Summit Hotel Properties Inc. (NYSE: INN) stock jumped 4.74% on Friday to $8.18 against a previous-day closing price of $7.81. With 1.32 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.84 million shares. During the session, the REIT – Hotel & Motel company that operates in wider Real Estate sector, reached to the highest price of $8.38 whereas the lowest price it dropped to was $7.85. The 52-week range on INN shows that it touched its highest point at $10.94 and its lowest point at $6.70 during that stretch. It currently has a 1-year price target of $11.83. Beta for the stock currently stands at 2.02.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of INN was up-trending over the past week, with a rise of 5.82%, but this was up by 12.98% over a month. Three-month performance dropped to -16.10% while six-month performance fell -13.89%. The stock lost -6.19% in the past year, while it has lost -16.19% so far this year. A look at the trailing 12-month EPS for INN yields -0.58 with Next year EPS estimates of 0.03. For the next quarter, that number is -0.06. This implies an EPS growth rate of 47.30% for this year and 112.50% for next year.
Float and Shares Shorts:
At present, 104.90 million INN shares are outstanding with a float of 103.44 million shares on hand for trading. On Jul 14, 2022, short shares totaled 4.56 million, which was 4.27% higher than short shares on Jun 14, 2022. In addition to Mr. Jonathan P. Stanner as the firm’s Pres, CEO & Director, Mr. William H. Conkling serves as its Exec. VP & CFO.
Through their ownership of 100.23% of INN’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 56.38% of INN, in contrast to 42.80% held by mutual funds. Shares owned by individuals account for 4.76%. As the largest shareholder in INN with 16.00% of the stake, BlackRock Fund Advisors holds 17,107,944 shares worth 17,107,944. A second-largest stockholder of INN, The Vanguard Group, Inc., holds 15,506,476 shares, controlling over 14.51% of the firm’s shares. SSgA Funds Management, Inc. is the third largest shareholder in INN, holding 6,939,672 shares or 6.49% stake. With a 7.06% stake in INN, the iShares Core S&P Small Cap ETF is the largest stakeholder. A total of 7,548,927 shares are owned by the mutual fund manager. The Vanguard Real Estate Index Fund, which owns about 4.58% of INN stock, is the second-largest Mutual Fund holder. It holds 4,898,113 shares valued at 35.61 million. Delaware Small Cap Value Fund holds 2.99% of the stake in INN, owning 3,199,900 shares worth 23.26 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for INN since 6 analysts follow the stock currently. There are 1 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 1 believe that the stock is worth HOLDING, 3 give it an OVERWEIGHT rating, and 1 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With INN analysts setting a high price target of $14.00 and a low target of $10.00, the average target price over the next 12 months is $11.80. Based on these targets, INN could surge 71.15% to reach the target high and rise by 22.25% to reach the target low. Reaching the average price target will result in a growth of 44.25% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. INN will report FY 2022 earnings on 02/22/2023. Analysts have provided yearly estimates in a range of -$0.24 being high and -$0.24 being low. For INN, this leads to a yearly average estimate of -$0.24. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Summit Hotel Properties Inc. surprised analysts by $0.13 when it reported $0.07 EPS against a consensus estimate of -$0.06. The surprise factor in the prior quarter was $0.03. Based on analyst estimates, the high estimate for the next quarter is -$0.01 and the low estimate is -$0.01. The average estimate for the next quarter is thus -$0.01.
Summary of Insider Activity:
Insiders traded INN stock several times over the past three months with 7 Buys and 1 Sells. In these transactions, 81,655 shares were bought while 7,528 shares were sold. The number of buy transactions has increased to 20 while that of sell transactions has risen to 12 over the past year. The total number of shares bought during that period was 686,792 while 885,347 shares were sold.