Reassessing The Changing Outlook For Apple Hospitality REIT Inc. (APLE)

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    SSgA Funds Management, Inc. recently announced the acquisition of new stake in Apple Hospitality REIT Inc. (NYSE:APLE). The institutional investor has increased its shareholding in the Real Estate company by 0.41% to 8.59 million shares with purchase of 34845.0 shares. This fresh investment now brings its stake to 3.85% valued currently at $82.97 million. In addition, Invesco Advisers, Inc. raised its holdings by 4.63 million to 4.86 million shares. And Geode Capital Management LLC has lifted its position by 1.31% or 52441.0 shares – to 4.06 million shares.

    With over 1.24 million Apple Hospitality REIT Inc. (APLE) shares trading Thursday and a closing price of $8.92 on the day, the dollar volume was approximately $11.04 million. The shares have shown a negative weekly performance of -0.89% and its price on 07/30/20 lost nearly -2.19%. Currently, there are 224.29M common shares owned by the public and among those 208.24M shares have been available to trade.

    An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 8 analysts who have offered their price forecasts for APLE have a consensus price objective of $12.71. The analysts have set the share’s price value over the next 12 months at a high of $15.00 and a low of $9.50 should the stock experience a downside. Incidentally, analysts’ outlook for the Apple Hospitality REIT Inc. stock is 2.00 for the next 12 months. The average price target is 29.82% above its last price level and an upside to the estimated low will see the stock gain 6.11% over that period. But an upside of 40.53% will see the stock hit the forecast high price target while mean target price for the stock is $13.00.

    Insiders at the company have transacted a total of 45 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 33 of these insider trades were purchases, accounting for 727,026 shares. Insider sales of the common stock occurred on 12 occasions, with total insider shares sold totaling 101,288 shares.

    The top 3 mutual fund holders in Apple Hospitality REIT Inc. are Vanguard Real Estate Index Fund, Vanguard Total Stock Market Index, and Vanguard Small Cap Index Fund. Vanguard Real Estate Index Fund owns 9.52 million shares of the company’s stock, all valued at over $91.96 million. The company bought an additional 66386.0 shares recently to bring their total holdings to about 4.26% of the shares outstanding. Vanguard Total Stock Market Index bought 8308.0 shares to see its total holdings expand to 6.07 million shares valued at over $58.65 million and representing 2.72% of the shares outstanding. Vanguard Small Cap Index Fund sold -0.19 million shares to bring its total holdings to over 5.32 million shares at a value of $51.38 million. Vanguard Small Cap Index Fund now owns shares totaling to 2.38% of the shares outstanding.

    Shares of Apple Hospitality REIT Inc. (NYSE: APLE) opened at $8.92, down -$0.2 from a prior closing price of $9.12. However, the script later closed the day at $8.92, down -2.19%. The company’s stock has a 5-day price change of -0.89% and -7.85% over the past three months. APLE shares are trading -45.11% year to date (YTD), with the 12-month market performance down to -43.22% lower. It has a 12-month low price of $4.48 and touched a high of $16.88 over the same period. Currently, 1.24 million shares have been traded, compared to an average intraday trading volume of 2.90 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by -1.54%, -11.03%, and -28.18% respectively.

    Institutional ownership of Apple Hospitality REIT Inc. (NYSE: APLE) shares accounts for 66.70% of the company’s 224.29M shares outstanding. Mutual fund holders own 34.92%, while other institutional holders and individual stakeholders account for 6.62% and 29.53% respectively.

    It has a market capitalization of $2.03B and a beta (3y monthly) value of 1.04. The stock’s trailing 12-month PE ratio is 15.25, while the earnings-per-share (ttm) stands at $0.59. The company has a debt-to-equity ratio at 0.63. Price movements for the stock have been influenced by the stock’s volatility, which stands at 3.93% over the week and 4.18% over the month.

    Analysts forecast that Apple Hospitality REIT Inc. (APLE) will achieve an EPS of -$0.29 for the current quarter, -$0.16 for the next quarter and $0.19 for 2021. The lowest estimate earnings-per-share for the quarter is -$0.4 while analysts give the company a high EPS estimate of -$0.19. Comparatively, EPS for the current quarter was $0.28 a year ago. Earnings per share for the fiscal year are expected to decrease by -14.40%, and 132.80% over the next financial year.

    If you are looking to buy this stock, then you may note that the average analyst recommendation by 8 brokerage firm advisors rate Apple Hospitality REIT Inc. (APLE) as a “Moderate Buy” at a consensus score of 2.00. Specifically, 3 Wall Street analysts polled rate the stock as a buy, while 3 of the 8 advise that investors “hold,” and 0 rated it as a “Sell.”

    Looking at the support for the APLE, a number of firms have released research notes about the stock. BofA/Merrill stated their Buy rating for the stock in a research note on June 01, 2020, with the firm’s price target at $13. Barclays coverage for the Apple Hospitality REIT Inc. (APLE) stock in a research note released on March 17, 2020 offered a Equal Weight rating with a price target of $10. CapitalOne was of a view on March 09, 2020 that the stock is Overweight, while Janney gave the stock Buy rating on December 16, 2019, issuing a price target of $18. Barclays on their part issued Overweight rating on August 12, 2019.

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