Pebblebrook Hotel Trust (NYSE: PEB) stock fell -2.31% on Monday to $14.37 against a previous-day closing price of $14.71. With 1.19 million shares changed hands, the volume of the stock remained lighter than its average volume of 2.14 million shares. During the session, the REIT – Hotel & Motel company that operates in wider Real Estate sector, reached to the highest price of $14.71 whereas the lowest price it dropped to was $14.27. The 52-week range on PEB shows that it touched its highest point at $17.86 and its lowest point at $12.37 during that stretch. It currently has a 1-year price target of $16.32. With its current market cap of 1.69 billion, PEB has annualized dividend of $0.04 while the current yield stands at 0.28%. Beta for the stock currently stands at 1.82.
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 PEB was down-trending over the past week, with a drop of -3.36%, but this was up by 0.35% over a month. Three-month performance surged to 8.53% while six-month performance rose 8.86%. The stock lost -18.31% in the past year, while it has gained 7.32% so far this year. A look at the trailing 12-month EPS for PEB yields -0.26 with Next year EPS estimates of -0.30. For the next quarter, that number is 0.03. This implies an EPS growth rate of 47.10% for this year and 11.80% for next year. EPS is expected to grow by 9.00% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -22.80%.
Float and Shares Shorts:
At present, 121.70 million PEB shares are outstanding with a float of 118.28 million shares on hand for trading. On Aug 30, 2023, short shares totaled 21.19 million, which was 17.58% higher than short shares on Jul 30, 2023. In addition to Mr. Jon E. Bortz CPA as the firm’s Chairman & CEO, Mr. Raymond D. Martz serves as its Co-Pres, CFO, Treasurer & Sec.
Through their ownership of 133.30% of PEB’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 70.06% of PEB, in contrast to 57.45% held by mutual funds. Shares owned by individuals account for 1.76%. As the largest shareholder in PEB with 16.51% of the stake, The Vanguard Group, Inc. holds 19,897,976 shares worth 19,897,976. A second-largest stockholder of PEB, BlackRock Fund Advisors, holds 18,745,834 shares, controlling over 15.56% of the firm’s shares. Fuller & Thaler Asset Management, is the third largest shareholder in PEB, holding 8,943,291 shares or 7.42% stake. With a 7.22% stake in PEB, the iShares Core S&P Small Cap ETF is the largest stakeholder. A total of 8,704,160 shares are owned by the mutual fund manager. The Undiscovered Managers Behavioral, which owns about 6.16% of PEB stock, is the second-largest Mutual Fund holder. It holds 7,425,441 shares valued at 107.45 million. Vanguard Real Estate Index Fund holds 4.27% of the stake in PEB, owning 5,143,691 shares worth 74.43 million.
An Overview of Recent Financials:
Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jun 29, 2023, PEB reported revenue of $397.52M and operating income of $64.22M. The EBITDA in the recently reported quarter was $122.34M and diluted EPS was $0.12.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for PEB since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With PEB analysts setting a high price target of $28.00 and a low target of $11.00, the average target price over the next 12 months is $16.32. Based on these targets, PEB could surge 94.85% to reach the target high and fall by -23.45% to reach the target low. Reaching the average price target will result in a growth of 13.57% 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.
Summary of Insider Activity:
Insiders traded PEB stock several times over the past three months with 5 Buys and 1 Sells. In these transactions, 51,000 shares were bought while 10,000 shares were sold. The number of buy transactions has increased to 25 while that of sell transactions has risen to 9 over the past year. The total number of shares bought during that period was 340,417 while 101,679 shares were sold.