Summit Hotel Properties (INN) Declares $0.04 Dividend

Summit Hotel Properties said on January 26, 2023 that its board of directors declared a regular quarterly dividend of $0.04 per share ($0.16 annualized). Shareholders of record as of February 13, 2023 will receive the payment on February 28, 2023. Previously, the company paid $0.04 per share.

At the current share price of $8.52 / share, the stock's dividend yield is 1.88%. Looking back five years and taking a sample every week, the average dividend yield has been 5.46%, the lowest has been 1.78%, and the highest has been 19.89%. The standard deviation of yields is 2.29 (n=125).

The current dividend yield is 1.56 standard deviations below the historical average.

Additionally, the company's dividend payout ratio is -7.80. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.

The company's 3-Year dividend growth rate is -0.78%.

Analyst Price Forecast Suggests 11.34% Upside

As of February 1, 2023, the average one-year price target for Summit Hotel Properties is $9.49. The forecasts range from a low of $8.08 to a high of $11.55. The average price target represents an increase of 11.34% from its latest reported closing price of $8.52.

The projected annual revenue for Summit Hotel Properties is $778MM, an increase of 27.51%. The projected annual EPS is $0.18.

Fund Sentiment

There are 461 funds or institutions reporting positions in Summit Hotel Properties. This is a decrease of 24 owner(s) or 4.95%.

Average portfolio weight of all funds dedicated to US:INN is 0.0782%, an increase of 7.1530%. Total shares owned by institutions increased in the last three months by 0.67% to 121,500K shares.

What are large shareholders doing?

IJR - iShares Core S&P Small-Cap ETF holds 7,861,966 shares representing 7.35% ownership of the company. In it's prior filing, the firm reported owning 7,511,455 shares, representing an increase of 4.46%. The firm decreased its portfolio allocation in INN by 1.81% over the last quarter.

Jennison Associates holds 6,696,812 shares representing 6.26% ownership of the company. In it's prior filing, the firm reported owning 5,916,261 shares, representing an increase of 11.66%. The firm decreased its portfolio allocation in INN by 43.83% over the last quarter.

Macquarie Group holds 4,983,270 shares representing 4.66% ownership of the company. In it's prior filing, the firm reported owning 4,666,561 shares, representing an increase of 6.36%. The firm increased its portfolio allocation in INN by 7.88% over the last quarter.

VGSIX - Vanguard Real Estate Index Fund Investor Shares holds 4,851,483 shares representing 4.54% ownership of the company. In it's prior filing, the firm reported owning 4,879,645 shares, representing a decrease of 0.58%. The firm increased its portfolio allocation in INN by 31.78% over the last quarter.

GW&K Investment Management holds 3,493,733 shares representing 3.27% ownership of the company. In it's prior filing, the firm reported owning 3,223,282 shares, representing an increase of 7.74%. The firm decreased its portfolio allocation in INN by 31.27% over the last quarter.

Summit Hotel Properties Background Information
(This description is provided by the company.)

Summit Hotel Properties, Inc. is a publicly traded real estate investment trust focused on owning premium-branded hotels with efficient operating models primarily in the Upscale segment of the lodging industry. As of February 23, 2021, the Company's portfolio consisted of 72 hotels, 67 of which are wholly owned, with a total of 11,288 guestrooms located in 23 states.

This story originally appeared on Fintel.