Extended Stay America (STAY) Raises Dividend to $0.22 Per Share
Extended Stay America (NYSE:STAY) announced a quarterly dividend on Friday, April 27th, Wall Street Journal reports. Shareholders of record on Friday, May 11th will be paid a dividend of 0.22 per share on Friday, May 25th. This represents a $0.88 annualized dividend and a yield of 4.51%. The ex-dividend date is Thursday, May 10th. This is an increase from Extended Stay America’s previous quarterly dividend of $0.21.
Extended Stay America has raised its dividend payment by an average of 15.7% per year over the last three years and has raised its dividend every year for the last 3 years. Extended Stay America has a dividend payout ratio of 85.7% meaning its dividend is currently covered by earnings, but may not be in the future if the company’s earnings fall. Equities research analysts expect Extended Stay America to earn $1.19 per share next year, which means the company should continue to be able to cover its $0.84 annual dividend with an expected future payout ratio of 70.6%.
Extended Stay America stock opened at $19.51 on Friday. The stock has a market cap of $3,808.82, a PE ratio of 19.51, a PEG ratio of 2.00 and a beta of 0.93. Extended Stay America has a fifty-two week low of $16.27 and a fifty-two week high of $21.28. The company has a current ratio of 0.12, a quick ratio of 0.12 and a debt-to-equity ratio of 0.94.
STAY has been the topic of several recent analyst reports. Stifel Nicolaus restated a “buy” rating and set a $20.50 price objective on shares of Extended Stay America in a research note on Tuesday, January 9th. Zacks Investment Research upgraded shares of Extended Stay America from a “hold” rating to a “buy” rating and set a $22.00 price objective on the stock in a research note on Wednesday, February 21st. Barclays restated an “overweight” rating and set a $22.00 price objective (up from $21.00) on shares of Extended Stay America in a research note on Wednesday, February 28th. ValuEngine upgraded shares of Extended Stay America from a “hold” rating to a “buy” rating in a research note on Monday, April 2nd. Finally, Morgan Stanley boosted their price objective on shares of Extended Stay America from $19.00 to $20.00 and gave the stock an “equal weight” rating in a research note on Monday, April 9th. One research analyst has rated the stock with a sell rating, two have issued a hold rating and eight have given a buy rating to the stock. The company currently has an average rating of “Buy” and a consensus target price of $21.39.
Extended Stay America declared that its board has authorized a stock repurchase program on Tuesday, February 27th that permits the company to buyback $100.00 million in outstanding shares. This buyback authorization permits the company to purchase shares of its stock through open market purchases. Stock buyback programs are often a sign that the company’s board of directors believes its shares are undervalued.
In related news, insider Kevin A. Henry sold 10,000 shares of the company’s stock in a transaction dated Thursday, March 8th. The shares were sold at an average price of $19.23, for a total value of $192,300.00. Following the transaction, the insider now owns 117,196 shares in the company, valued at approximately $2,253,679.08. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. 0.57% of the stock is currently owned by corporate insiders.
An institutional investor recently raised its position in Extended Stay America stock. The Manufacturers Life Insurance Company boosted its stake in Extended Stay America (NYSE:STAY) by 6.3% during the second quarter, according to the company in its most recent filing with the SEC. The fund owned 6,181 shares of the company’s stock after buying an additional 367 shares during the period. The Manufacturers Life Insurance Company’s holdings in Extended Stay America were worth $120,000 as of its most recent filing with the SEC.
Extended Stay America Company Profile
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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