Bank of America Corp DE Boosts Holdings in Sunstone Hotel Investors, Inc. $SHO

Key Points

• Bank of America increased its Sunstone Hotel Investors stake by 21.1% in the first quarter, adding 1.76 million shares to own 10.1 million shares, or 5.42% of the REIT valued at approximately $91 million.
• Sunstone reported quarterly EPS of $0.14, beating the $0.08 consensus, while revenue of $277.1 million also exceeded expectations. Management set full-year 2026 EPS guidance at $0.93–$0.98.
• The company declared a quarterly dividend of $0.09 per share, implying a 3.2% annualized yield, while analysts maintain a consensus “Hold” rating with an average price target of $10.67.

Bank of America Corp DE lifted its holdings in Sunstone Hotel Investors, Inc. (NYSE:SHO - Free Report) by 21.1% in the first quarter, according to the company in its most recent filing with the SEC. The fund owned 10,099,538 shares of the real estate investment trust's stock after acquiring an additional 1,757,965 shares during the quarter. Bank of America Corp DE owned 5.42% of Sunstone Hotel Investors worth $90,997,000 at the end of the most recent quarter.

A number of other institutional investors also recently made changes to their positions in the business. Kestra Advisory Services LLC purchased a new position in Sunstone Hotel Investors in the 4th quarter worth $26,000. North Star Investment Management Corp. purchased a new stake in Sunstone Hotel Investors during the first quarter valued at about $27,000. Mirae Asset Global Investments Co. Ltd. boosted its position in Sunstone Hotel Investors by 27.4% during the fourth quarter. Mirae Asset Global Investments Co. Ltd. now owns 5,274 shares of the real estate investment trust's stock valued at $47,000 after buying an additional 1,135 shares during the period. FIL Ltd boosted its position in Sunstone Hotel Investors by 57.2% during the fourth quarter. FIL Ltd now owns 9,010 shares of the real estate investment trust's stock valued at $81,000 after buying an additional 3,280 shares during the period. Finally, Cerity Partners LLC bought a new position in shares of Sunstone Hotel Investors during the second quarter valued at about $88,000. Hedge funds and other institutional investors own 99.37% of the company's stock.

Sunstone Hotel Investors Price Performance

Shares of Sunstone Hotel Investors stock opened at $11.11 on Friday. The company's fifty day simple moving average is $11.55 and its two-hundred day simple moving average is $10.22. Sunstone Hotel Investors, Inc. has a 12-month low of $8.61 and a 12-month high of $12.07. The firm has a market cap of $2.07 billion, a PE ratio of 50.52, a price-to-earnings-growth ratio of 2.25 and a beta of 0.97. The company has a quick ratio of 3.42, a current ratio of 7.01 and a debt-to-equity ratio of 0.59.

Sunstone Hotel Investors (NYSE:SHO - Get Free Report) last issued its quarterly earnings data on Thursday, August 6th. The real estate investment trust reported $0.14 EPS for the quarter, beating the consensus estimate of $0.08 by $0.06. The firm had revenue of $277.11 million during the quarter, compared to the consensus estimate 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. As a group, equities analysts expect that Sunstone Hotel Investors, Inc. will post 0.97 EPS for the current year.

Sunstone Hotel Investors Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, October 15th. Shareholders of record on Wednesday, September 30th will be given a dividend of $0.09 per share. The ex-dividend date of this dividend is Wednesday, September 30th. This represents a $0.36 dividend on an annualized basis and a yield of 3.2%. Sunstone Hotel Investors's dividend payout ratio is presently 327.27%.

Analyst Upgrades and Downgrades

Several research analysts have recently commented on the company. Wells Fargo & Company upgraded Sunstone Hotel Investors to a "strong-buy" rating in a report on Thursday, July 23rd. Wall Street Zen lowered Sunstone Hotel Investors from a "buy" rating to a "hold" rating in a research report on Saturday. Zacks Research cut Sunstone Hotel Investors from a "strong-buy" rating to a "hold" rating in a research note on Thursday, July 23rd. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Sunstone Hotel Investors in a research note on Friday, July 10th. Finally, JPMorgan Chase & Co. boosted their price objective 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. One equities research analyst has rated the stock with a Strong Buy rating, six have issued a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, Sunstone Hotel Investors has an average rating of "Hold" and an average price target of $10.67.

More Sunstone Hotel Investors News

Here are the key news stories impacting Sunstone Hotel Investors this week:

• Positive Sentiment: Q2 results beat expectations: Sunstone reported EPS of $0.14 versus the $0.08 consensus estimate and revenue of $277.1 million versus expectations of $266.7 million. Net income increased to $26.0 million from $10.8 million a year earlier. Sunstone Hotel Q2 Earnings Snapshot
• Positive Sentiment: Funds from operations improved: Adjusted FFO rose 14.3% year over year to $0.32 per share, exceeding the $0.30 consensus estimate and supporting the REIT’s ability to maintain its dividend. Sunstone Hotel Investors Tops Q2 FFO and Revenue Estimates
• Positive Sentiment: 2026 guidance was raised: Management now expects full-year EPS of $0.93-$0.98, above the $0.91 analyst consensus. It also projects 2026 net income of $79 million-$89 million. Sunstone Hotel Investors Reports Second Quarter 2026 Results
• Positive Sentiment: Hotel fundamentals strengthened: Companywide RevPAR increased 9.3% to $263.61, while total RevPAR rose 7.7% to $434.00. Adjusted EBITDAre also increased 5.5% to $76.7 million.
• Positive Sentiment: Asset sale improved liquidity: Sunstone completed the $279 million sale of the Hyatt Regency San Francisco to Blackstone-affiliated funds, giving the hotel REIT additional capital flexibility.
• Neutral Sentiment: Dividend announcements: Sunstone declared its regular $0.09-per-share quarterly common dividend, payable October 15, and a $0.3562 dividend on its 5.70% Series I preferred stock. These reinforce shareholder returns but are not new earnings drivers.

Insider Buying and Selling

In other Sunstone Hotel Investors news, insider Robert C. Springer sold 89,631 shares of the stock in a transaction that occurred on Wednesday, June 24th. The stock was sold at an average price of $11.62, for a total value of $1,041,512.22. Following the completion of the sale, the insider owned 573,743 shares in the company, valued at approximately $6,666,893.66. This trade represents a 13.51% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. 1.40% of the stock is owned by insiders.

Sunstone Hotel Investors Company Profile

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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