Massachusetts Financial Services Co. MA Trims Holdings in Sunstone Hotel Investors, Inc. $SHO

Key Points

• Massachusetts Financial Services Co. MA trimmed its stake in Sunstone Hotel Investors (SHO) by 14.3% in Q4, selling 848,804 shares and now owning 5,087,696 shares (~2.68%) valued at $45.48 million.
• Q results beat expectations: Sunstone reported $0.20 EPS vs. $0.18 expected and revenue of $236.97M (+10.3% YoY); it set FY2026 guidance of $0.810–0.940 EPS while analysts forecast ~0.79 EPS and hold an average price target of $9.63.
• Sunstone declared a quarterly dividend of $0.09 (annualized $0.36, ~3.7% yield) payable April 15, but the payout ratio is extremely high at 900%; the stock trades near $9.73 with a 52-week range of $7.93–$10.27.

Massachusetts Financial Services Co. MA cut its stake in Sunstone Hotel Investors, Inc. (NYSE:SHO - Free Report) by 14.3% in the 4th quarter, according to the company in its most recent disclosure with the SEC. The institutional investor owned 5,087,696 shares of the real estate investment trust's stock after selling 848,804 shares during the quarter. Massachusetts Financial Services Co. MA owned about 2.68% of Sunstone Hotel Investors worth $45,484,000 at the end of the most recent quarter.

Other hedge funds also recently made changes to their positions in the company. Hantz Financial Services Inc. grew its position in shares of Sunstone Hotel Investors by 62.4% in the third quarter. Hantz Financial Services Inc. now owns 4,884 shares of the real estate investment trust's stock valued at $46,000 after purchasing an additional 1,876 shares in the last quarter. CWM LLC grew its stake in Sunstone Hotel Investors by 21.7% during the third quarter. CWM LLC now owns 9,773 shares of the real estate investment trust's stock valued at $92,000 after acquiring an additional 1,744 shares in the last quarter. Cerity Partners LLC purchased a new position in Sunstone Hotel Investors during the second quarter valued at approximately $88,000. PNC Financial Services Group Inc. grew its stake in Sunstone Hotel Investors by 16.7% during the third quarter. PNC Financial Services Group Inc. now owns 12,012 shares of the real estate investment trust's stock valued at $113,000 after acquiring an additional 1,720 shares in the last quarter. Finally, United Services Automobile Association purchased a new position in Sunstone Hotel Investors during the first quarter valued at approximately $120,000. 99.37% of the stock is currently owned by hedge funds and other institutional investors.

Sunstone Hotel Investors Price Performance

Sunstone Hotel Investors stock opened at $9.73 on Wednesday. Sunstone Hotel Investors, Inc. has a 52 week low of $7.93 and a 52 week high of $10.27. The business has a 50-day simple moving average of $9.24 and a 200 day simple moving average of $9.19. The company has a quick ratio of 2.94, a current ratio of 2.94 and a debt-to-equity ratio of 0.55. The stock has a market cap of $1.84 billion, a price-to-earnings ratio of 243.31, a PEG ratio of 2.63 and a beta of 0.97.

Sunstone Hotel Investors (NYSE:SHO - Get Free Report) last released its quarterly earnings results on Friday, February 27th. The real estate investment trust reported $0.20 EPS for the quarter, topping analysts' consensus estimates of $0.18 by $0.02. Sunstone Hotel Investors had a net margin of 2.56% and a return on equity of 1.44%. The business had revenue of $236.97 million during the quarter, compared to analysts' expectations of $226.18 million. During the same quarter in the previous year, the company earned $0.16 EPS. The business's quarterly revenue was up 10.3% compared to the same quarter last year. Sunstone Hotel Investors has set its FY 2026 guidance at 0.810-0.940 EPS. On average, research analysts forecast that Sunstone Hotel Investors, Inc. will post 0.79 earnings per share for the current fiscal year.

Sunstone Hotel Investors Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, April 15th. Shareholders of record on Tuesday, March 31st will be paid a $0.09 dividend. This represents a $0.36 dividend on an annualized basis and a yield of 3.7%. The ex-dividend date of this dividend is Tuesday, March 31st. Sunstone Hotel Investors's payout ratio is currently 900.00%.

Analyst Ratings Changes

Several equities analysts recently commented on the stock. LADENBURG THALM/SH SH assumed coverage on shares of Sunstone Hotel Investors in a research note on Thursday, March 26th. They set a "hold" rating and a $10.00 price objective for the company. Wells Fargo & Company reduced their price objective on shares of Sunstone Hotel Investors from $11.00 to $10.00 and set an "overweight" rating for the company in a research note on Tuesday, March 24th. Zacks Research cut shares of Sunstone Hotel Investors from a "hold" rating to a "strong sell" rating in a research note on Wednesday, January 14th. Truist Financial boosted their price objective on shares of Sunstone Hotel Investors from $10.00 to $11.00 and gave the company a "hold" rating in a research note on Thursday, March 26th. Finally, Robert W. Baird restated a "neutral" rating and set a $10.00 target price on shares of Sunstone Hotel Investors in a research report on Monday, January 12th. Three equities research analysts have rated the stock with a Buy rating, four have issued a Hold rating and three have given a Sell rating to the company's stock. According to MarketBeat, the company has an average rating of "Hold" and an average target price of $9.63.

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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