According to Zacks, “Shares of Extended Stay America have underperformed the industry in the past year. Although the company’s earnings missed the Zacks Consensus Estimate in the first quarter, it surpassed the consensus mark in 11 out of the trailing 15 quarters. Extended Stay America’s efforts to drive revenue per available room (ReVPAR) by providing suitable services to value-conscious business travelers are encouraging. Additionally, it is refocusing on core customers instead of fleeting customers. Additionally, its initiatives toward controlling costs and decreasing capital requirement for fresh hotel builds are commendable. Extended Stay America is banking on increasing unit growth as well. However, the company’s lack of exposure in international markets might limit revenue growth potential. Also, intense competition from larger hotel chains as well as alternative hospitality providers is a concern.”
Several other research firms have also issued reports on STAY. Goldman Sachs Group raised Extended Stay America from a neutral rating to a buy rating and set a $21.00 price objective for the company in a research note on Monday, March 4th. Deutsche Bank reaffirmed a buy rating and issued a $22.00 price objective on shares of Extended Stay America in a research note on Sunday, May 5th. Two investment analysts have rated the stock with a hold rating and six have issued a buy rating to the company. Extended Stay America presently has a consensus rating of Buy and an average target price of $21.69.
NYSE:STAY opened at $17.62 on Wednesday. Extended Stay America has a 1 year low of $14.77 and a 1 year high of $22.58.
Extended Stay America (NYSE:STAY) last posted its quarterly earnings data on Wednesday, May 1st. The company reported $0.16 earnings per share (EPS) for the quarter, meeting the consensus estimate of $0.16. The company had revenue of $277.67 million during the quarter, compared to the consensus estimate of $273.58 million. Extended Stay America’s revenue for the quarter was down 6.7% on a year-over-year basis. During the same period in the previous year, the business earned $0.19 earnings per share.
The business also recently disclosed a quarterly dividend, which will be paid on Thursday, May 30th. Stockholders of record on Thursday, May 16th will be paid a $0.23 dividend. This represents a $0.92 annualized dividend and a dividend yield of 5.22%. This is a positive change from Extended Stay America’s previous quarterly dividend of $0.22. The ex-dividend date is Wednesday, May 15th.
Several large investors have recently bought and sold shares of STAY. Jane Street Group LLC bought a new stake in shares of Extended Stay America during the 1st quarter worth approximately $312,000. Morgan Stanley lifted its stake in shares of Extended Stay America by 3,961.1% during the 1st quarter. Morgan Stanley now owns 1,217,110 shares of the company’s stock worth $21,846,000 after acquiring an additional 1,187,140 shares during the last quarter. M&T Bank Corp lifted its stake in shares of Extended Stay America by 2.3% during the 1st quarter. M&T Bank Corp now owns 1,271,947 shares of the company’s stock worth $22,832,000 after acquiring an additional 28,527 shares during the last quarter. Macquarie Group Ltd. lifted its stake in shares of Extended Stay America by 1.3% during the 1st quarter. Macquarie Group Ltd. now owns 170,386 shares of the company’s stock worth $3,058,000 after acquiring an additional 2,199 shares during the last quarter. Finally, Goldman Sachs Group Inc. lifted its stake in shares of Extended Stay America by 71.4% during the 1st quarter. Goldman Sachs Group Inc. now owns 1,547,071 shares of the company’s stock worth $27,770,000 after acquiring an additional 644,441 shares during the last quarter. 96.67% of the stock is owned by institutional investors and hedge funds.
About Extended Stay America
Extended Stay America, Inc, together with its subsidiaries, owns, operates, and manages hotels in the United States. As of February 27, 2018, it had 599 hotels and approximately 66,000 rooms, as well as managed 26 hotels under the Extended Stay America brand. It serves customers in the mid-priced extended stay segment.
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