Sunstone Hotel Investors, Inc. (NYSE:SHO) Receives Average Rating of “Hold” from Brokerages

Shares of Sunstone Hotel Investors, Inc. (NYSE:SHO) have been assigned a consensus rating of “Hold” from the nine brokerages that are covering the firm, Marketbeat.com reports. One analyst has rated the stock with a sell recommendation, five have assigned a hold recommendation, two have given a buy recommendation and one has assigned a strong buy recommendation to the company. The average 12-month price objective among brokers that have updated their coverage on the stock in the last year is $10.00.

Several analysts have recently weighed in on the stock. Zacks Research upgraded shares of Sunstone Hotel Investors from a “hold” rating to a “strong-buy” rating in a research report on Monday, May 18th. Citigroup increased their price target on shares of Sunstone Hotel Investors from $9.50 to $10.00 and gave the stock a “neutral” rating in a research report on Wednesday, May 6th. LADENBURG THALM/SH SH assumed coverage on shares of Sunstone Hotel Investors in a research note on Thursday, March 26th. They set a “hold” rating and a $10.00 price target for the company. Wells Fargo & Company decreased their price objective on Sunstone Hotel Investors from $11.00 to $10.00 and set an “overweight” rating on the stock in a report on Tuesday, March 24th. Finally, Truist Financial upped their price objective on Sunstone Hotel Investors from $10.00 to $11.00 and gave the company a “hold” rating in a research note on Thursday, March 26th.

Sunstone Hotel Investors Stock Performance

Shares of NYSE SHO opened at $10.82 on Monday. The business has a fifty day simple moving average of $9.78 and a 200 day simple moving average of $9.40. The company has a current ratio of 3.42, a quick ratio of 3.42 and a debt-to-equity ratio of 0.58. The firm has a market capitalization of $2.01 billion, a price-to-earnings ratio of 98.33, a PEG ratio of 2.53 and a beta of 0.98. Sunstone Hotel Investors has a one year low of $8.43 and a one year high of $11.05.

Sunstone Hotel Investors (NYSE:SHO) last posted its quarterly earnings results on Tuesday, May 5th. The real estate investment trust reported $0.27 earnings per share for the quarter, topping analysts’ consensus estimates of $0.22 by $0.05. The firm had revenue of $259.71 million for the quarter, compared to the consensus estimate of $244.30 million. Sunstone Hotel Investors had a net margin of 3.84% and a return on equity of 2.27%. The business’s revenue was up 10.9% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.21 earnings per share. Sunstone Hotel Investors has set its FY 2026 guidance at 0.880-0.960 EPS. Sell-side analysts expect that Sunstone Hotel Investors will post 0.91 EPS for the current year.

Sunstone Hotel Investors Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, July 15th. Shareholders of record on Tuesday, June 30th will be given a $0.09 dividend. This represents a $0.36 dividend on an annualized basis and a yield of 3.3%. The ex-dividend date is Tuesday, June 30th. Sunstone Hotel Investors’s dividend payout ratio is 327.27%.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in SHO. State Street Corp grew its holdings in shares of Sunstone Hotel Investors by 4.9% in the 2nd quarter. State Street Corp now owns 12,179,383 shares of the real estate investment trust’s stock worth $106,784,000 after purchasing an additional 571,619 shares during the last quarter. Bank of America Corp DE lifted its holdings in Sunstone Hotel Investors by 21.1% during the 1st quarter. Bank of America Corp DE now owns 10,099,538 shares of the real estate investment trust’s stock valued at $90,997,000 after purchasing an additional 1,757,965 shares during the last quarter. Alyeska Investment Group L.P. boosted its position in Sunstone Hotel Investors by 86.8% in the fourth quarter. Alyeska Investment Group L.P. now owns 5,369,789 shares of the real estate investment trust’s stock valued at $48,006,000 after buying an additional 2,495,914 shares in the last quarter. Balyasny Asset Management L.P. acquired a new position in Sunstone Hotel Investors in the second quarter valued at about $41,332,000. Finally, Woodline Partners LP bought a new stake in Sunstone Hotel Investors during the third quarter worth about $44,295,000. 99.37% of the stock is owned by institutional investors.

Sunstone Hotel Investors Company Profile

Sunstone Hotel Investors, Inc (NYSE:SHO) is a publicly traded real estate investment trust (REIT) focused on acquiring, owning and asset?managing upper?upscale extended?stay and premium?branded hotel properties in the United States. The company’s business model centers on generating stable, long?term cash flows through franchise agreements and third?party management contracts with established hotel operators.

As of the most recent reporting period, Sunstone’s portfolio includes approximately 97 hotels and nearly 25,000 guest rooms across 19 states, with concentrations in major metropolitan and select high?growth secondary markets.