Is Summit Hotel Stock a Good Investment?
Summit Hotel Investment Advice | INN |
- Examine Summit Hotel's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Summit Hotel's leadership team and their track record. Good management can help Summit Hotel navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Hotel & Resort REITs space and any emerging trends that could impact Summit Hotel's business and its evolving consumer preferences.
- Compare Summit Hotel's performance and market position to its competitors. Analyze how Summit Hotel is positioned in terms of product offerings, innovation, and market share.
- Check if Summit Hotel pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Summit Hotel's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Summit Hotel Properties stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Summit Hotel Properties is a good investment.
Sell | Buy |
Hold
Market Performance | Very Weak | Details | |
Volatility | Somewhat reliable | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Below Average | Details | |
Economic Sensitivity | Responds to the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Possible Manipulator | Details |
Examine Summit Hotel Stock
Researching Summit Hotel's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 94.0% of the company shares are owned by institutional investors. The company has price-to-book (P/B) ratio of 0.78. Some equities with similar Price to Book (P/B) outperform the market in the long run. Summit Hotel Properties last dividend was issued on the 15th of November 2024.
To determine if Summit Hotel is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Summit Hotel's research are outlined below:
| Summit Hotel generated a negative expected return over the last 90 days | |
| The company reported the last year's revenue of 736.13 M. Reported Net Loss for the year was (9.49 M) with profit before taxes, overhead, and interest of 305.82 M. | |
| Over 94.0% of the company shares are owned by institutional investors | |
| Latest headline from prnewswire.com: THE OMNI GROVE PARK INN SPA ANNOUNCES FINAL PHASE OF REOPENING FOLLOWING HURRICANE HELENE |
Summit Hotel uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Summit Hotel Properties. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Summit Hotel's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 28th of February 2024 Upcoming Quarterly Report | View | |
| 1st of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 28th of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact Summit Hotel's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Summit Hotel's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2022-11-02 | 2022-09-30 | -0.01 | -0.0049 | 0.0051 | 51 | ||
2019-11-05 | 2019-09-30 | 0.08 | 0.07 | -0.01 | 12 | ||
2017-02-23 | 2016-12-31 | 0.03 | 0.04 | 0.01 | 33 | ||
2014-11-03 | 2014-09-30 | 0.06 | 0.05 | -0.01 | 16 | ||
2024-11-04 | 2024-09-30 | -0.06 | -0.04 | 0.02 | 33 | ||
2023-05-03 | 2023-03-31 | -0.07 | -0.05 | 0.02 | 28 | ||
2019-02-26 | 2018-12-31 | 0.01 | 0.03 | 0.02 | 200 | ||
2018-02-21 | 2017-12-31 | 0.04 | 0.02 | -0.02 | 50 |
Know Summit Hotel's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Summit Hotel is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Summit Hotel Properties backward and forwards among themselves. Summit Hotel's institutional investor refers to the entity that pools money to purchase Summit Hotel's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Deutsche Bank Ag | 2024-06-30 | 1.8 M | Dimensional Fund Advisors, Inc. | 2024-09-30 | 1.6 M | Charles Schwab Investment Management Inc | 2024-09-30 | 1.6 M | Northern Trust Corp | 2024-09-30 | 1.2 M | Grace & White Inc | 2024-09-30 | 1.1 M | Jpmorgan Chase & Co | 2024-06-30 | 1.1 M | Systematic Financial Management Lp | 2024-09-30 | 1 M | Royal Bank Of Canada | 2024-06-30 | 977.4 K | Globeflex Capital, L.p. | 2024-09-30 | 919.7 K | Blackrock Inc | 2024-06-30 | 20.7 M | Vanguard Group Inc | 2024-09-30 | 15.5 M |
Summit Hotel's market capitalization trends
The company currently falls under 'Small-Cap' category with a total capitalization of 709.05 M.Market Cap |
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Summit Hotel's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Capital Employed | 0.02 | 0.03 | |
| Return On Equity | (0.01) | (0.01) |
Determining Summit Hotel's profitability involves analyzing its financial statements and using various financial metrics to determine if Summit Hotel is a good buy. For example, gross profit margin measures Summit Hotel's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Summit Hotel's profitability and make more informed investment decisions.
Evaluate Summit Hotel's management efficiency
Summit Hotel Properties has Return on Asset of 0.018 % which means that on every $100 spent on assets, it made $0.018 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of 0.0118 %, implying that it generated $0.0118 on every 100 dollars invested. Summit Hotel's management efficiency ratios could be used to measure how well Summit Hotel manages its routine affairs as well as how well it operates its assets and liabilities. As of the 28th of November 2024, Return On Capital Employed is likely to grow to 0.03, though Return On Tangible Assets are likely to grow to (0). At this time, Summit Hotel's Fixed Asset Turnover is very stable compared to the past year. As of the 28th of November 2024, Asset Turnover is likely to grow to 0.26, while Total Assets are likely to drop about 1.7 B.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 13.23 | 8.00 | |
| Tangible Book Value Per Share | 12.85 | 7.92 | |
| Enterprise Value Over EBITDA | 9.97 | 9.47 | |
| Price Book Value Ratio | 0.78 | 0.74 | |
| Enterprise Value Multiple | 9.97 | 9.47 | |
| Price Fair Value | 0.78 | 0.74 |
Leadership effectiveness at Summit Hotel Properties is a strong indicator of its financial stability. We analyze various metrics to provide insights into the stock's investment viability.
Dividend Yield 0.0489 | Forward Dividend Yield 0.0489 | Forward Dividend Rate 0.32 | Beta 2.054 |
Basic technical analysis of Summit Stock
As of the 28th of November, Summit Hotel has the Variance of 3.93, coefficient of variation of (7,474), and insignificant Risk Adjusted Performance. Summit Hotel technical analysis provides you with a way to harness past market data to determine a pattern that measures the direction of the company's future prices.Summit Hotel's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Summit Hotel insiders, such as employees or executives, is commonly permitted as long as it does not rely on Summit Hotel's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Summit Hotel insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Summit Hotel's Outstanding Corporate Bonds
Summit Hotel issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Summit Hotel Properties uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Summit bonds can be classified according to their maturity, which is the date when Summit Hotel Properties has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| US866082AA86 Corp BondUS866082AA86 | View | |
| MPLX LP 52 Corp BondUS55336VAL45 | View |
Understand Summit Hotel's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Summit Hotel's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | (0) | |||
| Market Risk Adjusted Performance | (0.01) | |||
| Mean Deviation | 1.43 | |||
| Coefficient Of Variation | (7,474) | |||
| Standard Deviation | 1.98 | |||
| Variance | 3.93 | |||
| Information Ratio | (0.08) | |||
| Jensen Alpha | (0.23) | |||
| Total Risk Alpha | (0.35) | |||
| Treynor Ratio | (0.02) | |||
| Maximum Drawdown | 10.45 | |||
| Value At Risk | (2.41) | |||
| Potential Upside | 3.37 | |||
| Skewness | 1.12 | |||
| Kurtosis | 2.97 |
| Risk Adjusted Performance | (0) | |||
| Market Risk Adjusted Performance | (0.01) | |||
| Mean Deviation | 1.43 | |||
| Coefficient Of Variation | (7,474) | |||
| Standard Deviation | 1.98 | |||
| Variance | 3.93 | |||
| Information Ratio | (0.08) | |||
| Jensen Alpha | (0.23) | |||
| Total Risk Alpha | (0.35) | |||
| Treynor Ratio | (0.02) | |||
| Maximum Drawdown | 10.45 | |||
| Value At Risk | (2.41) | |||
| Potential Upside | 3.37 | |||
| Skewness | 1.12 | |||
| Kurtosis | 2.97 |
Consider Summit Hotel's intraday indicators
Summit Hotel intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Summit Hotel stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Summit Hotel Corporate Filings
13A | 14th of November 2024 The form used by investors holding more than 5% of a company's stock, to report their beneficial ownership pursuant to Rule 13d-1 or Rule 13d-2 under the Securities Exchange Act of 1934 | ViewVerify |
10Q | 4th of November 2024 Quarterly performance report mandated by Securities and Exchange Commission (SEC), to be filed by publicly traded corporations | ViewVerify |
8K | 29th of July 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
| 29th of May 2024 Other Reports | ViewVerify |
Summit Stock media impact
Far too much social signal, news, headlines, and media speculation about Summit Hotel that are available to investors today. That information is available publicly through Summit media outlets and privately through word of mouth or via Summit internal channels. However, regardless of the origin, that massive amount of Summit data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Summit Hotel news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Summit Hotel relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Summit Hotel's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Summit Hotel alpha.
Summit Hotel Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Summit Hotel can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Summit Hotel Corporate Directors
| Hope Taitz | Independent Director | Profile | |
| Kenneth Kay | Independent Director | Profile | |
| Thomas Storey | Independent Director | Profile | |
| Bjorn Hanson | Independent Director | Profile |
Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in Summit Hotel Properties. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors. You can also try the Equity Valuation module to check real value of public entities based on technical and fundamental data.
Is Hotel & Resort REITs space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Summit Hotel. If investors know Summit will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Summit Hotel listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.79) | Dividend Share 0.28 | Earnings Share 0.05 | Revenue Per Share 6.957 | Quarterly Revenue Growth (0.03) |
The market value of Summit Hotel Properties is measured differently than its book value, which is the value of Summit that is recorded on the company's balance sheet. Investors also form their own opinion of Summit Hotel's value that differs from its market value or its book value, called intrinsic value, which is Summit Hotel's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Summit Hotel's market value can be influenced by many factors that don't directly affect Summit Hotel's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Summit Hotel's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Summit Hotel is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Summit Hotel's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.