Edgestream Partners Increases Stake in Apple Hospitality REIT by 493%

Edgestream Partners L.P. significantly expanded its investment in Apple Hospitality REIT, Inc. (NYSE: APLE) during the second quarter of 2023, as disclosed in its recent Form 13F filing with the Securities and Exchange Commission. The investment firm raised its holdings by an impressive 493.1%, acquiring an additional 816,574 shares, which brings its total ownership to 982,159 shares. As of this filing, Edgestream’s holdings are valued at approximately $11.46 million.

Several other institutional investors have also adjusted their holdings in Apple Hospitality REIT. Notably, T. Rowe Price Investment Management Inc. increased its stake by 1.3% in the first quarter, now owning 6,401,005 shares valued at $82.64 million. Meanwhile, Nuveen LLC acquired a new position worth $40.84 million during the same period. Additional investments were made by LSV Asset Management, which boosted its stake by 8.8%, and Bank of New York Mellon Corp, which increased its position by 9.6% in the second quarter, bringing its total to 1,738,988 shares valued at $20.29 million.

Currently, institutional investors and hedge funds own approximately 89.66% of Apple Hospitality REIT’s stock.

Analysts Offer Mixed Ratings on Apple Hospitality REIT

Recent analyst reports provide a mixed outlook for Apple Hospitality REIT. On October 3, 2023, Robert W. Baird reduced its price target from $14.00 to $13.00 while maintaining an “outperform” rating. Conversely, Wells Fargo & Company upgraded the stock to a “hold” rating on the same day. Weiss Ratings continues to advocate a “hold (C-)” rating, while Bank of America downgraded the stock from “buy” to “neutral,” setting a price target of $11.50.

MarketBeat.com reports that analysts are generally divided, with two recommending a Buy rating and four suggesting a Hold. The consensus rating stands at “Hold” with a target price of $12.70.

Apple Hospitality REIT’s Financial Performance and Dividend Announcement

On November 3, 2023, Apple Hospitality REIT reported its quarterly earnings, showcasing an earnings per share (EPS) of $0.42, exceeding analysts’ expectations of $0.40 by $0.02. The company achieved a net margin of 12.71% and a return on equity of 5.58%. Revenue for the quarter reached $373.88 million, surpassing forecasts of $371.94 million.

In a recent update, Apple Hospitality REIT announced a monthly dividend of $0.08, set to be paid on December 15, 2023. Shareholders on record as of November 28, 2023 will be eligible for this dividend, which represents an annualized yield of 8.0%. The dividend payout ratio is currently at 131.51%.

Apple Hospitality REIT, Inc. is a publicly traded real estate investment trust (REIT), recognized for its extensive portfolio of upscale hotels across the United States. The company operates 223 hotels with over 29,400 guest rooms, strategically located in 87 markets across 37 states.

As the company continues to navigate the evolving landscape of the hospitality industry, investor interest remains strong, underscoring the potential for future growth within its diversified portfolio.