• Apple Hospitality REIT beat quarterly expectations, reporting EPS of $0.26 versus analysts’ $0.22 estimate and revenue of $398.33 million versus $384.64 million expected.
• Shares climbed to a new 52-week high of $18.98 after the earnings announcement, up from the prior close of $18.15.
• The company announced a monthly dividend of $0.08 per share, equivalent to a 5.1% yield; analysts’ overall rating remains “Hold,” with an average price target of $17.31.

Shares of Apple Hospitality REIT, Inc. (NYSE:APLE - Get Free Report) reached a new 52-week high during trading on Friday following a better than expected earnings announcement. The stock traded as high as $18.98 and last traded at $18.8530, with a volume of 3,739,718 shares. The stock had previously closed at $18.15.

The real estate investment trust reported $0.26 earnings per share for the quarter, beating the consensus estimate of $0.22 by $0.04. The company had revenue of $398.33 million during the quarter, compared to analysts' expectations of $384.64 million. Apple Hospitality REIT had a return on equity of 5.56% and a net margin of 12.17%.

Apple Hospitality REIT Announces Dividend

The business also recently announced a monthly dividend, which will be paid on Monday, November 16th. Investors of record on Friday, October 30th will be given a dividend of $0.08 per share. This represents a $0.96 annualized dividend and a dividend yield of 5.1%. The ex-dividend date is Friday, October 30th. Apple Hospitality REIT's dividend payout ratio (DPR) is 129.73%.

Analyst Upgrades and Downgrades

APLE has been the subject of several research analyst reports. Bank of America lifted their price objective on Apple Hospitality REIT from $15.00 to $16.00 and gave the company a "neutral" rating in a research report on Monday, July 20th. Barclays increased their target price on Apple Hospitality REIT from $17.00 to $18.00 and gave the stock an "equal weight" rating in a report on Tuesday, October 13th. Zacks Research lowered Apple Hospitality REIT from a "strong-buy" rating to a "hold" rating in a research note on Thursday, August 27th. Wells Fargo & Company lifted their price target on Apple Hospitality REIT from $17.00 to $18.00 and gave the company an "equal weight" rating in a report on Monday, October 26th. Finally, Weiss Ratings reiterated a "buy (b-)" rating on shares of Apple Hospitality REIT in a research report on Tuesday. Three research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company. According to MarketBeat, Apple Hospitality REIT currently has an average rating of "Hold" and an average target price of $17.31.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the company. Bank of America Corp DE lifted its holdings in Apple Hospitality REIT by 6.0% during 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 purchasing an additional 115,575 shares during the last quarter. Hsbc Holdings PLC grew its position in shares of Apple Hospitality REIT by 19.6% in the fourth quarter. Hsbc Holdings PLC now owns 374,968 shares of the real estate investment trust's stock valued at $4,443,000 after purchasing an additional 61,354 shares during the last quarter. VIRGINIA RETIREMENT SYSTEMS ET Al acquired a new position in shares of Apple Hospitality REIT in the second quarter valued at approximately $3,952,000. Bank of New York Mellon Corp bought a new position in shares of Apple Hospitality REIT during the second quarter worth approximately $26,774,000. Finally, Healthcare of Ontario Pension Plan Trust Fund bought a new position in shares of Apple Hospitality REIT during the first quarter worth approximately $3,126,000. Institutional investors own 89.66% of the company's stock.

Apple Hospitality REIT Stock Performance

The company has a market cap of $4.45 billion, a P/E ratio of 25.48, a price-to-earnings-growth ratio of 2.14 and a beta of 0.93. The stock has a 50 day moving average price of $16.67 and a two-hundred day moving average price of $14.77. The company has a quick ratio of 0.73, a current ratio of 0.73 and a debt-to-equity ratio of 0.51.

About Apple Hospitality REIT

Apple Hospitality REIT, Inc is a self-administered and self-managed real estate investment trust that owns a portfolio of upscale, select-service hotels across the United States. The company's properties primarily operate under well-known hospitality brands affiliated with Marriott International, Hilton Worldwide Holdings and Hyatt Hotels Corporation.

Apple Hospitality's hotels provide lodging and related guest services, including accommodations, meeting facilities, food and beverage offerings, and other amenities.

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