Home Dividends High Dividend Yield Stock to Track: Summit Hotel Properties (NYSE: INN)

Stock to Track: Summit Hotel Properties (NYSE: INN)


Summit Hotel Properties is part of the REITs industry and real estate sector. The company CEO is Daniel Hansen. Summit Hotel Properties Inc is a self-managed hotel investment company. The Company is engaged in acquiring and owning premium-branded select-service hotels in the upscale and upper midscale segments of the U.S. lodging industry.

Previous Intraday Trading Performance:

The INN stock showed a previous change of -0.15% with an open at 13.44 and a close of 13.44. It reached an intraday high of 13.52 and a low of 13.38.

SeekingAlpha:  Summit Hotel Properties, Inc. (INN) CEO Dan Hansen on Q2 2018 Results - Earnings Call Transcript


The stock has a market cap of $1.4b with 104.7m shares outstanding, of which the float is 100.9m shares. Trading volume reached 325,495 shares compared to its average volume of 514,210 shares. Based on the current average volume and close price, the trading liquidity is bad, highly speculative and an investor may want to avoid this stock.

Historical Trading Performance:

Over the last five trading days, Summit Hotel Properties shares returned -2.18% and in the past 30 trading days it returned -6.28%. Over three months, it changed -6.56%. In one year it has changed -14.62% and within that year its 52-week high was 16.39 and its 52-week low was 12.77. INN stock is 5.25% above its 52 Week Low.

Our calculations show a 200 day moving average of 14.38 and a 50 day moving average of 14.30. Currently INN stock is trading -6.51% below its 200 day moving average and may not be a good opportunity to buy as it may continue to trend down.

SeekingAlpha:  Summit Hotel Properties, Inc. (INN) CEO Dan Hansen on Q2 2018 Results - Earnings Call Transcript


The last annual fiscal EPS for the company was reported at 0.79 that ended on 31st of December 2017, which according to the previous close, that is a PE of 17.01. Based on 4 analyst estimates, the consensus EPS for the next quarter is 0.37. The TTM EPS is 1.36, which comes to a TTM PE of 9.88.

The following are the last four quarter reported earnings per share:
06-30-2018:  0.40
03-31-2018:  0.31
12-31-2017:  0.30
09-30-2017:  0.35

The dividend per share is currently 0.72, which is a dividend yield of 5.36%. Also, the payout ratio is 52.94%, therefore the dividend is safe according to our calculations. INN stock has a high dividend yield, but because the company has sufficient earnings to cover future dividends, it may be a good investment opportunity for an income portfolio.

Base on our calculations, the intrinsic value per share is 23.76, which means it is possibly undervalued and has a margin of safety of 43.44%

Indicators to Watch:

Based on the latest filings, there is 3.70% of insider ownership and 97.70% of institutional ownership. Short-interest is 8,411,729, which is 8.03% of shares outstanding. The short-interest ratio or days-to-cover ratio is 13.72. This stock has a moderate level of short interest, but may still be a buying opportunity depending on other indicators.

The current calculated beta is 1.20

SeekingAlpha:  Sturm, Ruger +12% after earnings, dividend hike

Fundamental Indicators:

Based on last reported financials, the company's return on equity is 4.61%, return on assets is 2.63%, profit margin is 14.20%, price-to-sales is 2.51 and price-to-book is 1.18.

Company Scores:

All scores are out of six:
 3  :Valuation Score
 1  :Past Performance Score
 2  :Financial Strength Score
 1  :Future Growth Score
 2  :Dividend Score
 1  :Overall Score

John Jones
Worked for several Wall Street firms: Salomon Smith Barney, UBS, and Charles Schwab. Has developed skills and gained extensive experience over the years that is used today to uncover winning penny stocks. Also was an attorney for small businesses in Scottsdale, Arizona. That experience and understanding of law provides a unique perspective and edge in discovering quality companies in various industries.