Pebblebrook Hotel Trust (NYSE:PEB) Chairman and CEO Jon E. Bortz has recently made significant purchases of the company's common shares, according to the latest filings. The transactions, which took place on June 10 and June 11, 2024, involved Bortz acquiring a total of 45,000 shares at an average price range between $13.58 and $13.60, amounting to over $611,000.
On the first day of transactions, Bortz bought 29,000 shares at a weighted average price of $13.58, with individual prices ranging from $13.48 to $13.72. The following day, an additional 16,000 shares were acquired at an average price of $13.60, with the price per share ranging from $13.55 to $13.62. These purchases increased Bortz's direct ownership in the company to 1,253,284 common shares.
In addition to these transactions, the SEC filing also disclosed that Bortz's wife holds 200,000 shares indirectly, which Bortz disclaims beneficial ownership. The report does not regard him as the beneficial owner of these shares for Section 16 or any other purposes.
Furthermore, the filing mentioned Long-Term Incentive Plan (LTIP) Class B Units held by Bortz, which are convertible into common shares of Pebblebrook Hotel Trust under certain conditions. However, these derivative securities are not part of the recent purchase transactions.
Investors often view insider purchases as a positive sign, reflecting confidence in the company's prospects by its own leadership. The recent acquisitions by Pebblebrook's CEO could be interpreted as a strong vote of confidence in the company's future.
In other recent news, Pebblebrook Hotel Trust reported robust financial results for Q1 2024, with urban markets, particularly in Washington D.C. and San Diego, showing a 4.9% RevPAR growth. This growth was attributed to the newly redeveloped Hilton San Diego Gaslamp Quarter and the Margaritaville Hotel San Diego Gaslamp Quarter. However, the resort portfolio's RevPAR saw a decline due to weather-impacted leisure bookings. Pebblebrook's same-property EBITDA exceeded expectations and the balance sheet remained strong with no significant debt maturities until October 2025. The company also made substantial capital investments with further repositioning planned. Looking ahead, Pebblebrook expects Q2 RevPAR growth between 0.5% and 2.5% and maintains its full-year outlook, albeit with caution due to potential macroeconomic changes. The company may also consider selling urban assets in slower-recovering markets to focus on higher-return opportunities. These are among the recent developments at Pebblebrook Hotel Trust.
InvestingPro Insights
Pebblebrook Hotel Trust's (NYSE:PEB) latest insider buying spree by Chairman and CEO Jon E. Bortz aligns with the company's aggressive share buyback strategy, as noted in InvestingPro Tips. This move is often seen as a bullish signal by investors, suggesting that management believes the stock is undervalued and that the company's future prospects are strong. Additionally, Pebblebrook's commitment to maintaining dividend payments for 15 consecutive years, despite recent price volatility and a non-profitable last twelve months, further emphasizes the company's dedication to shareholder returns.
From a financial standpoint, Pebblebrook's market capitalization stands at $1.7 billion, with a notable Price / Book ratio of 0.62 as of the last twelve months leading up to Q1 2024. This suggests that the company's stock is trading at less than the net value of its assets, which can be attractive to value investors. Moreover, even though the company's revenue slightly declined by 0.78% over the last twelve months, there was a quarterly revenue growth of 2.73% in Q1 2024, indicating some positive momentum.
However, investors should be aware of the company's current P/E Ratio of -14.25 and an adjusted P/E Ratio for the last twelve months as of Q1 2024 at -25.27, reflecting analysts' expectations that the company will not be profitable this year. Despite these challenges, the CEO's recent purchase could be a sign that the leadership is confident in the company's ability to navigate through these headwinds.
For those interested in further analysis and additional InvestingPro Tips, there are 9 tips available for Pebblebrook Hotel Trust, which can be accessed by visiting: https://www.investing.com/pro/PEB. Remember to use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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