Investment analysts at Cantor Fitzgerald have begun coverage of Apple Hospitality REIT (NYSE: APLE), issuing a report that recommends an “overweight” rating alongside a price target of $14.00. This target implies a potential upside of 15.75% from the stock’s current price, reflecting the firm’s positive outlook on the real estate investment trust’s performance.
The new coverage follows various assessments of Apple Hospitality REIT from other financial institutions. Notably, on June 9, BMO Capital Markets downgraded the stock from “outperform” to “market perform,” while also adjusting their price target from $14.00 to $12.00. In contrast, Wells Fargo & Company recently raised its price target from $12.00 to $13.00 and assigned an “equal weight” rating. Overall, three investment analysts have rated the stock as a Buy, while two have issued a Hold rating. According to data from MarketBeat.com, the consensus rating stands at “Moderate Buy,” with a target price of $14.80.
Market Performance and Financial Metrics
On August 6, 2023, Apple Hospitality REIT reported a quarterly earnings per share (EPS) of $0.47, aligning with analysts’ expectations. The firm generated revenue of $384.37 million for the quarter, exceeding estimates of $381.37 million. The company has demonstrated a net margin of 12.71% and a return on equity of 5.58%. Analysts project that Apple Hospitality REIT will achieve an EPS of $1.60 for the current fiscal year.
As of Wednesday, August 9, 2023, shares opened at $12.10. The stock has fluctuated in the past year, reaching a low of $10.44 and a high of $16.50. The company has a market capitalization of $2.87 billion, a price-to-earnings ratio of 16.13, and a beta of 1.02. Key financial ratios include a current ratio of 0.78 and a debt-to-equity ratio of 0.51.
Insider Transactions and Institutional Investments
In a recent move, Glade M. Knight, Chairman of Apple Hospitality REIT, purchased 5,000 shares at an average price of $12.29 per share on August 19, 2023. The total transaction amounted to approximately $61,450, increasing his holdings to 705,344 shares, valued at around $8,668,677.76. This acquisition was disclosed in a legal filing with the Securities and Exchange Commission (SEC), which can be accessed through the SEC website. Currently, insiders own 7.10% of the company’s stock.
Recent trading activity has seen significant institutional involvement. Victory Capital Management Inc. increased its stake in Apple Hospitality REIT by 9.4% during the first quarter, now owning 7,401,428 shares worth approximately $95,552,000. Similarly, T. Rowe Price Investment Management Inc. raised its position by 1.3%, while Nuveen LLC acquired a new stake valued at about $40,841,000. LSV Asset Management and Systematic Financial Management LP also increased their holdings in the second quarter. Overall, institutional investors and hedge funds control 89.66% of the stock.
Apple Hospitality REIT, Inc. owns one of the largest and most diverse portfolios of upscale, rooms-focused hotels in the United States. The company’s portfolio includes 223 hotels with over 29,400 guest rooms across 87 markets in 37 states, in addition to one property leased to third parties. As Apple Hospitality REIT continues to navigate the evolving market, its recent analyst coverage and insider activity may signal optimism for investors looking at the hospitality sector.
