APLE

Apple Hospitality REIT($APLE) Insiders Stage Buying Spree Amid Stock Plunge - Six Executives and Directors Acquire $184,000 in Shares Over Five Days

05/12/2025 20:25

A noteworthy pattern has emerged at Apple Hospitality REIT ($APLE) amid its recent stock price struggles. Over the past week, the company has witnessed a significant 'cluster buying' phenomenon as insiders rushed to purchase shares. Between May 6 and May 9, six company insiders—including one officer, three directors, and two SVPs—collectively acquired approximately $184,000 worth of stock in just four days. The largest transaction came from Officer Glade Knight, who purchased 10,000 shares for $114,300, followed by Director Howard Woolley acquiring 2,000 shares ($22,690), SVP Elizabeth Perkins buying 2,100 shares ($24,612), Director Hugh Redd purchasing 1,000 shares ($11,370), and SVP Rachel Labrecque adding 1,000 shares ($11,450). This buying spree has garnered particular attention as it coincides with a substantial decline in $APLE's stock price. Chart analysis reveals that $APLE traded around $15 at the beginning of the year before starting a steep decline in mid-March. The stock particularly plummeted in early April, dropping more than 10% in just two days from $12.8 to $11.4, and eventually hitting a 52-week low of $10.5 on April 8. The backdrop to this price decline is broader challenges facing the hotel REIT sector. On April 7, $APLE announced reduced room revenue due to declining travel demand, news that further pressured the stock. The company reported that Q1 RevPAR (Revenue Per Available Room) decreased by less than 1% year-over-year, citing weather-related disruptions and reduced government travel as contributing factors. On May 2, $APLE officially released its Q1 earnings. Adjusted earnings per share came in at 13 cents, meeting market expectations but declining from 22 cents in the same period last year. Quarterly revenue decreased by 0.5% to $327.7 million, slightly below analyst forecasts of $329.69 million. Apple Hospitality REIT is a mid-cap REIT with a market capitalization of approximately $2.9 billion, specializing in hotel and resort properties. The company primarily operates a portfolio of upscale and mid-scale hotels, generating revenue through franchise agreements with major hotel brands. Analysts have expressed mixed opinions regarding $APLE's investment outlook. While Wells Fargo lowered its price target to $12 on April 7, most analysts maintain a median price target of $15, suggesting a potential upside of approximately 28% from the current price of $11.74. In its February earnings report, $APLE exceeded analyst expectations with an adjusted EPS of 12 cents for Q4, surpassing the predicted 10 cents. Revenue also outperformed at $333.04 million compared to the expected $329.88 million. Despite this positive performance, the stock continued its downward trajectory. It's worth noting that in September 2024, Wells Fargo reduced price targets across U.S. lodging REITs, maintaining a negative market outlook. At that time, the S&P 500 Hotel & Resort REITs sub-index had declined 11.7% year-to-date. From a broader perspective, the U.S. stock market in early 2025 has faced significant challenges, primarily due to concerns about President Trump's tariffs and their potential economic consequences. As of May 9, the S&P 500 index had declined by 3.7% for the year, adding further pressure to cyclical sectors like $APLE. The concentrated insider buying at $APLE during this price decline can be interpreted as a strong signal that insiders believe in the company's long-term value and recovery potential. This buying activity is particularly significant as it involves multiple high-ranking executives and directors simultaneously, rather than being limited to a single insider. Looking ahead, $APLE is likely to be heavily influenced by summer peak season travel demand and recovery potential, as well as changes in Federal Reserve interest rate policies. The confident buying by insiders sends a compelling message to investors that the stock may warrant consideration at current price levels.

You can receive notifications when news is published.