Sunstone Hotel Investors (NYSE:SHO) Sets New 12-Month High – Still a Buy?

Sunstone Hotel Investors, Inc. (NYSE:SHO)’s stock price hit a new 52-week high on Friday. The stock traded as high as $12.21 and last traded at $12.2650, with a volume of 194,432 shares trading hands. The stock had previously closed at $11.87.

Analyst Upgrades and Downgrades

SHO has been the subject of a number of research analyst reports. JPMorgan Chase & Co. raised their price target on Sunstone Hotel Investors from $9.00 to $10.00 and gave the company an “underweight” rating in a research report on Tuesday, July 21st. Weiss Ratings upgraded Sunstone Hotel Investors from a “hold (c)” rating to a “buy (b-)” rating in a research note on Tuesday, August 11th. Wall Street Zen downgraded Sunstone Hotel Investors from a “buy” rating to a “hold” rating in a report on Saturday, August 8th. Wells Fargo & Company upgraded Sunstone Hotel Investors to a “strong-buy” rating in a research note on Thursday, July 23rd. Finally, Truist Financial upped their target price on shares of Sunstone Hotel Investors from $11.00 to $13.00 and gave the company a “hold” rating in a research note on Thursday, September 10th. One analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating, five have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the company has a consensus rating of “Hold” and a consensus price target of $11.00.

Sunstone Hotel Investors Stock Performance

The company has a debt-to-equity ratio of 0.59, a quick ratio of 3.84 and a current ratio of 3.84. The stock has a market capitalization of $2.28 billion, a PE ratio of 55.63, a P/E/G ratio of 2.72 and a beta of 1.00. The firm has a 50 day moving average of $11.15 and a 200-day moving average of $10.91.

Sunstone Hotel Investors (NYSE:SHO) last issued its earnings results on Thursday, August 6th. The real estate investment trust reported $0.14 earnings per share for the quarter, topping the consensus estimate of $0.08 by $0.06. Sunstone Hotel Investors had a return on equity of 3.21% and a net margin of 5.30%. The company had revenue of $277.11 million for the quarter, compared to analyst estimates of $266.67 million. Sunstone Hotel Investors has set its FY 2026 guidance at 0.930-0.980 EPS. Research analysts forecast that Sunstone Hotel Investors, Inc. will post 0.97 earnings per share for the current year.

Sunstone Hotel Investors Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Thursday, October 15th. Investors of record on Wednesday, September 30th were given a dividend of $0.09 per share. The ex-dividend date of this dividend was Wednesday, September 30th. This represents a $0.36 dividend on an annualized basis and a yield of 2.9%. Sunstone Hotel Investors’s payout ratio is 163.64%.

Institutional Trading of Sunstone Hotel Investors

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. BlackRock Inc. acquired a new stake in shares of Sunstone Hotel Investors during the 2nd quarter worth about $402,089,000. Bank of America Corp DE grew 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 worth $90,997,000 after acquiring an additional 1,757,965 shares during the period. Legal & General Group Plc bought a new stake in Sunstone Hotel Investors in the second quarter valued at about $33,113,000. Dimensional Fund Advisors LP raised its position in shares of Sunstone Hotel Investors by 2.1% in the 1st quarter. Dimensional Fund Advisors LP now owns 2,591,239 shares of the real estate investment trust’s stock valued at $23,348,000 after acquiring an additional 54,242 shares during the period. Finally, SG Americas Securities LLC raised its position in shares of Sunstone Hotel Investors by 1,899.5% during the first quarter. SG Americas Securities LLC now owns 2,244,427 shares of the real estate investment trust’s stock worth $20,222,000 after purchasing an additional 2,132,180 shares during the period. Institutional investors own 99.37% of the company’s stock.

About Sunstone Hotel Investors

Sunstone Hotel Investors, Inc is a real estate investment trust (REIT) that owns, acquires, renovates and manages hotels in the United States. The company focuses primarily on upscale and upper-upscale lodging properties located in major urban, coastal and resort destinations.

Its portfolio includes independent and branded hotels serving business and leisure travelers. Properties may operate under well-known hospitality brands or as independent hotels, and typically offer guest rooms, meeting and event facilities, restaurants, bars, spas and other hospitality services.