A History of Outperforming Analyst Forecasts and Beating the Odds: Summit Hotel Properties Inc. (INN)

Summit Hotel Properties Inc. (NYSE: INN) stock fell -4.13% on Friday to $7.19 against a previous-day closing price of $7.50. With 1.59 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.67 million shares. During the session, the REIT – Hotel & Motel company that operates in wider Real Estate sector, reached to the highest price of $7.52 whereas the lowest price it dropped to was $7.09. 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 $11.00. With its current market cap of 741.00 million, INN has annualized dividend of $0.16 while the current yield stands at 2.23%. Beta for the stock currently stands at 1.95.

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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 down-trending over the past week, with a drop of -4.52%, but this was down by -14.91% over a month. Three-month performance surged to 5.74% while six-month performance fell -25.18%. The stock lost -26.63% in the past year, while it has lost -26.33% so far this year. A look at the trailing 12-month EPS for INN yields -0.30 with Next year EPS estimates of 0.23. For the next quarter, that number is 0.03. This implies an EPS growth rate of 47.30% for this year and 866.70% for next year.

Float and Shares Shorts:

At present, 105.20 million INN shares are outstanding with a float of 103.76 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.

Institutional Ownership:

Through their ownership of 100.23% of INN’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 57.97% of INN, in contrast to 4.76% held by mutual funds. Shares owned by individuals account for 39.85%. As the largest shareholder in INN with 16.24% of the stake, BlackRock Fund Advisors holds 17,359,504 shares worth 17,359,504. A second-largest stockholder of INN, The Vanguard Group, Inc., holds 15,190,016 shares, controlling over 14.21% of the firm’s shares. SSgA Funds Management, Inc. is the third largest shareholder in INN, holding 6,982,325 shares or 6.53% stake. With a 7.44% stake in INN, the iShares Core S&P Small Cap ETF is the largest stakeholder. A total of 7,957,716 shares are owned by the mutual fund manager. The Vanguard Real Estate Index Fund, which owns about 4.56% of INN stock, is the second-largest Mutual Fund holder. It holds 4,873,237 shares valued at 38.3 million. Delaware Small Cap Value Fund holds 2.99% of the stake in INN, owning 3,199,900 shares worth 25.15 million.

Analysts Ratings:

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, 2 believe that the stock is worth HOLDING, 2 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 $10.80. Based on these targets, INN could surge 94.71% to reach the target high and rise by 39.08% to reach the target low. Reaching the average price target will result in a growth of 50.21% 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 -$0.12 being high and -$0.12 being low. For INN, this leads to a yearly average estimate of -$0.12. 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 -$0.03 and the low estimate is -$0.03. The average estimate for the next quarter is thus -$0.03.

Summary of Insider Activity:

Insiders traded INN stock several times over the past three months with 0 Buys and 0 Sells. In these transactions, 0 shares were bought while 0 shares were sold. The number of buy transactions has increased to 20 while that of sell transactions has risen to 9 over the past year. The total number of shares bought during that period was 686,792 while 490,347 shares were sold.

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