Alyeska Investment Group L.P. Grows Holdings in Sunstone Hotel Investors, Inc. $SHO

Key Points

• Alyeska Investment Group L.P. has significantly increased its stake in Sunstone Hotel Investors by 251%, now holding approximately 1.75 million shares valued at $16.5 million.
• Wall Street analysts have mixed ratings on Sunstone Hotel Investors, with target prices ranging from $8.00 to $11.00, resulting in an average rating of "Hold" and a target price of $8.93.
• The company recently announced a quarterly dividend of $0.09, which translates to an annualized yield of 3.8% despite a very high payout ratio of 1,800%.

Alyeska Investment Group L.P. raised its stake in shares of Sunstone Hotel Investors, Inc. (NYSE:SHO - Free Report) by 251.0% during the 1st quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 1,754,955 shares of the real estate investment trust's stock after purchasing an additional 1,254,955 shares during the period. Alyeska Investment Group L.P. owned 0.88% of Sunstone Hotel Investors worth $16,514,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors have also added to or reduced their stakes in the stock. Massachusetts Financial Services Co. MA purchased a new position in shares of Sunstone Hotel Investors in the first quarter worth about $42,838,000. GRS Advisors LLC purchased a new position in shares of Sunstone Hotel Investors in the fourth quarter worth about $22,980,000. Woodline Partners LP purchased a new position in shares of Sunstone Hotel Investors in the fourth quarter worth about $17,309,000. 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. Finally, Nuveen LLC purchased a new position in shares of Sunstone Hotel Investors in the first quarter worth about $10,858,000. 99.37% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

Several equities analysts have recently weighed in on SHO shares. Wall Street Zen downgraded 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 price target 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. Evercore ISI raised their price target 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. Wells Fargo & Company decreased their price target 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. Finally, JPMorgan Chase & Co. began coverage on shares of Sunstone Hotel Investors in a research note on Monday, June 23rd. They set an "underweight" rating and a $8.00 target price on the stock. Two equities research analysts have rated the stock with a Buy rating, three have given a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat, the stock currently has an average rating of "Hold" and a consensus price target of $8.93.

Sunstone Hotel Investors Trading Down 0.9%

SHO stock traded down $0.09 during trading on Wednesday, reaching $9.30. 468,162 shares of the stock were exchanged, compared to its average volume of 2,351,719. 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 business has a 50 day moving average price of $9.07 and a 200-day moving average price of $9.03. Sunstone Hotel Investors, Inc. has a 1 year low of $7.45 and a 1 year high of $12.41. The firm has a market capitalization of $1.77 billion, a price-to-earnings ratio of 464.98, a P/E/G ratio of 3.46 and a beta of 1.29.

Sunstone Hotel Investors (NYSE:SHO - Get Free Report) last issued its earnings results on Wednesday, August 6th. The real estate investment trust reported $0.28 EPS for the quarter, topping analysts' consensus estimates 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 company had revenue of $259.77 million for the quarter, compared to the consensus estimate of $256.68 million. During the same period in the previous year, the firm earned $0.28 earnings per share. Sunstone Hotel Investors's quarterly revenue was up 5.0% compared to the same quarter last year. On average, research analysts predict that Sunstone Hotel Investors, Inc. will post 0.79 earnings per share for the current year.

Sunstone Hotel Investors Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, October 15th. Stockholders of record on Tuesday, September 30th will be paid a $0.09 dividend. This represents a $0.36 dividend on an annualized basis and a dividend yield of 3.9%. The ex-dividend date of this dividend is Tuesday, September 30th. Sunstone Hotel Investors's payout ratio is 1,800.00%.

Sunstone Hotel Investors Company 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.