Adage Capital Partners GP L.L.C. Decreases Stock Holdings in Sunstone Hotel Investors, Inc. $SHO

Key Points

• Adage Capital Partners GP L.L.C. reduced its holdings in Sunstone Hotel Investors by 25.7%, selling 450,000 shares, which brings their total ownership to approximately 1.3 million shares worth $12.23 million.
• Sunstone Hotel Investors reported a net revenue of $259.77 million for the last quarter, exceeding analysts' expectations of $256.68 million, with an earnings per share of $0.28.
• The company recently declared a $0.09 quarterly dividend, set to be paid on October 15, 2023, which represents an annualized yield of 3.8%.

Adage Capital Partners GP L.L.C. lowered its stake in Sunstone Hotel Investors, Inc. (NYSE:SHO - Free Report) by 25.7% during the first quarter, according to its most recent 13F filing with the SEC. The firm owned 1,300,000 shares of the real estate investment trust's stock after selling 450,000 shares during the quarter. Adage Capital Partners GP L.L.C. owned 0.65% of Sunstone Hotel Investors worth $12,233,000 as of its most recent filing with the SEC.

Other institutional investors have also recently added to or reduced their stakes in the company. Principal Financial Group Inc. lifted its holdings in Sunstone Hotel Investors by 5.2% in the 1st quarter. Principal Financial Group Inc. now owns 8,793,005 shares of the real estate investment trust's stock valued at $82,742,000 after purchasing an additional 437,433 shares in the last quarter. Bank of America Corp DE lifted its stake in shares of Sunstone Hotel Investors by 23.0% in the fourth quarter. Bank of America Corp DE now owns 6,567,535 shares of the real estate investment trust's stock worth $77,760,000 after buying an additional 1,229,769 shares in the last quarter. Cbre Investment Management Listed Real Assets LLC boosted its position in Sunstone Hotel Investors by 16.8% during the first quarter. Cbre Investment Management Listed Real Assets LLC now owns 5,474,886 shares of the real estate investment trust's stock worth $51,519,000 after acquiring an additional 788,397 shares during the last quarter. Massachusetts Financial Services Co. MA purchased a new stake in Sunstone Hotel Investors during the 1st quarter valued at about $42,838,000. Finally, Westwood Holdings Group Inc. grew its stake in Sunstone Hotel Investors by 45.9% during the 1st quarter. Westwood Holdings Group Inc. now owns 3,576,897 shares of the real estate investment trust's stock valued at $33,659,000 after acquiring an additional 1,125,543 shares in the last quarter. Institutional investors and hedge funds own 99.37% of the company's stock.

Sunstone Hotel Investors Trading Up 3.7%

Sunstone Hotel Investors stock traded up $0.35 during trading on Friday, hitting $9.77. The company had a trading volume of 3,413,987 shares, compared to its average volume of 2,131,065. Sunstone Hotel Investors, Inc. has a 1-year low of $7.45 and a 1-year high of $12.41. The company has a current ratio of 2.73, a quick ratio of 2.73 and a debt-to-equity ratio of 0.51. The company's 50 day simple moving average is $9.11 and its 200-day simple moving average is $9.02. The stock has a market cap of $1.86 billion, a price-to-earnings ratio of 488.74, a price-to-earnings-growth ratio of 3.45 and a beta of 1.29.

Sunstone Hotel Investors (NYSE:SHO - Get Free Report) last posted its earnings results on Wednesday, August 6th. The real estate investment trust reported $0.28 earnings per share for the quarter, beating the consensus estimate of $0.26 by $0.02. Sunstone Hotel Investors had a net margin of 2.15% and a return on equity of 1.12%. The firm had revenue of $259.77 million during the quarter, compared to the consensus estimate of $256.68 million. During the same quarter last year, the firm earned $0.28 EPS. The firm's revenue for the quarter was up 5.0% on a year-over-year basis. As a group, analysts expect that Sunstone Hotel Investors, Inc. will post 0.79 EPS for the current fiscal year.

Sunstone Hotel Investors Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, October 15th. Shareholders of record on Tuesday, September 30th will be given a $0.09 dividend. This represents a $0.36 annualized dividend and a yield of 3.7%. The ex-dividend date of this dividend is Tuesday, September 30th. Sunstone Hotel Investors's dividend payout ratio (DPR) is currently 1,800.00%.

Analysts Set New Price Targets

A number of research firms have weighed in on SHO. Wall Street Zen lowered shares of Sunstone Hotel Investors from a "hold" rating to a "sell" rating in a research note on Friday, September 5th. Truist Financial decreased their target price on shares of Sunstone Hotel Investors from $11.00 to $10.00 and set a "hold" rating on the stock in a research note on Wednesday, September 3rd. Wells Fargo & Company decreased their target price on shares of Sunstone Hotel Investors from $9.00 to $8.50 and set an "equal weight" rating on the stock in a research note on Tuesday, July 1st. JPMorgan Chase & Co. began coverage on shares of Sunstone Hotel Investors in a research note on Monday, June 23rd. They issued an "underweight" rating and a $8.00 target price on the stock. Finally, Evercore ISI raised their target price on shares of Sunstone Hotel Investors from $10.00 to $11.00 and gave the stock an "outperform" rating in a research note on Monday, July 28th. Two investment analysts have rated the stock with a Buy rating, three have given a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, the company currently has an average rating of "Hold" and an average target price of $8.93.

Sunstone Hotel Investors Profile

Sunstone Hotel Investors, Inc is a lodging real estate investment trust ("REIT") that as of the date of this release owns 14 hotels comprised of 6,675 rooms, the majority of which are operated under nationally recognized brands. Sunstone's strategy is to create long-term stakeholder value through the acquisition, active ownership, and disposition of well-located hotel and resort real estate.