Sunstone Hotel Investors, Inc. (NYSE:SHO) Receives Consensus Recommendation of "Hold" from Analysts

Key Points

• Analysts collectively rate Sunstone Hotel Investors “Hold.” Of eight covering brokerages, five issued hold ratings, while the average 12-month price target is $10.67 versus the reported share price of $10.97.
• Sunstone reported quarterly EPS of $0.14, exceeding the $0.08 consensus estimate, while revenue of $277.11 million also topped expectations. Management guided to fiscal 2026 EPS of $0.93–$0.98.
• The REIT declared a quarterly dividend of $0.09, or $0.36 annualized, representing a 3.3% yield; however, its dividend payout ratio is elevated at 163.64%. Institutional investors own 99.37% of the stock.

Shares of Sunstone Hotel Investors, Inc. (NYSE:SHO - Get Free Report) have been given a consensus recommendation of "Hold" by the eight brokerages that are currently covering the stock, MarketBeat.com reports. One analyst has rated the stock with a sell recommendation, five have issued a hold recommendation, one has issued a buy recommendation and one has assigned a strong buy recommendation to the company. The average 12 month price objective among brokers that have issued ratings on the stock in the last year is $10.6667.

SHO has been the topic of a number of recent research reports. Wall Street Zen lowered Sunstone Hotel Investors from a "buy" rating to a "hold" rating in a research note on Saturday, August 8th. JPMorgan Chase & Co. upped their target price 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. Wells Fargo & Company raised Sunstone Hotel Investors to a "strong-buy" rating in a report on Thursday, July 23rd. Zacks Research cut Sunstone Hotel Investors from a "strong-buy" rating to a "hold" rating in a research report on Thursday, July 23rd. Finally, Citigroup boosted their price target on Sunstone Hotel Investors from $9.50 to $10.00 and gave the company a "neutral" rating in a research note on Wednesday, May 6th.

Insider Activity at Sunstone Hotel Investors

In other news, insider Robert C. Springer sold 89,631 shares of the business's stock in a transaction that occurred on Wednesday, June 24th. The shares were sold at an average price of $11.62, for a total value of $1,041,512.22. Following the completion of the transaction, the insider directly owned 573,743 shares in the company, valued at approximately $6,666,893.66. The trade was a 13.51% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders own 1.40% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the company. Royal Bank of Canada lifted its stake in Sunstone Hotel Investors by 13.9% during the first quarter. Royal Bank of Canada now owns 69,862 shares of the real estate investment trust's stock worth $658,000 after purchasing an additional 8,504 shares during the last quarter. AQR Capital Management LLC increased its stake in shares of Sunstone Hotel Investors by 1.6% in the 1st quarter. AQR Capital Management LLC now owns 83,864 shares of the real estate investment trust's stock valued at $789,000 after purchasing an additional 1,307 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its stake in shares of Sunstone Hotel Investors by 3.1% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 119,358 shares of the real estate investment trust's stock valued at $1,123,000 after purchasing an additional 3,607 shares during the last quarter. Goldman Sachs Group Inc. increased its stake in shares of Sunstone Hotel Investors by 132.6% in the 1st quarter. Goldman Sachs Group Inc. now owns 2,787,519 shares of the real estate investment trust's stock valued at $26,231,000 after purchasing an additional 1,589,258 shares during the last quarter. Finally, United Services Automobile Association acquired a new position in shares of Sunstone Hotel Investors during the 1st quarter worth $120,000. 99.37% of the stock is owned by institutional investors.

Sunstone Hotel Investors Stock Performance

NYSE SHO opened at $10.97 on Wednesday. The firm has a 50-day moving average price of $11.38 and a two-hundred day moving average price of $10.48. Sunstone Hotel Investors has a 12-month low of $8.69 and a 12-month high of $12.07. The company has a market capitalization of $2.04 billion, a P/E ratio of 49.87, a P/E/G ratio of 2.64 and a beta of 0.97. The company has a quick ratio of 3.84, a current ratio of 3.84 and a debt-to-equity ratio of 0.59.

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

Sunstone Hotel Investors Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, October 15th. Shareholders of record on Wednesday, September 30th will be issued a $0.09 dividend. This represents a $0.36 annualized dividend and a yield of 3.3%. The ex-dividend date of this dividend is Wednesday, September 30th. Sunstone Hotel Investors's dividend payout ratio (DPR) is currently 163.64%.

About Sunstone Hotel Investors

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.

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