Sunstone Hotel Investors, Inc. (NYSE:SHO) to Issue $0.09 Quarterly Dividend

Sunstone Hotel Investors, Inc. (NYSE:SHO) declared a quarterly dividend on Monday, May 4th. Stockholders of record on Tuesday, June 30th will be paid a dividend of 0.09 per share by the real estate investment trust on Wednesday, July 15th. This represents a c) annualized dividend and a dividend yield of 3.6%. The ex-dividend date of this dividend is Tuesday, June 30th.

Sunstone Hotel Investors has raised its dividend by an average of 0.5%annually over the last three years and has increased its dividend annually for the last 2 consecutive years. Sunstone Hotel Investors has a payout ratio of 189.5% indicating that the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Research analysts expect Sunstone Hotel Investors to earn $0.94 per share next year, which means the company should continue to be able to cover its $0.36 annual dividend with an expected future payout ratio of 38.3%.

Sunstone Hotel Investors Stock Performance

Shares of SHO traded up $0.31 during mid-day trading on Tuesday, hitting $10.02. 1,383,802 shares of the company’s stock were exchanged, compared to its average volume of 1,877,673. Sunstone Hotel Investors has a 52 week low of $8.14 and a 52 week high of $10.27. The stock’s 50-day simple moving average is $9.34 and its 200-day simple moving average is $9.23. The firm has a market cap of $1.90 billion, a price-to-earnings ratio of 250.59, a price-to-earnings-growth ratio of 2.81 and a beta of 0.96. The company has a quick ratio of 2.94, a current ratio of 2.94 and a debt-to-equity ratio of 0.55.

Sunstone Hotel Investors (NYSE:SHO) last announced its earnings results on Tuesday, May 5th. The real estate investment trust reported $0.27 EPS for the quarter, topping the consensus estimate of $0.22 by $0.05. Sunstone Hotel Investors had a net margin of 2.56% and a return on equity of 1.44%. The company had revenue of $259.71 million for the quarter, compared to analysts’ expectations of $244.30 million. During the same period last year, the firm earned $0.21 earnings per share. The business’s revenue for the quarter was up 10.9% on a year-over-year basis. Sunstone Hotel Investors has set its FY 2026 guidance at 0.880-0.960 EPS. On average, equities research analysts expect that Sunstone Hotel Investors will post 0.89 EPS for the current year.

Analyst Ratings Changes

A number of brokerages recently issued reports on SHO. Truist Financial lifted their price objective on shares of Sunstone Hotel Investors from $10.00 to $11.00 and gave the company a “hold” rating in a research note on Thursday, March 26th. Wells Fargo & Company decreased their price objective on shares of Sunstone Hotel Investors from $11.00 to $10.00 and set an “overweight” rating on the stock in a research note on Tuesday, March 24th. Zacks Research raised shares of Sunstone Hotel Investors from a “strong sell” rating to a “hold” rating in a research note on Friday, April 17th. Wall Street Zen raised shares of Sunstone Hotel Investors from a “sell” rating to a “hold” rating in a research note on Saturday, February 28th. Finally, LADENBURG THALM/SH SH began coverage on shares of Sunstone Hotel Investors in a research note on Thursday, March 26th. They issued a “hold” rating and a $10.00 price objective on the stock. Two investment analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, Sunstone Hotel Investors has an average rating of “Hold” and a consensus price target of $10.00.

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.