Summit Hotel Properties (NYSE:INN) Shares Gap Down – Here’s Why

Summit Hotel Properties, Inc. (NYSE:INN) gapped down prior to trading on Friday . The stock had previously closed at $5.52, but opened at $5.35. Summit Hotel Properties shares last traded at $5.43, with a volume of 75,775 shares trading hands.

Analyst Ratings Changes

INN has been the subject of several research reports. Robert W. Baird lowered their target price on Summit Hotel Properties from $5.00 to $4.50 and set a “neutral” rating for the company in a research note on Friday. Bank of America lifted their target price on Summit Hotel Properties from $5.00 to $5.75 and gave the company a “neutral” rating in a research note on Monday, July 21st. Zacks Research lowered Summit Hotel Properties from a “hold” rating to a “strong sell” rating in a research report on Wednesday, September 3rd. Weiss Ratings restated a “sell (d)” rating on shares of Summit Hotel Properties in a research report on Saturday, September 27th. Finally, Wall Street Zen upgraded Summit Hotel Properties from a “sell” rating to a “hold” rating in a research report on Saturday, August 9th. Two equities research analysts have rated the stock with a Hold rating and two have given a Sell rating to the company’s stock. According to MarketBeat.com, the stock presently has a consensus rating of “Reduce” and a consensus target price of $5.13.

Summit Hotel Properties Price Performance

The company has a 50-day moving average price of $5.47 and a 200-day moving average price of $4.97. The company has a debt-to-equity ratio of 1.11, a quick ratio of 0.80 and a current ratio of 0.80. The firm has a market capitalization of $590.62 million, a P/E ratio of -60.31 and a beta of 1.70.

Summit Hotel Properties (NYSE:INN) last posted its earnings results on Tuesday, August 5th. The real estate investment trust reported $0.27 earnings per share for the quarter, topping the consensus estimate of $0.26 by $0.01. The firm had revenue of $192.92 million for the quarter, compared to analyst estimates of $194.49 million. Summit Hotel Properties had a return on equity of 0.56% and a net margin of 1.00%. Summit Hotel Properties has set its FY 2025 guidance at 0.900-0.900 EPS. On average, sell-side analysts predict that Summit Hotel Properties, Inc. will post 0.88 earnings per share for the current year.

Summit Hotel Properties Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, August 29th. Shareholders of record on Friday, August 15th were issued a dividend of $0.08 per share. The ex-dividend date was Friday, August 15th. This represents a $0.32 annualized dividend and a yield of 5.9%. Summit Hotel Properties’s payout ratio is currently -355.56%.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in INN. Long Pond Capital LP bought a new position in Summit Hotel Properties during the second quarter worth about $47,846,000. Nuveen LLC bought a new position in Summit Hotel Properties during the first quarter worth about $16,641,000. Strs Ohio raised its stake in shares of Summit Hotel Properties by 3,028.7% in the 2nd quarter. Strs Ohio now owns 588,200 shares of the real estate investment trust’s stock valued at $2,994,000 after purchasing an additional 569,400 shares during the period. Invesco Ltd. raised its stake in shares of Summit Hotel Properties by 75.0% in the 1st quarter. Invesco Ltd. now owns 784,585 shares of the real estate investment trust’s stock valued at $4,245,000 after purchasing an additional 336,150 shares during the period. Finally, Jacobs Levy Equity Management Inc. acquired a new stake in shares of Summit Hotel Properties in the 1st quarter valued at about $1,541,000. 96.47% of the stock is currently owned by institutional investors.

About Summit Hotel Properties

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.