Summit Hotel Properties (NYSE:INN) Shares Gap Down - Time to Sell?

Key Points

• Summit Hotel Properties' share price gapped down from $5.11 to $4.61, closing at $5.08 with a trading volume of 180,846 shares.
• Bank of America raised its price target for the stock from $5.00 to $5.75, while Wall Street Zen downgraded its rating from "hold" to "sell."
• The recently announced quarterly dividend of $0.08 per share represents a 6.3% yield, but the company's dividend payout ratio is a high 200%.

Summit Hotel Properties, Inc. (NYSE:INN - Get Free Report)'s share price gapped down before the market opened on Wednesday . The stock had previously closed at $5.11, but opened at $4.61. Summit Hotel Properties shares last traded at $5.08, with a volume of 180,846 shares trading hands.

Wall Street Analysts Forecast Growth

A number of equities research analysts have commented on INN shares. Bank of America raised their price target on shares of Summit Hotel Properties from $5.00 to $5.75 and gave the stock a "neutral" rating in a report on Monday, July 21st. Wall Street Zen lowered Summit Hotel Properties from a "hold" rating to a "sell" rating in a research report on Thursday, May 22nd.

Summit Hotel Properties Trading Down 1.1%

The firm has a market cap of $567.27 million, a price-to-earnings ratio of 31.60 and a beta of 1.73. The firm's 50-day moving average is $5.05 and its 200-day moving average is $5.24. The company has a current ratio of 0.91, a quick ratio of 0.91 and a debt-to-equity ratio of 1.08.

Summit Hotel Properties Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Friday, August 29th. Stockholders of record on Friday, August 15th will be issued a $0.08 dividend. This represents a $0.32 dividend on an annualized basis and a dividend yield of 6.3%. The ex-dividend date is Friday, August 15th. Summit Hotel Properties's dividend payout ratio (DPR) is currently 200.00%.

Insider Activity

In related news, Director Thomas W. Storey purchased 16,270 shares of the stock in a transaction that occurred on Tuesday, May 13th. The stock was acquired at an average cost of $4.62 per share, with a total value of $75,167.40. Following the transaction, the director owned 231,337 shares of the company's stock, valued at $1,068,776.94. This represents a 7.57% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. 3.37% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in INN. Nuveen LLC purchased a new stake in Summit Hotel Properties in the 1st quarter valued at about $16,641,000. H 2 Credit Manager LP increased its position in shares of Summit Hotel Properties by 24.3% during the 4th quarter. H 2 Credit Manager LP now owns 8,909,500 shares of the real estate investment trust's stock valued at $61,030,000 after purchasing an additional 1,742,169 shares during the last quarter. Strs Ohio increased its holdings in Summit Hotel Properties by 3,028.7% during the second quarter. Strs Ohio now owns 588,200 shares of the real estate investment trust's stock worth $2,994,000 after buying an additional 569,400 shares during the last quarter. Invesco Ltd. raised its position in Summit Hotel Properties by 75.0% in the first quarter. Invesco Ltd. now owns 784,585 shares of the real estate investment trust's stock worth $4,245,000 after acquiring an additional 336,150 shares during the period. Finally, Jacobs Levy Equity Management Inc. purchased a new position in Summit Hotel Properties in the first quarter valued at about $1,541,000. 96.47% of the stock is currently owned by hedge funds and other institutional investors.

Summit Hotel Properties Company Profile

Summit Hotel Properties, Inc is a publicly traded real estate investment trust focused on owning premium-branded lodging properties with efficient operating models primarily in the upscale segment of the lodging industry. As of November 1, 2023, the Company's portfolio consisted of 101 assets, 57 of which are wholly owned, with a total of 15,035 guestrooms located in 24 states.

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