Hsbc Holdings PLC Buys 112,332 Shares of Sunstone Hotel Investors, Inc. $SHO

Key Points

• HSBC Holdings PLC increased its stake in Sunstone Hotel Investors by 23.1% in the fourth quarter, buying 112,332 additional shares and bringing its total holding to 598,257 shares valued at about $5.35 million.
• Sunstone Hotel Investors reported better-than-expected quarterly results, posting EPS of $0.27 versus the $0.22 consensus and revenue of $259.71 million, up 10.9% year over year.
• The company also announced a quarterly dividend of $0.09 per share, payable July 15, which works out to an annualized yield of 3.2%.

Hsbc Holdings PLC raised its stake in Sunstone Hotel Investors, Inc. (NYSE:SHO - Free Report) by 23.1% during the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 598,257 shares of the real estate investment trust's stock after buying an additional 112,332 shares during the quarter. Hsbc Holdings PLC owned 0.32% of Sunstone Hotel Investors worth $5,353,000 as of its most recent filing with the Securities and Exchange Commission.

A number of other hedge funds and other institutional investors have also recently added to or reduced their stakes in SHO. Alpine Global Management LLC acquired a new position in shares of Sunstone Hotel Investors during the 4th quarter worth about $176,000. Mercer Global Advisors Inc. ADV boosted its stake in Sunstone Hotel Investors by 14.3% during the 4th quarter. Mercer Global Advisors Inc. ADV now owns 44,563 shares of the real estate investment trust's stock worth $398,000 after acquiring an additional 5,567 shares during the last quarter. XTX Topco Ltd bought a new position in Sunstone Hotel Investors during the 4th quarter worth approximately $235,000. Voloridge Investment Management LLC acquired a new position in Sunstone Hotel Investors during the fourth quarter valued at approximately $931,000. Finally, Virtus Investment Advisers LLC acquired a new position in Sunstone Hotel Investors during the fourth quarter valued at approximately $159,000. Institutional investors own 99.37% of the company's stock.

Insider Activity

In related news, insider Robert C. Springer sold 89,631 shares of the company's stock in a transaction dated Wednesday, June 24th. The stock was sold at an average price of $11.62, for a total transaction of $1,041,512.22. Following the sale, the insider owned 573,743 shares in the company, valued at approximately $6,666,893.66. This represents a 13.51% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Corporate insiders own 1.40% of the company's stock.

Wall Street Analyst Weigh In

Several equities research analysts have weighed in on the stock. Citigroup increased their target price on shares of Sunstone Hotel Investors from $9.50 to $10.00 and gave the stock a "neutral" rating in a report on Wednesday, May 6th. Wells Fargo & Company boosted their price target on shares of Sunstone Hotel Investors from $12.00 to $13.00 and gave the company an "overweight" rating in a report on Wednesday, June 24th. LADENBURG THALM/SH SH initiated coverage on shares of Sunstone Hotel Investors in a research report on Thursday, March 26th. They issued a "hold" rating and a $10.00 price objective for the company. Truist Financial raised their price objective on Sunstone Hotel Investors from $10.00 to $11.00 and gave the stock a "hold" rating in a research note on Thursday, March 26th. Finally, Zacks Research upgraded Sunstone Hotel Investors from a "hold" rating to a "strong-buy" rating in a report on Monday, May 18th. One research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating and five have assigned a Hold rating to the company. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $10.83.

Sunstone Hotel Investors Stock Performance

Shares of SHO stock opened at $11.25 on Friday. Sunstone Hotel Investors, Inc. has a 12 month low of $8.48 and a 12 month high of $12.07. The company's fifty day simple moving average is $11.05 and its 200-day simple moving average is $9.87. The firm has a market cap of $2.10 billion, a PE ratio of 102.29, a P/E/G ratio of 2.47 and a beta of 0.97. The company has a quick ratio of 3.42, a current ratio of 3.42 and a debt-to-equity ratio of 0.58.

Sunstone Hotel Investors (NYSE:SHO - Get Free Report) last released its earnings results on Tuesday, May 5th. The real estate investment trust reported $0.27 earnings per share for the quarter, beating analysts' consensus estimates of $0.22 by $0.05. Sunstone Hotel Investors had a net margin of 3.84% and a return on equity of 2.27%. The business had revenue of $259.71 million during the quarter, compared to the consensus estimate of $244.29 million. During the same quarter last year, the firm earned $0.21 earnings per share. The firm's revenue for the quarter was up 10.9% compared to the same quarter last year. Sunstone Hotel Investors has set its FY 2026 guidance at 0.880-0.960 EPS. Equities research analysts expect that Sunstone Hotel Investors, Inc. will post 0.91 EPS for the current fiscal year.

Sunstone Hotel Investors Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, July 15th. Investors of record on Tuesday, June 30th will be given a $0.09 dividend. The ex-dividend date of this dividend is Tuesday, June 30th. This represents a $0.36 dividend on an annualized basis and a dividend yield of 3.2%. Sunstone Hotel Investors's payout ratio is currently 327.27%.

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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