Citigroup Inc., the multinational investment bank, has reported a 6.8% decrease in its stake in Apple Hospitality REIT, Inc. (NYSE:APLE), according to its most recent Form 13F filing with the Securities & Exchange Commission (SEC). The investor owned 97,861 shares of the real estate investment trust’s stock and sold 7,129 shares during the period. Citigroup’s holdings in Apple Hospitality REIT still amount to $1,544,000 as of its most recent filing with the SEC.
Apple Hospitality REIT recently announced a monthly dividend scheduled for payment on Thursday, June 15th to stockholders of record on Wednesday, May 31st. An ex-dividend date for this dividend was announced for Tuesday, May 30th. This equates to a dividend yield of 6.62% and an annualized dividend payment of $0.96 per share. The firm currently has a dividend payout ratio of approximately 137%.
The decision by Citigroup is not only because Apple Hospitality REIT experienced a decline from a “buy” rating from Compass Point to a “neutral” rating but also several analysts have reviewed their ratings on APLE within the last quarter. StockNews.com rated the stock as “hold”, while Wells Fargo upgraded it to “overweight”. B. Riley downgraded their target price earlier this month from $20.00 to $19.00.
The middle-ground rating held by five analysts at present raises questions about what lies ahead for Apple Hospitality REIT while I see that Compass Point’s suggestion that Citigroup downgrade their expected final stock value for APLE might indicate pessimism towards this particular security.
In conclusion, investors should consider that underperforming stocks can experience downgrading from firms like Wells Fargo or Compass Point or they may even be given neutral ratings instead of buy recommendations such as offered by StockNews.com, APLE is evidently not performing at its best and it might be wise to keep a neutral stance for now. However, it would be best to wait until the upcoming quarterly report before making any major decisions in this regard.
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Institutional Investors and Hedge Funds Show Interest in Apple Hospitality REIT
On May 28, 2023, Apple Hospitality REIT found itself under the microscope of many institutional investors and hedge funds. Several investors have modified their holdings of APLE with HighTower Advisors LLC acquiring a new position in the company worth $366,000 and Acadian Asset Management LLC also acquiring a new position worth $25,000 during the first quarter. US Bancorp DE boosted its position by 67.6% during that same period while MetLife Investment Management LLC upped their stake by 55%.
Raymond James & Associates saw an increase in their shareholdings of Apple Hospitality REIT by 11.8% during the first quarter which amounted to them owning 99,450 shares in the Real Estate Investment Trust’s stock worth $1,787,000 after purchasing an additional 10,534 shares in the last quarter.
Recently, Chairman Glade M. Knight purchased 5,000 shares from his own firm for a total transaction amounting to $77,500 at an average cost of $15.50 per share as disclosed in a document filed with the SEC which can be accessed through their website. After this acquisition, Glade M. Knight now owns 568,109 shares in the company valued at approximately $8,805,689.50.
In general market news about Apple Hospitality REIT Inc., trade on Friday showed them open at $14.51 on the NYSE:APLE platform with a market capitalization of $3.32 billion and a price-to-earnings ratio of 20.73 while its PEG or price/earnings-to-growth ratio is at 1.55 with a beta of 1.17 indicating volatile movement.
It must be noted that as of writing this article on May 28th no immediate reasons were given behind these moves but it does warrant keeping an eye on Apple Hospitality REIT for potential updates or developments in the future.
