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 firms, five issued hold ratings, with one sell, one buy, and one strong buy; the average 12-month price target is $11.00.
• SHO shares opened at $11.19, near their 50-day average of $11.24, with a 12-month trading range of $8.69 to $12.07. The company recently exceeded quarterly earnings and revenue expectations, reporting $0.14 EPS and $277.11 million in revenue.
• Sunstone declared a quarterly dividend of $0.09 per share, equivalent to $0.36 annually and a 3.2% yield. Institutional investors own 99.37% of the company’s outstanding stock.

Sunstone Hotel Investors, Inc. (NYSE:SHO - Get Free Report) has been assigned a consensus recommendation of "Hold" from the eight brokerages that are covering the firm, Marketbeat Ratings reports. One analyst has rated the stock with a sell recommendation, five have given a hold recommendation, one has issued a buy recommendation and one has assigned a strong buy recommendation to the company. The average 1-year price target among brokers that have issued ratings on the stock in the last year is $11.00.

Several analysts have issued reports on the company. Wall Street Zen lowered Sunstone Hotel Investors from a "buy" rating to a "hold" rating in a research note on Saturday, August 8th. Weiss Ratings upgraded Sunstone Hotel Investors from a "hold (c)" rating to a "buy (b-)" rating in a research note on Tuesday, August 11th. Truist Financial lifted their price objective on Sunstone Hotel Investors from $11.00 to $13.00 and gave the stock a "hold" rating in a report on Thursday, September 10th. Wells Fargo & Company upgraded Sunstone Hotel Investors to a "strong-buy" rating in a research note on Thursday, July 23rd. Finally, JPMorgan Chase & Co. upped their price objective on shares of Sunstone Hotel Investors from $9.00 to $10.00 and gave the company an "underweight" rating in a report on Tuesday, July 21st.

Sunstone Hotel Investors Trading Up 0.4%

Shares of SHO stock opened at $11.19 on Friday. The company has a 50 day moving average of $11.24 and a 200-day moving average of $10.68. 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 has a 12-month low of $8.69 and a 12-month high of $12.07. The firm has a market cap of $2.08 billion, a P/E ratio of 50.84, a PEG ratio of 2.65 and a beta of 0.97.

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

Sunstone Hotel Investors Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, October 15th. Stockholders of record on Wednesday, September 30th will be given a $0.09 dividend. The ex-dividend date of this dividend is Wednesday, September 30th. This represents a $0.36 annualized dividend and a dividend yield of 3.2%. Sunstone Hotel Investors's payout ratio is 163.64%.

Institutional Trading of Sunstone Hotel Investors

A number of institutional investors have recently modified their holdings of SHO. Royal Bank of Canada lifted its position in shares of Sunstone Hotel Investors by 1.2% during the first quarter. Royal Bank of Canada now owns 103,294 shares of the real estate investment trust's stock worth $931,000 after acquiring an additional 1,204 shares in the last quarter. Nomura Asset Management Co. Ltd. grew its position in shares of Sunstone Hotel Investors by 0.8% in the fourth quarter. Nomura Asset Management Co. Ltd. now owns 284,600 shares of the real estate investment trust's stock valued at $2,544,000 after purchasing an additional 2,300 shares in the last quarter. North Star Investment Management Corp. bought a new stake in shares of Sunstone Hotel Investors during the 1st quarter valued at $27,000. Janney Montgomery Scott LLC raised its stake in shares of Sunstone Hotel Investors by 17.2% during the 1st quarter. Janney Montgomery Scott LLC now owns 29,497 shares of the real estate investment trust's stock valued at $266,000 after purchasing an additional 4,325 shares during the period. Finally, Resona Asset Management Co. Ltd. raised its stake in shares of Sunstone Hotel Investors by 6.6% during the 1st quarter. Resona Asset Management Co. Ltd. now owns 84,337 shares of the real estate investment trust's stock valued at $758,000 after purchasing an additional 5,238 shares during the period. 99.37% of the stock is currently owned by hedge funds and other institutional investors.

About Sunstone Hotel Investors

Sunstone Hotel Investors, Inc is a real estate investment trust that owns and invests in luxury and upper-upscale hotels in the United States. The company focuses on acquiring, renovating, repositioning and managing a portfolio of full-service lodging properties located primarily in high-demand, coastal and urban gateway markets.

Sunstone's hotels serve business and leisure travelers and typically offer accommodations, restaurants and bars, meeting and event facilities, and other hospitality amenities.

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