Victory Capital Management Inc. Boosts Holdings in Sunstone Hotel Investors, Inc. (NYSE:SHO)

Key Points

• Victory Capital Management Inc. increased its stake in Sunstone Hotel Investors by 994.8%, owning 407,682 shares worth approximately $3.8 million, according to its latest SEC filing.
• Sunstone Hotel Investors reported quarterly earnings of $0.21 per share, surpassing consensus estimates of $0.18, while revenue for the quarter was $234.07 million, below expectations.
• The company announced a quarterly dividend of $0.09 per share, translating to an annualized yield of 4.01%, despite a high dividend payout ratio of 360.00%.

Victory Capital Management Inc. raised its stake in shares of Sunstone Hotel Investors, Inc. (NYSE:SHO - Free Report) by 994.8% during the 1st quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 407,682 shares of the real estate investment trust's stock after purchasing an additional 370,443 shares during the period. Victory Capital Management Inc. owned 0.20% of Sunstone Hotel Investors worth $3,836,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors have also added to or reduced their stakes in the company. Mercer Global Advisors Inc. ADV purchased a new position in Sunstone Hotel Investors during the fourth quarter valued at $190,000. GAMMA Investing LLC raised its position in shares of Sunstone Hotel Investors by 47.7% in the first quarter. GAMMA Investing LLC now owns 4,831 shares of the real estate investment trust's stock valued at $45,000 after buying an additional 1,560 shares during the last quarter. Xponance Inc. raised its position in shares of Sunstone Hotel Investors by 10.9% in the fourth quarter. Xponance Inc. now owns 14,709 shares of the real estate investment trust's stock valued at $174,000 after buying an additional 1,441 shares during the last quarter. KLP Kapitalforvaltning AS acquired a new stake in shares of Sunstone Hotel Investors in the fourth quarter valued at about $475,000. Finally, Waterfront Capital Partners LLC acquired a new stake in shares of Sunstone Hotel Investors in the fourth quarter valued at about $2,219,000. 99.37% of the stock is owned by hedge funds and other institutional investors.

Sunstone Hotel Investors Trading Down 0.1%

Sunstone Hotel Investors stock traded down $0.01 during midday trading on Thursday, hitting $8.79. 461,958 shares of the stock were exchanged, compared to its average volume of 2,366,648. Sunstone Hotel Investors, Inc. has a fifty-two week low of $7.45 and a fifty-two week high of $12.41. The stock has a market capitalization of $1.75 billion, a price-to-earnings ratio of 87.85, a PEG ratio of 1.98 and a beta of 1.25. The stock's 50-day simple moving average is $8.86 and its 200 day simple moving average is $9.49. The company has a current ratio of 2.89, a quick ratio of 2.89 and a debt-to-equity ratio of 0.47.

Sunstone Hotel Investors (NYSE:SHO - Get Free Report) last released its quarterly earnings data on Tuesday, May 6th. The real estate investment trust reported $0.21 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.18 by $0.03. The firm had revenue of $234.07 million during the quarter, compared to analysts' expectations of $243.34 million. Sunstone Hotel Investors had a net margin of 3.85% and a return on equity of 1.93%. Sunstone Hotel Investors's revenue was up 7.8% compared to the same quarter last year. During the same period last year, the business earned $0.18 earnings per share. On average, equities analysts anticipate that Sunstone Hotel Investors, Inc. will post 0.79 EPS for the current year.

Sunstone Hotel Investors Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Tuesday, July 15th. Shareholders of record on Monday, June 30th were paid a dividend of $0.09 per share. This represents a $0.36 annualized dividend and a yield of 4.10%. The ex-dividend date was Monday, June 30th. Sunstone Hotel Investors's dividend payout ratio (DPR) is presently 360.00%.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently commented on SHO shares. JPMorgan Chase & Co. started coverage on shares of Sunstone Hotel Investors in a research report on Monday, June 23rd. They issued an "underweight" rating and a $8.00 target price for the company. Morgan Stanley reduced their target price on shares of Sunstone Hotel Investors from $9.00 to $7.00 and set an "underweight" rating for the company in a research report on Tuesday, April 22nd. Evercore ISI increased their target price on shares of Sunstone Hotel Investors from $10.00 to $11.00 and gave the company an "outperform" rating in a research report on Monday. Bank of America upgraded shares of Sunstone Hotel Investors from an "underperform" rating to a "buy" rating and set a $10.00 target price for the company in a research report on Wednesday, April 30th. Finally, Wells Fargo & Company reduced their target price on shares of Sunstone Hotel Investors from $9.00 to $8.50 and set an "equal weight" rating for the company in a research report on Tuesday, July 1st. Three analysts have rated the stock with a sell rating, three have issued a hold rating and two have issued a buy rating to the company's stock. According to MarketBeat, the company currently has an average rating of "Hold" and a consensus price target of $9.07.

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.